Failure to Localize Payments Could Cost Online Merchants 60% of Sales in APAC

Businesses worldwide are facing significant headwinds in 2023, with inflation still a global concern and rising interest rates leading to fears of recession. Many companies hope to compensate for these potential revenue hits by expanding into high-growth markets worldwide. Despite complications for newcomers, the potential upsides are impressive.

The Asia-Pacific region offers great potential for eCommerce entrants, largely thanks to its exceptional level of digital payments acceptance. Misconceptions abound about high-growth markets in the eCommerce space, however. PYMNTS research found that eTailers offering local payment options generate 22% more in regional revenue than those lacking these options, yet just 1.8% of merchants believe that customers desire these local methods.

The “Global Commerce Tracker®” examines the latest developments in high-growth markets and why merchants looking to invest there must leverage local payment options or risk near-certain failure.

Around the Global Commerce Space

A recent Mastercard study found that the Asia-Pacific (APAC) region has become the most enthusiastic part of the world for digital transactions, with 88% of consumers leveraging digital wallets, QR codes, buy now, pay later (BNPL), cryptocurrencies, biometrics or some other digital payments technology. At 94% of consumers, Thailand leads the region in digital payments adoption, as 94% of consumers have used some type of digital payment. The Asian market could maintain this lead well into the future, as 69% of consumers increased their use of digital payments in the past year.

eCommerce is becoming a regular activity around the globe, with a recent study finding that 54% of shoppers buy from online platforms at least once per month, and 27% do so two to three times monthly. Seventy-five percent of consumers used their smartphones for online purchases, and clothing and accessories were the most common purchases, with 62% of shoppers buying these items online in the past 12 months. More than half of shoppers said the price was the dominant factor in their decisions when selecting items or storefronts.

For more on these and other stories, visit the Tracker’s News and Trends section.

For Smooth Entry into High-Growth Markets, Consult the Locals

Entering high-growth markets can lead to substantial revenue gains for international merchants, but assuming that all such markets are the same could be a costly mistake. Every country has its own unique regulations, economy and culture, and some businesses barge in without a plan at their peril.

To get the Insider POV, we spoke with experts at Worldline and EBANX to learn why local expertise can mean the difference between success and failure in high-growth markets worldwide.

Payment Challenges and Opportunities in High-Growth Markets

Southeast Asia has become a tempting area of expansion for international corporates due to its high level of digital payments penetration. A recent study indicates that nearly 90% of the population uses digital wallets or other forms of electronic payment. Entry into this quickly growing economy is not as straightforward as it seems, however, especially when considering the cross-border payments necessary to do business in the region.

To learn more about the unique challenges and opportunities for new entrants into four promising high-growth markets, read the Tracker’s PYMNTS Intelligence.

About the Tracker

The “Global Commerce Tracker®,” a collaboration with Worldline, examines the latest developments in high-growth markets and why merchants looking to invest there must leverage local payment options or risk near-certain failure.