Asia Pacific’s e-commerce sector, expanding at 12% annually, will be worth US$2.1 trillion by 2021 as consumers increasingly switch to digital payments such as e-wallets and bank transfers.
This is leading to a relative decline in the prevalence of online credit and debit transactions, according to a study of 36 markets. In China, e-wallets – such as Alipay, Tenpay and WeChat Pay – now account for 62% of e-commerce transactions. Credit cards represent 10%, but will be replaced by bank transfers, which will take a 14% market share by 2021.
Other Asian markets will continue to lag behind China in terms of the adoption of e-wallets – they will account for 28% of Hong Kong’s online payments by 2021; in Singapore, such payments will nearly double from 13% today to 21% in four years’ time.
Singapore’s e-commerce market is plateauing, with nearly three quarters of the city-state’s online users already shopping over the Internet – the sector will likely grow 9% to be worth $6.5 billion in 2021, outpaced by India and South Korea, whose e-commerce industries will expand 25% and 19% respectively over the same period.