Southeast Asia’s e-commerce market is projected to grow significantly, becoming the world’s second-fastest growing market by 2029, according to a study by IDC commissioned by 2C2P by Antom. The region’s e-commerce sector is expected to expand by 85.4%, reaching US$289.8b, with digital payments playing a pivotal role in this growth.
The study highlights that digital payments will account for 97% of e-commerce transactions by 2029, up from 89% in 2024. Mobile wallets and domestic payment schemes are set to overtake traditional card payments, with domestic payments expected to increase by 104% to US$92b. Mobile wallets are projected to grow by 107%, reaching US$79b, whilst Buy Now Pay Later (BNPL) services are anticipated to surge by 174% to US$18.9b.
Small and medium-sized enterprises (SMEs) are identified as crucial to this growth, with the potential to unlock an additional US$20.8b in regional e-commerce value through increased cross-border participation. However, challenges such as integration complexity, fraud concerns, and fragmented payment systems remain barriers to their digitalisation.
Worachat Luxkanalode, Group CEO of 2C2P by Antom, emphasised the importance of equipping businesses with the necessary tools to navigate the complex payment landscape. “Southeast Asia’s businesses, especially SMEs, are at the heart of the region’s economic growth,” he stated.
As Southeast Asia’s e-commerce market continues to expand, the focus will be on overcoming digitalisation challenges to fully capitalise on the region’s digital economy potential.
