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Worldpay: eCommerce predictions for Asia Pacific in 2019 and beyond

January 30, 2019 Financial No Comments Email Email


The outlook for eCommerce across Asia Pacific continues to be defined by extraordinary growth. Asia Pacific is the leading eCommerce region globally and stands at the forefront of payment innovation, particularly in terms of mobile commerce and the rise of frictionless, invisible payments – offering convenience so seamless that the act of payment is effortless.https://join.travelmanagers.com.au/benefits/earn-more/

Here are Worldpay’s predictions for Asia Pacific’s eCommerce market in 2019 and beyond1:

  1. Asia Pacific will lead the way in the global transition to mCommerce, which is set to become the most popular online channel over the next four years in a number of Asia Pacific markets including Hong Kong (2019), Singapore (2019), Australia (2020) and India (2020). mCommerce is already the most popular in South Korea and China.
  2. Asian consumers expect seamless ease and security in their digital lives, most of all when it comes to shopping and payments. This desire for frictionless payments will continue to make Asia Pacific a pioneer in the move to invisible payments, particularly as the popularity of eWallets continues to soar.
  3. Dramatic shifts from cash to eWallets will occur at Point of Sale (POS) over the next four years, with eWallets set to grow from 27 percent of POS market share in 2018 to 42 percent by 2022. On the eCommerce side, Asia Pacific will continue to lead the world in the adoption of eWallets, which will account for two-thirds of regional payment volume by 2022.

Across specific markets in Asia Pacific, Worldpay expects the following trends to emerge:

China

  • The eCommerce market in China is set to increase by 41 percent by 2022, reaching US$1.78 trillion – a compound annual growth rate (CAGR) of 9 percent. Mobile is the fastest growing channel at 12 percent CAGR, while desktop sales are growing by just 4 percent CAGR.
  • In China, online retail, social communication and payments are seamlessly integrated – and consumers are ready for the next generation of frictionless, invisible payments. The rise of “new retail” concepts such as Alibaba’s Hema Supermarkets will continue to influence shopper demands for seamless retail between online to offline.
  • Seamless shopping is made largely possible through eWallets, which will continue to grow and dominate China’s eCommerce market. Currently 63 percent of eCommerce sales use eWallets and they are set to grow at a rate of 13 percent CAGR, forecasted to become a whopping 85 percent of the market in 2022 – up 20 percentage points on 2018.

Hong Kong

  • The eCommerce market in Hong Kong is poised to increase by 11 percent in 2019 to reach US$17.9 million.
  • mCommerce is set to become Hong Kong’s most popular online shopping channel in the next 12 months, at which point mobile is projected to account for over 50 percent of all online sales.
  • Hong Kong will continue to stay ahead of the pack in adopting alternative, cashless payments such as eWallets. Rising at a rate of 17 percent year-on-year, eWallets are forecasted to make up 27 percent of Hong Kong’s eCommerce market in 2019.

Singapore

  • The eCommerce market in Singapore is set to grow by 48 percent by 2022 to US$7.4bn (7 percent CAGR).
  • Desktop sales are projected to remain stagnant, while mobile is growing at 13 percent CAGR. mCommerce is on track to overtake desktop sales this year, at which point it will make up 52 percent of all online sales.
  • eWallets are also continuing to grow at a rate of 14 percent CAGR. Currently 10 percent of the market, eWallets are forecasted to make up 13 percent by 2022. Similar, eWallet growth is also reflected in-store. They are on track to become 9 percent of the POS market by 2022.

India

  • Consumers in India have typically found eCommerce to be inconvenient but that is starting to change with mCommerce adoption and simpler payment methods such as eWallets. India’s eCommerce market is predicted to increase by 116 percent between now and 2022, reaching US$94.9 billion – a 21 percent CAGR.
  • Mobile is the fastest growing channel at 28 percent CAGR. Desktop is growing at a rate of 14 percent per annum. mCommerce is on track to overtake desktop in 2020, projected to make up 52 percent of sales.
  • eWallets are set to maintain their crown as the most popular online payment method, growing at a rate of 28 percent CAGR. By 2022, eWallets will become 44 percent of the eCommerce market, from 26 percent in 2018.

Australia

  • The eCommerce market in Australia is set to grow by 37 percent in the next four years, demonstrating an 8 percent CAGR, eventually hitting US$43.6 billion in 2022.
  • Desktop sales are set to remain stagnant but mobile is forecasted to grow 17 percent per annum. mCommerce is projected to overtake desktop sales by 2020, to make up 54 percent of all eCommerce sales.
  • Australian consumers lean toward convenience, so while credit cards remain the top payment option, eWallets are catching up. By 2022, eWallets will make up 25 percent of the eCommerce market in Australia, up 7 percent on 2018 – growing at a rate of 9 percent CAGR.

Phil Pomford, general manager for Asia Pacific, Global Enterprise eCommerce at Worldpay, said: “In 2019, it’s more important than ever for merchants to tailor their mix of payment methods to match the preferences of local shoppers.”

“Asia leads the way in a trend we’ve seen across the globe – the rise of mCommerce and alterative payments like eWallets, both in-store and online, as consumers increasingly seek the most friction-free shopping and payment experience. With some of the highest rates of smartphone penetration in the world and a preference for digital payment methods like eWallets, it’s no surprise that consumers in Asia Pacific are eager for more opportunities to enjoy the shopping experiences they love via innovative new channels.”

“The most important advice for retailers is providing a consistent overall retail experience that matches brand attributes, so that consumers can enjoy seamless and secure shopping and payments from desktop, to mobile, to bricks-and-mortar.”



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