Thai merchants urged to go digital for THB11-trn regional market

Digital payments and cross-border trade in Southeast Asia’s e-commerce market are projected to reach 11.21 trillion baht (US$325 billion) by 2028, according to a report by International Data Corporation (IDC), 2C2P and Antom. 

The study advised merchants to understand the region’s digital payment landscape and offer payment methods that meet consumer needs.

Digital payments will account for 94% of total payments in the Southeast Asian e-commerce market by 2028, according to the IDC-led report.

It projected real-time digital payment in the region will grow exponentially to over 379.5 trillion baht ($11 trillion) by 2028, driven by government projects to promote cashless payment.

The report noted the growing popularity of digital wallets in Indonesia, Malaysia and Vietnam, and domestic payment systems in Singapore and Thailand.

Regional cross-border trade is projected to reach 504 billion baht ($14.6 billion) by 2028, a 2.8-fold increase from 2023. 

Cross-border transactions per consumer in Southeast Asia are typically higher in value than domestic transactions, except in Vietnam and Indonesia, the report said.

It added that Regional Payment Connectivity (RPC) will boost flexibility, efficiency and cost-effectiveness of cross-border payments in Southeast Asia.

The report noted that 62% of Southeast Asian traders generated 21% more revenue from cross-border transactions than domestic transactions, making expansion to neighbouring markets potentially worthwhile for traders.

However, it warned that merchants need to understand the different business environments in each country and maximise their mutual advantages with appropriate strategies.