Asia Pacific continues to lead the world in the adoption of local payment methods - new research from Boku reveals
Boku, the global network for localised payment solutions, has released a global research report entitled ?2024 Global Ecommerce Report: The Changing World of Payments'. The report reveals the increasing preference for local payment methods and the continued decline in the market share of traditional card payments.
Produced in collaboration with Juniper Research, the report surveyed 10,500 consumers and analysed data from 37 major markets across the globe to identify global, regional and country specific trends. The findings highlight significant and rapid consumer shifts in ecommerce payments away from the traditional card networks (and in emerging economies cash on delivery) towards local payment methods such as digital wallets. Account to Account (A2A) payments (instant payments and bank transfers) such as PromptPay in Thailand, PayNow in Singapore and PayTo in Australia are revealed as the fastest-growing payment method within ecommerce.
Key findings for Asia Pacific:
- Asia Pacific continues to lead the world in the adoption of local payment methods. By 2028, local payment methods within Asia Pacific will represent 69% of ecommerce transactions by value, from 64% in 2023.
- Non-card linked wallets are projected to dominate ecommerce transactions in Asia Pacific, reaching 57% by 2028 (up from 55% in 2023).
- By 2028, over 61% of all individuals within Asia Pacific will actively use local payment methods on a regular basis, reflecting their strong traction in the region.
- Account to Account (A2A) payments, such as PromptPay in Thailand and PayNow in Singapore, are flourishing and expected to rise from 4% of transaction value in 2023 to 8% in 2028.
- Market nuances play a significant role in consumer loyalty to payment methods, emphasising the need for tailored payment strategies.
Payment choice is key for consumers around the world. Today's mobile-first generations - with whom access to and affinity with card networks is low - prioritise the convenience and seamless nature of paying with digital wallets, direct carrier billing and Instant A2A payments. As with the adoption of many new technologies, the adoption of localised payment solutions by younger generations and populations is paving the way for adoption by older consumers.
Stuart Neal, CEO of Boku said, "Our research shows Asia Pacific continues to lead the world in the adoption of local payment methods. While card-linked payments remain significant, local payment methods that offer consumers seamless payment experiences, such as digital wallets, direct carrier billing and Account to Account transfers, will continue to win market share. Merchants now realise that the key to their future global growth and success lies in their ability to offer consumers more payment choice to match these changing customer preferences. At Boku, we're excited to provide the world's largest merchants with access to our global network of localised payment solutions so their customers can more easily pay for the things they love, the way they want - no matter where they are in the world."
Download the full research report: http://www.boku.com/boku-knows/2024-boku-global-ecommerce-report
Notes to editors
About Boku Inc.:
Boku helps people pay the way they want to by building a global network of localised payment solutions including digital wallets, direct carrier billing, and account to account / real-time payments schemes. Boku's global payments network now includes over 300 local payment methods worldwide, reaching over 7.5 billion consumer payment accounts in more than 90 countries. Boku works with the world's largest merchants including Amazon, Google, Spotify, Meta, Microsoft, Netflix, Spotify, Tencent and Sky, helping them to grow their businesses in every corner of the globe.
Boku Inc. was incorporated in 2008 and is headquartered in London, UK, with offices in the US, India, Brazil, China, Estonia, France, Germany, Indonesia, Japan, Singapore, Spain, Taiwan and Vietnam.
To learn more about Boku, please visit our website at www.boku.com.
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