It is anticipated that the Southeast Asia, South Korea, and Japan (SEAKJ) digital economy will grow from US$501.7 billion ($688.36 billion) in 2022 to US$914.9 billion in 2027, a 82% leap in five years.
This growth will be supported by a 100% expansion in the e-commerce market, driven by BNPL (38%), mobile wallet (18.9%), domestic payment (16.9%) and credit cards (14.4%).
On the backing of this, the public and private sectors are expected to inject US$232.4 billion in cross-border revenue into the SEAKJ economies during this same time frame, driven by e-commerce and tourism spending gains.
Finally, cross-border e-commerce revenue is primed to grow by a striking 70% to US$148.1 billion by 2027, faster than the growth of domestic e-commerce revenue. The offline tourism in SEAKJ is projected to grow by 334% by 2027, contributing US$171.4 billion to the region's economy.
See also: Visa and Global Payments launch mobile tap payments in Singapore
Douglas Feagin, senior vice-president of Ant Group and head of Alipay+ cross-border mobile payment services, says: "The rapid rise in the number and diversity of digital payment options present a challenge, especially for small to mid-sized merchants. By working with our partners to enable them to easily accept many different payment options through one easy-to-use interface, we have seen very encouraging results. This has been particularly important with the ongoing increase in online consumption and resumption of cross-border travel. From global online platforms to small street side merchants, it is now imperative for businesses to cater to these digital habits, and I believe that by working together, we can help more consumers and businesses benefit from digitalisation."
Aung Kyaw Moe, founder and CEO of 2C2P, adds: "Our mission at 2C2P is to empower businesses to navigate and thrive in the ever-evolving payment landscape in Asia. We hope the findings of this report encourage businesses to unlock the immense potential of Asia's digital economies by tapping on existing public- and private-sector initiatives and tools. Through our comprehensive payment solutions, we stand ready to partner with businesses to seize the exciting opportunities that lie within and across the region."
