THE COVID-19 pandemic has sped up Southeast Asia’s transition towards a cashless society while e-commerce continue to witness growth as consumers explore new shopping channels during the pandemic.
The data is shown in the latest Visa Consumer Payment Attitudes Study, which further noted that 93% of consumers use an array of cashless payment methods including cards, contactless cards and mobile contactless, mobile wallets as well as QR code payments in the region.
“This is led by consumers in Singapore (97%), followed by Malaysia (96%), Indonesia (95%) and Vietnam (95%),” the study stated.
“However, an increasing number of consumers are opting for cashless payments in markets where cash remains dominant such as Cambodia, the Philippines and Vietnam.”
According to the report, nearly four in five Southeast Asian consumers plan to use cashless payment methods more often, especially those in Thailand (89%) and Vietnam (83%) as well as 78% each in Malaysia, Indonesia and the Philippines.
“This could be due to three in four (75%) consumers perceiving cashless methods as a safer way to pay, especially in Thailand (86%), Vietnam (80%) and the Philippines (79%),” said the study.
“As such, nearly three in four Southeast Asian consumers (72%) support their governments’ plans to develop their nations into cashless societies, and more than two in three (68%) prefer shopping at stores that accept cashless payments.”
The study further revealed that almost two in three (62%) Southeast Asian consumer shopped more frequently through apps and websites, while with the emergence of new retail options and experiences, consumers are exploring a variety of outlets for shopping as well.
“Almost half of Southeast Asian consumers (45%) shopped more frequently via proximity stores (direct delivery at home after ordering on phone) and almost two in five (39%) shopped more frequently via social media,” said the study.
“Online shopping is becoming a growing habit, with three in five consumers shopping less frequently at physical outlets compared to two in five (44%) in 2020.”
“In Southeast Asia, payments and commerce are being defined by convenient and intuitive experiences that blend across all aspects of life,” said Visa group country manager for Southeast Asia Serene Gay.
She also mentioned that the preference for cashless payments continues to grow, and nearly four in five (77%) Southeast Asian consumers plan to use cashless payments more often.
“This is driven by the widespread use of mobile wallets (52%) and contactless card payments (44%), as well as rising interest in the use of new methods such as Buy Now Pay Later (BNPL) solutions (63%),” she pointed out.
“With more ways to pay, and more places for commerce to happen, the digital economy in Southeast Asia is projected to hit US$1 tril by 2030.”
The latest Visa Consumer Payment Attitudes Study was commissioned by Visa from August to September 2021 among 6,520 consumers aged 18 to 65 years in Singapore, Malaysia, Thailand, Indonesia, the Philippines, Vietnam, and Cambodia. – June 3, 2022
