AMZ123 has learned that Southeast Asian consumers are accelerating their move away from cash on delivery. A report jointly released by payment company Xendit and e-commerce data firm Cube shows that cash on delivery accounted for about half of local e-commerce transaction value in 2019, but has now dropped to less than one-third. The report notes that in six major markets, between 27% and 45% of consumers said their use of cash on delivery has fallen significantly compared with a year ago, and the method is expected to fall below 25% of regional e-commerce transaction value by 2027.

Alternative payment methods differ notably across countries. In Indonesia, about 70% of shoppers use e-wallets as their primary payment method, while in Thailand more than 60% of consumers prefer direct bank transfers to complete transactions. Digital payment penetration in Malaysia has exceeded 80%, VietQR transaction value in Vietnam grew 151% last year, and Singapore still relies mainly on bank cards, which account for about 60%.

The report also shows that 51% of consumers in Indonesia have abandoned a purchase because the required payment method was missing at checkout, compared with 41% in the Philippines and 31% in Malaysia.

SellerHome Review

The shift from cash on delivery to digital payments in Southeast Asia is now inevitable, but divergence among the six countries is significant. Sellers should quickly integrate mainstream local payment methods for each site, such as e-wallets in Indonesia, bank transfers in Thailand, and VietQR in Vietnam; otherwise, they risk losing more than half of Indonesian buyers due to missing payment options.

Source: AMZ123
Original link: https://www.amz123.com/kx/9dcmQgPr