Asia-Pacific Online Payment Methods: Second Half 2017

  • ID: 4471241
  • Report
  • Region: Asia Pacific
  • 84 pages
  • yStats GmbH & Co. KG
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Payment with Digital Wallets Spreads in Asia-Pacific Region Says Report

FEATURED COMPANIES

  • Ant financial services
  • China UnionPay
  • Line
  • Mobikwik
  • Osaifu Keitai
  • Paytm
  • MORE

“Asia-Pacific Online Payment Methods: Second Half 2017,” among other findings, points to the rapid rise in popularity of payment by digital wallets throughout the Asia-Pacific region. The publication covers the payment preferences of shoppers in 10 nations of the vast Asia-Pacific area.

Third-party online and mobile wallets are growing in popularity in China and India and spreading through other countries of the region. Research cited in the report shows that Alipay, WeChat Pay, Paytm and similar services made up nearly half of online retail payments in the Asia-Pacific region. Traditional plastic card remains the leading payment method for B2C E-Commerce in Japan, South Korea and Australia, but now accounts for only a little over 25% of online sales in the region as the electronic methods used in emerging markets shift the shares.

Digital wallets are used not only in online shopping, but also increasingly in brick and mortar stores. While cash is still the leader in all retail shopping in Asia, electronic wallets are second, and share second place with plastic for in-store shopping, according to a survey summarized in the report.

The demonetization reform of India in 2016 produced incentive for many shoppers in that county to change their payment preferences. Bank card and E-Wallets became the leading payment methods for online shoppers in India last year. The publication nevertheless reports that not all economies in the region are on the E-Wallet bandwagon: in Indonesia and Vietnam, cash on delivery and ATM transfers still are the leading payment methods in B2C E-Commerce.

Questions Answered in this Report

  • How is the digital payments landscape evolving across Asia-Pacific?
  • What were the market shares of the top payment methods in Asia-Pacific E-Commerce in 2017?
  • How do online payment method preferences vary between 10 major markets of this region?
  • What is the current state and prospects of mobile payments in Asia-Pacific?
  • What are the leading mobile wallets in the countries of this region?
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FEATURED COMPANIES

  • Ant financial services
  • China UnionPay
  • Line
  • Mobikwik
  • Osaifu Keitai
  • Paytm
  • MORE

1. Management Summary

2. Global Developments
Breakdown of E-Commerce Sales by Payment Methods, in %, 2021f
Top Two Payment Methods Preferred in Cross-Border Online Shopping, in % of Cross-Border Online Shoppers, 2016 & 2017
Penetration of Bank Account Holders Willing to Share Personal Financial Data with Third-Party Providers to Use Their Services, in %, by Selected Countries, August 2017
Share of Internet Users Who Believe That Mobile Payment is Not Secure, in %, October 2016
Mobile Payment User Penetration, in % of Internet Users, by Regions, Q4 2015 & Q2 2017
Apple Pay User Penetration Compared to Overall Mobile Payment User Penetration, in % of Internet Users, by Penetrated Markets, Q2 2017
FinTech Adoption Rate, in % of Internet Users, by Selected Countries, 2017
Most Used FinTech Services According to Internet Users, in %, 2017
Most Relevant Emerging Technologies for Large FinTech and Financial Companies to Invest In, in % of Respondents in Each Group,  April 2017
Top 10 VC-Backed FinTech Unicorns by Valuation, in USD billion, Q3 2017

3. Asia-Pacific

3.1. Regional
Breakdown of E-Commerce Sales by Payment Methods, in %, 2017e
Breakdown of General Payment Methods Used Most Frequently, in % of Consumers, August 2017
Awareness and Usage of New Payment Methods, in % of Consumers, August 2017
Rate of Adoption of New Payment Methods, in % of Consumers, by Selected Emerging Markets in Asia, August 2017
Top 3 Mobile Payment Services Used by Internet Users, by Selected Countries, incl. India, Indonesia, Philippines, South Korea and Thailand, in % of Internet Users, Q2 2017
Top 3 General Non-Cash Payment Methods Preferred by Consumers in Southeast Asia, by Country, 2017

3.2. Advanced Markets

3.2.1. Japan
Online and Mobile Payment Trends, January 2018
Payment Methods Used in E-Commerce, in % of Online Shoppers, 2016
Online Payment Services Market Revenues, in JPY billion, FY 2014 - FY 2021f
Awareness and Usage of E-Money Services and Smartphone Payment Services, in % of Smartphone Users, November 2017
Most Used Smartphone Payment Services, in % of Smartphone Payment Users, November 2017
Locations of Using Smartphone Payment, in % of Smartphone Payment Service Users, November 2017
Share of Smartphone Owners Who Have Used QR Code Payment, in %, and Share of Non-Users Who Would Like to Use It in the Future, in %, October 2017

3.2.2. South Korea
Daily Average Personal Credit Card Payment Value by Major Consumption Types, incl. Online and Home Shopping, in KRW billion, H1 2016 - H1 2017
Daily Average Value of Mobile Card Payments, in KRW billion, H1 2015 - H1 2017
Top 5 Mobile Payment Services by Payment Volume, in KRW billion, January-August 2017
Top 10 General Payment Methods Used, in % of Banked Consumers, H1 2017
Proximity Mobile Payment User Penetration, in % of Smartphone Users, 2018f

3.2.3. Australia
Breakdown of Online Payments by Payment Method, in %, 2013 & 2016
Breakdown of Online Payments by PC/Tablet and Mobile, in %, 2013 & 2016
Share of In-Person Card Payments Made via Mobile Phone, in %, 2016
E-Commerce Sales Shares of Apple Pay and Android Pay, in %, 2017e

3.3. Emerging Markets

3.3.1. China
Online and Mobile Payment Trends, January 2018
Number of Online Payment Users, in millions, and Penetration, in % of Internet Users, 2012 – 2016 & June 2017
Third-Party Online Payment Volume, in CNY trillion, by Two Comparative Estimates, Q1 2016 – Q2 2017
Breakdown of Third-Party Online Payment GMV by Players, in %, by Two Comparative Estimates, Q2 2017
Breakdown of Third-Party Online Payment GMV by Segment, in %, Q2 2017
Number of Mobile Payment Users, in millions, and Penetration, in % of Mobile Internet Users, 2014 - 2016 & June 2017
Third-Party Mobile Payment Volume, in CNY trillion, by Two Comparative Estimates, Q1 2016 – Q2 2017
Breakdown of Third-Party Mobile Payment GMV by Players, in %, by Two Comparative Estimates, Q2 2017
Breakdown of Third-Party Mobile Payment, by Type, in %, Q2 2016 – Q2 2017
Payment Methods Used for In-Store Purchases, in % of Internet Users, June 2017
Selected Mobile Payment Services Used Regularly to Make Payments, in % of Urban Consumers, 2017
Payment Transactions Processed via Offline QR Code Scanning, in CNY billion, Q1 2016 - Q1 2017
Proximity Mobile Payment Users Number, in millions, and Penetration, in % of Smartphone Users, 2016 -2021f

3.3.2. Taiwan
Payment Methods Used in E-Commerce, in % of Online Shoppers, Q4 2016

3.3.3. India
Share of Urban Online Shoppers Who Switched from Cash on Delivery to Online Payment Methods Following Demonetization, in % of Online Shoppers, 2017
Share of Urban Online Shoppers Who Introduced Family or Friends to Cashless Payment Methods After Demonetization, in %, 2017
Breakdown Payment Methods Preferred in E-Commerce, in % of Urban Online Shoppers, 2017
Payment Methods Preferred When Making Online/Mobile Payments, in % of Urban Internet Users, 2017
Share of Digital and Mobile Wallets in E-Commerce Sales, in %, 2013 & 2017e
Value of Payment Transactions by Selected Non-Cash Payment Methods, in INR billion, and Volume, in millions, incl. Mobile Wallets, FY 2014-2015 - FY 2016-2017

3.3.4. Indonesia
Top 3 Payment Methods Used in E-Commerce, in % of Internet Users, 2016
Top 10 Mobile Payment Services Used, in % of Mobile Payment Users, September 2017 

3.3.5. Singapore
Share of Cards and Digital Wallets in E-Commerce Sales, in %, 2013 & 2017e
Share of Credit Card Holders Who Used Mobile Wallets to Make Payments from Credit Card, 2016 & 2017

3.3.6. Thailand
Payment Methods Used in E-Commerce, in % of Online Shoppers, July 2017
Breakdown of Online Payment Channels Used by SMEs in E-Commerce, in %, 2016
Reasons to Choose an E-Commerce Website to Purchase From, incl. Payment-Related, in % of Online Shoppers, June 2017

3.3.7. Malaysia
Payment Methods Used in E-Commerce, in % of Online Shoppers, February 2017
Problems in E-Commerce, in % of Online Shoppers, August 2017

3.3.8. Vietnam
Payment Methods Used in E-Commerce, in % of Online Shoppers, 2015 & 2016
Factors Most Important to Online Shoppers When Buying Online, in % of Online Shoppers, 2016
Accepted Payment Methods, in % of E-Commerce Companies, 2016
Payment Providers Used, in % of E-Commerce Companies Using Payment Providers, 2016

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FEATURED COMPANIES

  • Ant financial services
  • China UnionPay
  • Line
  • Mobikwik
  • Osaifu Keitai
  • Paytm
  • MORE

Digital Wallets Dominate The Online Payment Landscape in Asia-Pacific
 
E-Wallets such as Alipay, WeChat Pay and Paytm accounted for close to one-half of ECommerce sales in Asia-Pacific in 2017, according to research findings contained in this report. These third-party online and mobile payment services have gained significant popularity in China and India, and are also growing in use across Southeast Asia. While remaining the leading online payment method in Japan, South Korea and Australia, payment cards accounted for just above one-quarter of online retail sales in the region, as the contribution from the emerging markets has grown.

Digital wallets not only dominate the E-Commerce landscape, but are also transforming the way tech-savvy consumers in Asia make payments in their daily lives. According to a recent survey cited in this report, E-Wallet was the second most frequently used payment method overall in Asia in 2017, ranking behind cash only and sharing the second place with physical payments by credit card. In China, mobile payment apps are catching up with cash payments in usage by connected consumers, with in-store payment transactions conducted via QR code scanning growing at high double-digit rates every quarter. Even in Japan, where cash still dominates overall retail payments, the potential for in-store mobile payments is high, as around one-half of smartphone owners who do not yet use QR code-based payments could imagine doing so in the future.

India has shown some interesting developments in digital payments following the 2016 demonetization. Close to one-half of online shoppers had reported switching from cash on delivery to online payment methods post-demonetization, according to a survey from 2017 cited by the researcher. As a result, bank cards and E-Wallets have become the leading online payment methods in India, with the latter seeing the highest growth rates among the non-cash payment methods in fiscal year ending March 2017. Some other emerging markets in Asia-Pacific are yet to embrace innovative payment methods, such as Indonesia and Vietnam, where ATM transfers and cash on delivery remain ahead of card and E-Wallet payments in E-Commerce.

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  • Apple
  • China UnionPay
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  • Line
  • MasterCard
  • Mobikwik
  • Naver
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  • PayPal
  • PayU
  • Paytm
  • Rakuten
  • Samsung
  • Tencent
  • True Corporation
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