Southeast Asia’s E-Commerce Boom to Exceed US$300 Billion by 2028: IDC

Southeast Asia’s e-commerce market is on track to reach US$325 billion by 2028, driven by rapid digital payment adoption and increasing regional interoperability. A recent report by market intelligence firm IDC, commissioned by global payments platform 2C2P and Antom, highlights how these developments are unlocking new opportunities in cross-border commerce for businesses.

The 2025 edition of “How Southeast Asia Buys and Pays” marks the fourth instalment of the IDC InfoBrief series since 2021. Surveying 600 respondents across six key markets—Indonesia, the Philippines, Malaysia, Singapore, Thailand, and Vietnam—the report provides a comprehensive analysis of the region’s digital payments landscape, its evolving consumer behaviours, and the impact on business strategies.

As the world’s fifth-largest economy, Southeast Asia’s rapid growth is largely propelled by the expansion of e-commerce, supported by increasing adoption of digital payments.

By 2028, digital payments are expected to account for 94% of total e-commerce transactions in the region, with domestic payments (97.9%) and mobile wallets (94.9%) playing a crucial role in widening e-commerce accessibility.

Real-time payments (RTPs) are also set to experience exponential growth, surpassing US$11 trillion. Singapore is already leading the way, with PayNow ranking as the third most supported payment method among merchants in 2024.

Governments across Southeast Asia are actively promoting RTPs to reduce cash reliance and enhance financial inclusion through fast, low-cost digital transactions.

Mobile wallets and domestic payment methods continue to dominate consumer preferences. In 2023, mobile wallets were the top payment choice in Indonesia, Malaysia, and Vietnam, while domestic payments led in Singapore and Thailand.

This trend persisted in 2024, with mobile wallets emerging as the second most accepted payment method in Singapore and the Philippines and the third most in Indonesia and Thailand.

Beyond domestic transactions, Southeast Asia presents significant untapped potential in cross-border e-commerce, which is projected to reach US$14.6 billion by 2028—an increase of 2.8 times from 2023.

With the exception of Vietnam and Indonesia, cross-border transaction values per customer surpass domestic transactions across most Southeast Asian markets, underscoring the lucrative opportunities for businesses expanding beyond their home countries.

The development of Regional Payment Connectivity (RPC), a collaboration involving all six markets, aims to streamline inter-country transactions, making cross-border payments more seamless, efficient, and cost-effective.

For businesses already engaged in cross-border trade, the financial returns are clear. According to the report, 62% of surveyed Southeast Asian merchants conducting cross-border transactions saw an average transaction value 21% higher than domestic sales.

However, intra-Southeast Asian trade remains underutilised, accounting for only a small fraction of total cross-border commerce. To capitalise on this growth, businesses must gain a deeper understanding of each market’s regulatory and operational environment while leveraging shared regional advantages.

Agnes Chua, Managing Director of Business and Product Development at 2C2P, emphasised the transformative shift in Southeast Asia’s e-commerce landscape. “Merchants recognise the immense opportunities in driving e-commerce revenue but also acknowledge the increasing complexity of operations, from customer support to payment gateway integration.

“At 2C2P, we empower businesses to navigate these challenges by delivering payment solutions that simplify operations, enhance cross-border capabilities, and drive growth in Southeast Asia’s dynamic digital economy.”

Gary Liu, General Manager of Antom, Ant International, highlighted the region’s emergence as a global hub for digital commerce. He said: “As businesses expand across borders, seamless and efficient transactions are crucial for competitiveness.

“At Antom, we see payments not just as infrastructure but as a catalyst for business growth. By collaborating with 2C2P and other partners within Ant International’s ecosystem, we equip merchants with unified payment and digitisation solutions, covering the full payment lifecycle, global account services, financing, and treasury management.

“Through close partnerships with local regulators and industry stakeholders, we are committed to unlocking new opportunities and enabling businesses of all sizes to thrive in Southeast Asia’s evolving digital economy.”