According to the Business Times Singapore, a report commissioned by payments platform 2C2P and conducted by International Data Corporation (IDC) projects that Southeast Asia’s e-commerce market will reach US$289.8 billion by 2029, with a compound annual growth rate (CAGR) of approximately 13.2% during the 2024–2029 period. This would make Southeast Asia the world’s second fastest-growing e-commerce market, behind only India.

Source: VNTR

A key driver of this growth is the rapid adoption of digital payments across the region. The report forecasts that digital payments will account for 97% of all e-commerce transactions in Southeast Asia by 2029, up significantly from 89% in 2024. Cards, domestic payment systems, and e-wallets are expected to remain the three dominant payment methods.

Notably, domestic payments, including real-time payments and local bank transfer systems, are projected to nearly double from US$45.1 billion in 2024 to US$92 billion by 2029. This segment is expected to become the largest contributor to the region’s digital payment ecosystem, surpassing card payments. Meanwhile, e-wallet transactions are forecast to rise from US$38.2 billion to US$79 billion over the same period, increasing their market share from 24% to 27%.

The report also highlights the growing role of small and medium-sized enterprises (SMEs) in Southeast Asia’s digital economy. SMEs are expected to contribute 58% of the region’s total e-commerce value by 2029, up slightly from the current 57%. Greater participation of SMEs in cross-border e-commerce could generate an additional US$20.8 billion in revenue, equivalent to a 7.1% increase.

However, uneven digital transformation remains a key challenge. IDC notes that limited digital payment capabilities, data security concerns, and difficulties in system integration continue to prevent many SMEs from fully capitalizing on e-commerce growth. Even in Singapore, one of the region’s most advanced markets, around one-third of SMEs still rely heavily on cash for daily operations.

2C2P is an full-suite payments platform headquartered in Singapore, with a presence across key Asian markets including Thailand, Singapore, and Malaysia. The company provides payment acceptance, issuing, and settlement services, as well as other value-added solutions and services for merchants across sectors such as e-commerce, financial services, aviation, travel, hospitality, and retail.

Source: Compiled by the Multilateral Trade Policy Department, Ministry of Industry and Trade of Viet Nam