Businesses that accept payments in Asia Pacific (APAC) can benefit from the region’s growing markets for digital payments and ecommerce. Asia’s digital payment market is projected to generate $3.99 trillion in transaction value in 2025 and then $8.63 trillion by 2030. To successfully tap into these markets, businesses must understand customers’ diverse payment preferences and the infrastructure challenges in this region.

Below, we’ll explain what businesses that want to begin accepting payments in APAC should consider, including:

• Accepting multiple digital payment options
  
• Fine-tuning for mobile
  
• Prioritizing payment fraud prevention
  

The state of the market

Technological advancements and changing consumer preferences are transforming the APAC payment market. With the proliferation of smartphones and high internet penetration, digital payment methods such as digital wallets dominate the market. But cash remains deeply ingrained because access to banking services remains inconsistent. For example, in Cambodia, as much as 46% of Cambodia’s adult population was unbanked in 2021.

Governments in the region have promoted digital transactions through plans to strengthen infrastructure, reduce barriers, and eliminate coins from point-of-sale (POS) transactions. But the market is highly fragmented, with varying levels of infrastructure, fraud risks, and regulatory environments from country to country. Despite these challenges, the overall digital payment market is growing as more customers and businesses embrace the convenience and efficiency of digital payment solutions.

Payment methods

From digital wallets to debit cards, here are the common payment methods in this market for both in-person and online transactions.

Current usage

Although cash remains prevalent for POS transactions in countries such as Vietnam and Thailand, digital payment methods have surpassed cash in the region as a whole. Digital wallets accounted for almost 75% of ecommerce transactions in APAC in 2024, and the card market continues to grow. Debit cards are less popular than credit cards, but they are still used for many kinds of purchases.

Global digital wallets like Apple Pay and Google Pay exist in APAC countries alongside local wallets including GrabPay, Touch ’n Go eWallet, and Boost Wallet. UnionPay, Visa, and Mastercard credit and debit cards are common choices for in-person and online payments.

Popular B2C payment methods in APAC

• Digital wallets
  
• Credit cards
  
• Debit cards
  
• Buy now, pay later (BNPL)
  

Popular B2B payment methods in APAC

• Credit cards
  
• Bank transfers
  
• Wire transfers
  

Emerging trends

In 2023, BNPL payments accounted for 4.4% of ecommerce payments in the APAC region and are expected to constitute 5.4% in 2024. BNPL solutions already have a foothold in Australia and New Zealand and are gaining traction in countries such as Malaysia, where the market is projected to grow from $2.52 billion in 2025 to $4.22 billion by 2030. Providers like Atome and Grab PayLater allow customers to make installment payments.

A lack of accessible banking services in Southeast Asia makes cryptocurrency particularly attractive to customers in this area. In the 2023 Global Crypto Adoption Index, Vietnam ranked third, the Philippines ranked sixth, and Indonesia ranked seventh in the world for cryptocurrency adoption.

Ease and friction of entry

Payment regulations differ across Asia Pacific. Here’s what businesses should know about taxes, chargebacks, cross-border payments, and payment security.

Taxes

Tax formats vary throughout the APAC region, with value-added tax (VAT) rates ranging from 5% in Taiwan to 15% in Fiji. Japan has a 10% consumption tax, and New Zealand and Australia have goods and services tax (GST) rates of 15% and 10% respectively.

Chargebacks and disputes

Consumer protection laws generally require financial institutions and businesses to bear the burden of proof in the event of a dispute. Card networks, banks, and financial institutions lead the chargeback process, and the business is notified when a customer disputes a transaction. The transaction funds are usually held temporarily while the business is given an opportunity to provide evidence that the payment was authentic.

International payments

Businesses that plan to accept international payments should consider the following factors.

• Currency conversion
  Because there’s no unified currency in APAC, currency conversion is a must for businesses that accept payments from more than one country. For business customers, financial institutions typically increase the baseline rate for currency conversion at which banks lend to each other. Payment processors such as Stripe can automatically handle currency conversion, reducing the steps required to complete an international transaction.

• Multicurrency features
  Businesses that cater to international clients or operate online often incorporate multicurrency features into their payment gateways. These systems automatically detect a customer’s location and present prices in the local currency.

• Legal and regulatory compliance
  Regulations for accepting international payments differ across countries and are subject to change as digital transactions develop. Stay up-to-date and ensure your business complies with all local laws regarding cross-border transactions and currency conversion.

Security and privacy

The regulatory systems of APAC countries reflect a commitment to a secure, transparent financial environment, which builds trust among customers and businesses. Here’s a rundown of important security and privacy guidelines.

• Data protection laws
  Many APAC countries have legislation that governs the processing of personal data in commercial transactions, such as Singapore’s Personal Data Protection Act. Businesses must obtain explicit consent from individuals before they collect, process, or transfer their personal data.

• Electronic transaction guidelines
  Legislation on electronic transactions has legitimized ecommerce and digital payments in the region. Laws such as Thailand’s Electronic Transactions Act of 2001 oversee electronic transaction development and promote public confidence.

• Anti-Money Laundering (AML) regulations
  In line with international standards, legislation for AML and Countering the Financing of Terrorism (CFT) mandates that financial institutions establish customer identification procedures, retain transaction records, and report suspicious transactions to the authorities.

• PCI DSS standards
  Payment Card Industry Data Security Standard (PCI DSS) compliance, which is required for businesses and payments platforms that accept credit card transactions, guarantees that cardholder data is stored, processed, and transmitted safely.

Key success factors

While Asia Pacific has a growing digital payment market, the region still presents challenges for businesses, driven by the limits of APAC’s technological infrastructure and local consumer preferences. Here are tactics businesses can implement to address these issues and successfully expand into APAC.

• Diverse digital payments
  Credit and debit cards, digital wallets, and BNPL payments are popular in APAC countries, and businesses that accept all of these options have the best chance of attracting customers who prefer to use just one payment method.

• Intuitive mobile experiences
  Mobile commerce sales amounted to over half of all ecommerce in APAC countries in 2022, excluding Japan. Updating your business’s website and payment pages to work well on mobile devices, as well as speeding up the checkout process through one-page checkout, can improve your mobile commerce performance.

• Adaptable infrastructure
  The APAC payment system presents infrastructure challenges that can hinder financial transactions, including spotty internet connectivity outside of major cities. Choosing reliable payment software and hardware that offers solutions such as the ability to collect card payments offline can prevent lost sales due to connectivity issues.

• Upgraded fraud prevention measures
  A 2023 LexisNexis report found that 52% of APAC organizations reported a rise in fraud over a 12-month period, with 34% of this fraud traced back to modern payment methods such as digital wallets and payment apps. Businesses should have systems in place that authenticate customer identities and protect cardholder data to detect and prevent fraud.

Key takeaways

The APAC payment scene reflects the region’s diverse population, preference for mobile payments, and enduring payment security challenges. Shaping your business’s plans around these factors can mean a smoother transition into the APAC market. Here’s a recap, along with tips for your business.

Accept multiple digital payment options

Accept digital wallets
From international wallets to local providers like GrabPay and Boost Wallet, digital wallets are a popular payment method with customers in APAC. Accept this type of digital payment both in person and online to give customers a familiar option.

Support credit and debit cards
Offer credit and debit card payments as an option at checkout for customers who don’t use digital wallets.

Embrace BNPL payments
BNPL payments provide flexibility. Supporting local providers like Grab PayLater can help you appeal to a broader customer base.

Fine-tune for mobile

Update payment pages
Adjust your website and payment pages to ensure they provide a quality experience when customers access them on their mobile devices.

Speed up the checkout process
Make the checkout process as fast as possible through one-page or one-click checkout to decrease cart abandonment and increase sales.

Offer support and feedback channels
Provide easy access to customer support to mitigate payment issues and boost customer satisfaction. Stay aware of consumer preferences by monitoring feedback.

Prioritize payment fraud prevention

Protect online payments
Employ 3D Secure authentication and AI fraud detection tools to mitigate ecommerce payment fraud as much as possible.

Shield customer data at every stage
Keep customer payment data safe to build trust in your company and help your business avoid financial and reputational damage. Comply with local data protection regulations and PCI DSS.

Choose secure payment software
The payment software your business uses can determine the overall security of your payment system. Choose a payment gateway that uses end-to-end encryption and complies with PCI DSS standards.