Airwallex: UK Firms Must Adapt for Southeast Asian Markets
Research from Airwallex has identified payment preferences among Southeast Asian (SEA) consumers that could guide UK companies seeking expansion opportunities in the region.
The findings come as British businesses reconsider their cross-border trade strategies following shifts in global tariff structures.
Digital Payments Dominate Regional Landscape
The data indicates payment habits vary by country, with digital payment methods gaining significant traction across the region, potentially influenced by government policies supporting payment innovation and transitions toward cashless economies.
Digital payment methods such as Apple Pay, Google Pay and GrabPay are prevalent throughout Southeast Asia, with adoption rates reaching 52% in Singapore, 80% in Malaysia and 83% in Indonesia.
Singapore demonstrates a generational divide, with younger consumers preferring digital options. Generation Z and Millennial shoppers in Singapore favour digital payment methods (63%) and debit cards (63%) over credit cards (48%).
The Buy Now Pay Later (BNPL) model, which allows consumers to make purchases and pay for them at a later date through instalments, has gained substantial market share.
More than half (52%) of online shoppers in both Malaysia and Indonesia report using BNPL services for their purchases.
Ben Hornby, Director of Sales, SME and Growth at Airwallex, views this trend as an opportunity for British businesses.
“In the current economic climate, eCommerce business owners are having to make different decisions when it comes to expanding and maintaining their businesses globally. However, there is still hope for growth when looking beyond domestic markets,” he says.
Localisation Critical for Consumer Trust
The research highlights that Southeast Asian consumers expect checkout experiences tailored to their specific needs and cultural contexts.
Currency transparency emerges as a fundamental requirement, with more than 90% of shoppers across the region stating they need clear pricing in their local currency before committing to a purchase.
The same percentage also express a preference for mobile-friendly checkout pages.
The checkout flow itself proves critical for conversion rates. Approximately 60% of shoppers report frustration when redirected to another page for payment processing, a friction point that increases transaction abandonment rates.
“With a payment partner like Airwallex, businesses are able to expand into SEA's major and emerging markets - which may not have been an immediate consideration - like a local, while staying secure and compliant with local regulations”
Security considerations remain paramount in the region's online shopping environment. An overwhelming 95% of consumers rank visible security badges among the most important features of any checkout experience, indicating high awareness of potential digital fraud risks.
These findings could prove valuable for UK firms looking to diversify their international market presence. Southeast Asia represents one of the world's fastest-growing eCommerce regions, with market projections suggesting it will reach a volume of US$187.20bn by 2029.
The payment environment in Southeast Asia differs substantially from Western markets, demonstrating a more fragmented and localised structure than the relatively homogeneous payment landscapes in Europe and North America. This requires British businesses to adapt their payment infrastructure accordingly.
“With a payment partner like Airwallex, businesses are able to expand into SEA's major and emerging markets - which may not have been an immediate consideration - like a local, while staying secure and compliant with local regulations,” Ben concludes.
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