By guest author Eileen Yu for By The Way
Vietnam is the fastest-growing in mobile payments, clocking a 24 % climb from last year, with 61 % of its consumers tapping such services. Globally, China leads with 86 % of its population tapping mobile payments, followed by Thailand at 67 %
Vietnam is the fastest-growing global market in mobile payments, clocking a 24 % climb from last year, with 61 % of its consumers tapping such services. Across the globe, China leads the pack with 86 % of its population tapping mobile payments, followed by Thailand at 67 %. In fact, the world’s top 10 mobile payments adopters are in eight Asian markets including Indonesia, Singapore, and the Philippines, according to PwC’s Global Consumer Insights Survey 2019. The study polled more than 21000 respondents from 27 territories, which included six Southeast Asian markets and Australia, Canada, Germany, and the UK.
Across the globe, the average growth rate was 24 %, with 34 % of all consumers tapping mobile to pay for their purchases.
Thailand saw its adoption climb to 67 %, while Malaysia clocked a 17 % increase to 40 % this year and the Philippines marked a 14 % growth to 45 %. Indonesia recorded the slowest increase in mobile payments adoption at 9 % to hit 47 %.
Mobile payments adoption in Singapore rose to 46 % this year, up from 34 % in 2018, where its growth was in part fuelled by government efforts to drive such platforms in the country, though, the vast number of choices and legacy systems might drag down usage.
PwC’s Strategy& payments director Shirish Jain noted: “Asia remains the powerhouse in leading the customer shift to mobile payments with the report reflecting eight Asian nations in the top 10, and six are in Southeast Asia. Vietnam, with its relatively low penetration in 2018, has registered the highest growth as mobile platforms demonstrate a significant increase in convenience over traditional means of commerce.
“This contrasts with Singapore that also shows strong gains. However, the sophisticated and established traditional ecosystem, as well as abundant and potentially confusing number of choices in mobile payments can also slow down adoption,” Jain explained. “This finding highlights a timely confluence of four principal factors: stages of economic growth cycles driving affluence and disposable income; the availability of platforms that address local demographic needs including support for cash-on-delivery; the lower cost for retailers and providers; and a marked increase in convenience.”
The PwC study revealed that Asian consumers were more socially engaged online than their peers in Europe and the Americas. Thailand, Indonesia, and Vietnam led in terms of making purchases directly through social media posts via platforms such as Instagram and Facebook, with 50 %, 49 %, and 48 %, respectively, doing so.
In comparison, worldwide, just 21 % said they made purchases directly through social media channels, which were found to have the most influence in purchasing decisions related to fashion.
Charles Loh, PwC’s Southeast Asia consumer and industrial products consulting lead, said “Social media platforms are already mature in Southeast Asia. The trend in online shopping, moving forward, is the consolidation of e-commerce players with fewer big players providing that gateway. There seems to be a consolidator present in every market.”
In addition, 9 % of consumers worldwide used voice technology to shop online at least once a week.