SEA’s E-commerce Market to Reach US$400B by 2031: Xendit Report

The forecast for Southeast Asia's e-commerce market to double by 2031 suggests a substantial shift in consumer habits, moving away from traditional cash-on-delivery methods. However, the report highlights that this transition is not uniform, with each market developing distinct payment preferences. This fragmentation means merchants face a complex challenge in adapting their checkout processes to avoid lost sales.

The report's findings on payment preferences reveal a nuanced regional landscape. While Singapore leans heavily on cards, Indonesia favors e-wallets, and Thailand relies on account-to-account transfers. The rise of specific local payment rails, such as VietQR in Vietnam, further emphasizes this divergence. For businesses, this implies that a one-size-fits-all payment strategy is increasingly inadequate and could lead to significant checkout friction.

Businesses are aware of this challenge, with 92% recognizing the importance of diverse payment methods, yet only 12% feel their current infrastructure is prepared for the coming decade. Concerns about acceptance costs and the slow rollout of local payment methods in new markets suggest a gap between strategic intent and operational readiness. The projected increase in fraud concerns and the emergence of AI agents making purchases by 2027 add further layers of complexity to future payment infrastructure requirements.