Retail in Asia

In Trends

How the right payment strategy can make or break your business

payment-retail-in-asia

Understanding local payment landscapes when entering any market is vital. Paymnets platform Adyen explores these in China and Southeast Asia.

No matter where your customers are, they come in a variety of sizes, with distinct requirements and varying aesthetic preferences. And just as your customers’ shapes and tastes differ, so do their payment preferences, especially in different markets.

SEE ALSO: 3 reasons why mobile payments are popular in China  

For example, in many countries credit cards don’t necessarily reign and providing mobile payment methods is nearly as important as providing the merchandise to buy in others.

So let’s consider two key markets for retailers going global: China and Southeast Asia.

China: The e-commerce giant

China is the biggest retail e-commerce market in the world, forecasted to reach US$1 trillion by 2020. Local shoppers are increasingly buying internationally, with a prediction of 15% of the population making cross-border e-commerce purchases by the end of this year.

Supporting local payment methods is crucial for retailers looking to capture this massive market, since credit cards are used for only a small portion of online payments. Local methods Alipay, UnionPay and WeChat Pay account for the majority of Chinese payments.

Luxury bag retailer the Cambridge Satchel Company supported Alipay for their online and mobile payments and saw conversions increase by 15%.

Southeast Asia: The next 600 million

Southeast Asia is home to over 600 million people and online retail sales are projected to grow 25% annually. The region is also experiencing a fast-growing trend of digital adoption with 250 million smartphone users.

However, Southeast Asia comprises many different countries and cultures – some are more developed than others in terms of technology.

Shoppers in Singapore tend to have more than one credit card, but those in Indonesia and Thailand mainly pay in cash. It’s important to keep these differences in mind when considering this rich market for global expansion.

To summarise, if you understand how shoppers pay in each country and optimise your payment strategy for individual markets, you will drastically improve your chances of success on a global scale.

(Source: Retail Week)