Mobile wallets are now the payment method of choice across Southeast Asia, with 83% of Indonesian shoppers and 80% of Malaysians opting for them when making international purchases.
A recent study commissioned by Airwallex in partnership with Statista revealed that in Southeast Asia (SEA), digital wallets are the clear favourite for cross-border shopping. Namely, 83% of Indonesian shoppers and 80% of Malaysians use wallets (Touch ’n Go eWallet, Apple Pay, Google Pay, etc.) for international purchases.
Wallets far outpace bank transfers (used by 53% in Malaysia and 64% in Indonesia), BNPL (52%), debit cards (48%), and credit cards (36%) in Malaysia. Shoppers in Malaysia and Indonesia also often opt for bank transfers, which are used by 53% and 64% respectively.
Singapore seemingly strays from the regional trends, as 71% of shoppers in the country still prefer credit cards. However, the closer scrutiny reveals a different story when it comes to younger cohorts. Thus, Gen Z and Millennials favour digital payments (63%) and debit cards (63%) over credit (48%), signalling a fast-moving generational shift.
Worldwide, digital wallets are also the top choice ( 59% ), followed by credit cards (53%) and debit cards (33%). That means SEA isn’t an exception from the rule but a leading indicator of how quickly consumers adopt wallet-first behaviour. Although select Asian countries have been pioneering digital wallet use, it is now actively spreading across other markets.
Another notable payment trend in SEA is flexibility. Buy now, pay later (BNPL) has become the region’s go-to tool for both domestic and international purchases. Offering BNPL at checkout is something shoppers in the region expect, especially for fashion, electronics, and home goods categories.
About 71% of Gen Z and Millennials say BNPL prompts them to buy things they otherwise wouldn’t, and 61% of that cohort would take their business elsewhere if BNPL weren’t offered at checkout.
Besides, the BNPL method is viewed as essential for cross-border shopping by 88% of Malaysian shoppers and 95% of Indonesian shoppers, while 62% of Gen Z and Millennials in Singapore prefer BNPL over all other payment options.
