Southeast Asia’s e-commerce industry is poised for massive growth, with the market projected to reach US$289.8 billion by 2029, according to a new IDC study commissioned by 2C2P by Antom. The report positions Southeast Asia as the world’s second fastest-growing e-commerce market, recording a 13.2% compound annual growth rate (CAGR) from 2024 to 2029, trailing only India.
The study, titled “How Southeast Asia Buys and Pays 2026: Unlocking SMEs’ Potential,” highlights the accelerating adoption of digital payments across the region. By 2029, digital payments are expected to account for 97% of all e-commerce transactions, up from 89% in 2024.
Among the fastest-growing payment methods are domestic payments such as real-time bank transfers and local bank-based schemes, projected to grow 104% from US$45.1 billion in 2024 to US$92 billion in 2029. Mobile wallets are also expected to surge by 107%, reaching US$79 billion, while Buy Now Pay Later (BNPL) services are forecast to grow by 174% to US$18.9 billion.
The report noted that these alternative payment methods are becoming increasingly critical in Southeast Asia, where 56% of the population remains uncarded, helping bridge gaps in banking access and financial infrastructure.
The study also examined the role of small and medium enterprises (SMEs), revealing that SMEs are expected to contribute 58% of Southeast Asia’s e-commerce market by 2029. However, many businesses continue to face digitalization challenges, including integration complexity, fraud concerns, high transaction fees, and infrastructure limitations.
Surveying 600 SMEs across Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam, IDC found that 66% of SMEs already sell online, while 63% said their payment systems require upgrades to support emerging digital payment trends.
Cross-border expansion is also becoming a priority, with three-quarters of SMEs planning to expand internationally within the next two years. IDC estimates that broader SME participation in cross-border e-commerce could generate an additional US$20.8 billion in regional sales by 2029.
Worachat Luxkanalode, Group CEO of 2C2P by Antom, emphasized the importance of simplifying digital payments for businesses navigating Southeast Asia’s fragmented payment ecosystem. He said enterprise-grade payment platforms can help SMEs streamline operations, support local payment preferences, and scale across borders more effectively.
