For small and medium-sized e-commerce businesses, expanding into international markets is a pivotal moment of ambition and growth. The Asia-Pacific (APAC) region, home to five of the world’s top 10 e-commerce markets, represents an unparalleled opportunity driven by rapidly growing digital economies. However, many SMBs discover that a successful domestic payment strategy is insufficient for cross-border success. This is often because a striking 77% of consumers in the region will abandon a purchase if their preferred local payment method is not available, making a localized payment infrastructure non-negotiable for converting the Asian consumer. To maximize international conversion, your payment process must be perceived as seamless, trustworthy, and tailored to local preferences.
The most formidable barrier to conversion in cross-border e-commerce is a checkout process that feels foreign. In Asia, consumer loyalty lies with trusted local payment methods (LPMs), which often dwarf the use of international credit cards. Presenting a checkout page without these options signals that your business isn’t built for them, directly leading to abandoned carts and lost revenue. In fact, a recent analysis found that retailers risk losing 44% of customers if they do not offer their preferred payment methods. Therefore, a strategic approach to payments does more than just process transactions; it builds trust, reduces friction, and directly increases your bottom line.
To compete effectively, your payment system should be built on three core pillars:
Local Payment Method (LPM) Adoption: This is the cornerstone of your strategy. Integrating the right LPMs shows customers you understand their market.
Seamless Mobile-First Experience: Asia is a mobile-first continent. Your checkout must be optimized for smartphones, with fast loading times and intuitive interfaces.
Robust Security and Fraud Management: Expanding globally increases exposure to fraud. Your system must protect your revenue without introducing excessive friction for legitimate customers.
A one-size-fits-all approach does not work in Asia. Here’s what you need to know for each region:
Japan: While credit cards are common, a large portion of the population prefers other options. Konbini (Convenience Store) payments allow customers to pay for online purchases in cash at local stores like 7-Eleven or Lawson. Digital wallets like PayPay and auPAY are also massively popular for their speed and security. For further information, please see our previous article on Konbini Payments.
South Korea: South Korea presents a paradox of a highly advanced digital economy with unique, entrenched payment preferences. While credit cards are used in over half of all online purchases, they are often facilitated through local fintech super-apps, making integration with these platforms critical.
Southeast Asia (e.g., Thailand, Indonesia, Vietnam, Philippines): In Southeast Asia, digital wallets and bank transfers are not just options—they are essential. The region’s preference for these localized payment methods is profound, with a staggering 87% of all e-commerce transactions now being digital. This has fundamentally reshaped the checkout experience for millions, making credit cards, which have relatively low penetration, a secondary payment route.
You must offer solutions like:
For a growing SMB, building direct integrations with every LPM is impractical. The most efficient and effective path is to partner with a Payment Service Provider (PSP) like Evonet, which specializes in cross-border payments.
A robust PSP acts as your single gateway to the world, offering:
At Evonet, we provide the payment infrastructure that ambitious SMBs need to scale with confidence. Our platform offers seamless access to the preferred payment methods across Asia, backed by robust security and insightful analytics.
