Within just two years, the Global Payment Summit has built a remarkable reach, with 200 delegates joining from 27 nations. The strength of this event continues to be the exchange of information within the ecommerce and payments industry, with a focus on Asia. It brought together companies such as McKinsey, PayPal, American Express, Standard Chartered Bank, goSwiff, IBM, Vocalink, Swift, World Bank, Yandex.Money, Citibank, Kapronasia, and Veritrans Indonesia to share their research and business challenges.
There is an economic shift happening from the West to the East; in absolute number of online buyers, Asia represents the largest market, though spending is higher in the West (source: McKinsey). The Asia Pacific region encompasses 600 million people between China and India. This region creates one third of the total global ecommerce volume (which is ~ $1 trillion), and there is no one-size-fits-all concept. Therefore, I believe that the ecommerce industry in the Asia Pacific region needs to grow. There are still concerns about trust, significance and convenience, and this cannot be done by one company, one person, one regulator, one country; it has to be addressed across the region and at industry level.
As Payvision’s VP Business Development for the APAC region and partner to the Cross-Border eCommerce Community, I was invited to speak about cross-border shopping in a borderless ecommerce world. In line with CBEC’s mission to educate the payments industry by sharing knowledge and expertise, I shared with the participants some key aspects of the remarkable growth trend in cross-border ecommerce in the Asia Pacific region, using China and ASEAN (the Association of Southeast Asian Nations) as case studies. First, I elaborated on the background of China’s 4E’s Economics, E-Demography, E-Payment, E-Tailing (E-Shopping), with a closer look into the issues and concerns of Chinese consumers about cross-border online shopping, and into the key development trends and actions to be taken by the industry. To learn more about this giant market with great promise for cross-border ecommerce opportunities, download the facts & figures in the online shopping infographic for China.
Additionally, I referred to ASEAN’s high double to triple-digit growth, both domestic and cross-border, and the speed at which this region is catching up on ecommerce growth. Indonesia, for instance, is a fast growing ecommerce market, with a population of 248 million and an internet penetration rate of ~55%, only a small fragment of which are ecommerce users. Veritrans Indonesia stressed the importance of growing the proportion of ecommerce users and the need to educate consumers, merchants, payments providers and regulatory bodies, in order to support faster development of the Indonesian ecommerce market.
In terms of advice for payment service providers, they need to know how the Asian markets evolve, as many of the markets in Asia have leapfrogged and avoided the legacy issues existent in Europe for instance. Profitable cross-border ecommerce will be ignited only by a collaborative space and by the possibility of cooperating and competing, at the same time. The winners will be those who have much better technology, who understand and analyze data much better and who have good quality supply chain features.
If you are interested in reading the full presentation I had during Global Payment Summit, please email me at J.Koh@payvision.com.