The Asia Pacific region is leading the charge in digital commerce, becoming the world’s largest and fastest-growing digital economy. Payments innovation here is thriving, but the landscape remains complex and fragmented.
From global payment giants like Alipay+ and Apple Pay to local favorites like Thailand’s PromptPay, the region has hundreds of alternative payment methods (APMs)—each crucial for merchants looking to succeed in the region’s diverse markets.
Let's tour the region to discover more about the popular payment methods in Asia Pacific and how to leverage them to enhance the customer experience and boost sales.
Ready to simplify adding alternative payment methods in APAC? Integrate with Primer and start optimizing your payment strategy. Book a call with our experts.
What are alternative payment methods?
Alternative payment methods include any payment options that aren’t traditional credit or debit card transactions or cash payments.
Examples of alternative payment methods include:
- Account-to-account (A2A) payments like PayNow and PromptPay.
- Buy Now Pay Later (BNPL) services such as Atome.
- Cash-based electronic payments, like Alfamart.
- Digital wallets like Alipay+, OVO, GrabPay, and WeChatPay.
- Domestic card schemes, notably UnionPay.
- Mobile wallets like Apple Pay and Google Pay.
The evolution of payment methods in APAC
Asia Pacific is a region of incredible diversity, where emerging economies coexist with global economic leaders. It blends emerging economies with global financial powerhouses, featuring densely populated urban centers and isolated rural communities. The region also has various languages, currencies, and cultures.
In a nutshell, Asia Pacific is anything but homogeneous.
However, one striking aspect that has become uniform across the region in recent years is its thriving digital economy. Fueled by multiple factors, including the growth of the middle class, increased mobile internet access, government initiatives, and the impact of the pandemic, among others, APAC has evolved into a breeding ground for innovation in online commerce and payments.
As a result, the way consumers pay in APAC has significantly transformed over recent years. Where cash once ruled, digital payments now reign supreme.
What are the most popular alternative payment methods in Asia-Pacific?
The fragmented nature of APAC's payment landscape requires merchants to conduct thorough research on individual markets. This enables them to pinpoint the most suitable payment options for their checkout process.
Let's explore individual markets in APAC to learn more.
Payment methods in China
The rapid adoption of digital wallets and QR codes over the last decade has enabled these payment methods to dominate the Chinese payment market. In 2023, China had the highest transaction value in the world.
Alipay and WeChat Pay are the most popular digital payment platforms in China. Nine out of ten Chinese online consumers have used them in the last 12 months.
China's domestic card scheme, UnionPay, is also very popular. As of 2023, UnionPay accounted for 93% of overall card spending.
Payment methods in Hong Kong
Card penetration is significant in Hong Kong. According to a 2023 report by GlobalData, alternative payment methods, including digital wallets like Alipay and WeChat Pay, accounted for 41.7% of e-commerce transactions. Payment cards followed closely, representing 38.6% of the market share, highlighting the diverse payment preferences in the region.
Payment methods in India
The widespread use of smartphones and internet access is fueling a significant rise in digital payments across India.
Some of India's most popular payment methods include mobile wallets, QR codes, cards from providers like VISA, Mastercard, and RuPay, and real-time payments. Buy Now, Pay Later (BNPL) options are also gaining traction. Indian consumers are embracing the convenience of real-time payments through the country's Unified Payments Interface (UPI).
Payment methods in Japan
Japan, long known as a cash-centric society, is experiencing a notable shift toward digital payments. According to GlobalData, payment cards were the preferred method for online purchases in 2023, accounting for approximately 63% of ecommerce payments. Credit and debit cards held a dominant share of 60.8%.
Alternative payment methods are gaining ground, representing 28% of online transactions. Among these, PayPay is the preferred choice, while international platforms like PayPal and Amazon Pay are expanding their influence.
Despite the increasing adoption of digital wallets and QR code payments, cash-based methods like Konbini (convenience store payments) and pay-on-delivery continue to be utilized. However, their market share has declined compared to previous years.
Payment methods in Malaysia
In 2023, account-to-account (A2A) transfers were Malaysia's most commonly used e-commerce payment method, representing 39% of all e-commerce payments. Digital wallets accounted for 24% of all ecommerce payments, with well-known names such as Touch' n Go and GrabPay dominating the market.
Payment methods in Singapore
Digital payments are becoming increasingly widespread in Singapore as the Government promotes financial inclusion.
In a 2023 survey, 40.1% of consumers preferred to use payment cards for online shopping. Alternative payment methods are gaining traction and collectively account for 38.6% of all ecommerce transactions. Mobile wallets such as Apple Pay, PayPal, Google Pay, and BNPL services are fuelling this rise.
Payment methods in Thailand
According to a 2022 report, 62% of consumers used cash on delivery for online shopping. In contrast, only 8% of consumers used BNPL services.
The Bank of Thailand introduced PromptPay in 2017. Now, it's a leading alternative payment method in Thailand, facilitating fast, secure, instant transfers.
Digital wallets have also become widely popular, with mobile wallets TrueMoney and RabbitLINE Pay dominating the market with 52.6% and 24.7% respectively.
Interested in learning about alternative payment methods in other regions?
- Learn about alternative payment methods in Europe.
- Learn more about alternative payment methods in the US.
- Learn about alternative payment methods in the Middle East and North Africa.
Why offer alternative payment methods in APAC?
Today's fiercely competitive ecommerce market requires online merchants to localize their payment options and offer alternative payment methods.
This is especially true in APAC, where cart abandonment rates chart at 82%, according to Hotjar.
From a strategic standpoint, embracing alternative payment methods such as digital wallets, mobile payments, and even cryptocurrencies can offer merchants a competitive edge. Let's explore some critical reasons for providing these alternative payment options:
Meeting customers' expectations
As APAC’s purchasing power grows and Gen Z continues to shape digital-first buying behaviors, customer expectations for frictionless, personalized checkout experiences are higher than ever. Offering payment methods tailored to specific markets is critical for reducing abandonment rates, boosting conversions, and building long-term customer loyalty.
Elevating user experience
A localized and seamless user experience doesn’t just close sales—it strengthens your brand. Merchants who conduct market research and adapt payment offerings to align with the unique needs and preferences of APAC’s diverse countries and regions stand to foster trust, loyalty, and an expanded customer base.
Enhancing security
APMs often have advanced security features, such as tokenization, biometric authentication, and fraud monitoring. These features help safeguard customer data, mitigate fraud, and reduce costly chargebacks, creating peace of mind for merchants and shoppers.
Expand market reach
Alternative payment methods are a gateway to new customer segments. In APAC, where traditional banking infrastructure may be underdeveloped in certain areas, APMs enable merchants to tap into previously underserved or unbanked populations. This inclusivity can unlock significant growth opportunities.
Staying competitive
As regional competitors embrace APMs, failing to offer them can quickly disadvantage a merchant. Many global and local businesses are racing to adopt customer-preferred payment methods, so staying ahead requires an agile, customer-centric payment strategy.
Learn more about why multiple payment methods are a game-changer for your business.
How Primer helps businesses unlock new payment methods in APAC
Offering a diverse range of payment methods allows shoppers to choose their preferred way to pay. However, integrating and managing multiple payment methods comes with its challenges. This is where Primer can help.
Primer is a unified payments infrastructure that enables businesses to accept, optimize, and manage online payments across multiple services through a single API integration. By removing technical complexities, Primer allows you to scale quickly and unlock growth opportunities without the resource limitations of traditional payment technology.
With Primer, adding new payment methods is fast and hassle-free. You can integrate alternative payment options across APAC in a fraction of the time it would take to build those integrations in-house.
Payment integrations are pre-built and ready to use, meaning you don’t need to spend weeks building custom solutions or managing individual provider connections. This streamlined approach ensures businesses can quickly roll out new options like Alipay, WeChat Pay, or GrabPay to meet the preferences of APAC customers without consuming significant development resources.
Here’s how Primer can help you add and manage alternative payment methods in APAC:
Manage payment methods in your checkout in seconds
Primer’s Universal Checkout empowers you to quickly adapt your checkout experience to local payment preferences without technical expertise, enabling you to tap into new markets and improve your bottom line. You can use it in two ways:
- Drop-in Universal Checkout: Get up and running with a fully functional, in-context checkout interface with just a few lines of code. Your team can instantly enable or disable payment methods as needed.
- Headless Checkout: Need more control? Primer’s headless solution lets you build a custom checkout flow using its powerful SDKs and APIs. This option is ideal for businesses testing layouts or experimenting with A/B flows to optimize conversions, as it allows changes to be implemented instantly.
Whether you prefer the no-code simplicity of Drop-in Checkout or the advanced customization of Headless Checkout, Primer’s solution ensures your APAC checkouts remain adaptable to the latest payment trends, giving you an edge in a dynamic market.
Centralize your payment data with Observability
Adding new payment methods is one thing, but tracking their impact is another challenge. Typically, you’d need to navigate multiple dashboards, interpret different formats, and compile reports manually—a time-consuming and error-prone process.
Primer’s Observability dashboard eliminates this complexity by consolidating all your payment data into a single, unified platform. With over 100 visualizations and 30+ filters, it provides everything you need to measure performance and make informed decisions, all in one place.
For example, you can easily compare the performance of your alternative payment methods. Let’s say you’ve recently added WeChat Pay and Alipay to your APAC checkouts. Observability lets you directly compare how these alternative payment methods perform against each other or traditional options like credit cards.
You can examine key metrics such as transaction volume, approval rates, and revenue contribution to identify which methods resonate most with your audience. This level of visibility enables you to fine-tune your payment strategy to improve regional performance and customer satisfaction.
Stay informed on payment performance with Monitors
Primer Monitors help keep you informed in real time. Set up custom alerts for key performance indicators, such as authorization declines or unusual transaction spikes, so your team can respond immediately to potential issues.
For example, you could set up an alert when authorization rates for a particular payment method fall below a certain threshold. You can receive these alerts by email, webhooks, or Slack.
These are just a few examples of how Primer can transform your payments.
You can also:
- Harness network tokenization to boost authorization rates by up to 4% while cutting fraud by as much as 30%.
- Use Primer 3DS to build bespoke authentication strategies that allow you to optimize for risk mitigation and customer conversion.
- Use smart payment routing to lower costs and maximize transaction success.
- As a PCI DSS-compliant provider, Primer takes care of your payment data security, so you don’t have to worry about managing PCI compliance.
- Integrate with advanced fraud detection tools to identify and prevent risky transactions instantly.
- Work with our expert team to refine your payment strategy and meet your business goals.
How Pelago used Primer to add and manage alternative payment methods
Pelago, a travel experiences platform by Singapore Airlines, connects travelers to activities across 150+ countries, from iconic landmarks to unique, offbeat adventures. As Pelago expanded its reach in APAC, it faced a familiar challenge: integrating alternative payment methods (APMs) to meet the diverse preferences of its customers across the region.
Adding APMs traditionally involved complex, time-consuming processes that drained resources. But with Primer, Pelago transformed its approach to payments. Integrating local payment options like PayNow in Singapore became effortless, allowing the company to offer trusted, region-specific methods that resonated with its customers. This improved the checkout experience and boosted conversion rates by aligning payment options with traveler preferences.
Once APMs were in place, managing them was equally straightforward, thanks to Primer’s Universal Checkout. This dynamic, adaptable interface brought all payment options together in one centralized flow, enabling Pelago to customize the checkout experience for different regions. Customers in Singapore, for instance, saw PayNow prioritized, while other regions displayed relevant local options—all without additional technical effort.
“We care about the checkout conversion rate,” said Altaf Dhamani, Chief Product Officer at Pelago. “Primer’s Universal Checkout allows us to dynamically adapt to customer preferences, balancing conversion rates, payment costs, and regional needs. This flexibility has been a game-changer as we scale across APAC and beyond.”
By partnering with Primer, Pelago turned payments into a growth enabler. With the ability to effortlessly add and manage APMs, the company continues to deliver localized, exceptional experiences for travelers worldwide while seamlessly scaling its operations.
Choose Primer to effortlessly add alternative payment methods
APAC's payment landscape continues evolving, with consumers embracing alternative payment methods for convenience, speed, and security. Merchants who choose the right tools —like Primer— can take advantage of the region's opportunities.
Discover how Primer enables new payment methods in under one week, allowing your business to scale quickly. You can also book a call with our expert team to discuss this.
