What are the best ways Southeast Asia can power digital payment?

Consisting of 11 countries, Southeast Asia is pushing e-commerce to a whole new level. Edging on the verge of the next “big thing”, e-commerce in Southeast Asia rapidly grows since the past few years.

With more than 250 million internet users and an estimated 142 million internet subscriptions, the region is experiencing a high rate of digital adoption and usage. According to Adyen,  the e-commerce market is still small. It accounts for less than 3% or US$6 billion of the total retail sales, compared with 14% penetration in both China and the US, with online sales of $293 billion and $270 billion.

Despite the fact that the market is small, the potential is tremendous. However before this potential can be accomplished, Southeast Asia e-commerce must first tackle the digital payments issues. Payment services, securities and payment methods are among the things that need to be enhanced and upgraded in order to move forward.

Improving customer experience is one of the ways that can power digital payments to move forward. Most customers are required to go through so many interface before they can make the payment. One interface after another and in the off chance that customer already on their existing account, the still have to make provide login credentials again to make a transaction. This not only prolong the process but also making customers lose patient. Simpler interface and user-friendly are needed. Simple yet secured and also easy to use will improve customers – merchant relationship and encouraging digital payment usage.

More users means more customers, while more customers means more payment methods are demanded. By addressing the demand, the availability of quick and easy-to-use payment solutions for both merchants and customers are necessary. Providing more payment options such as apps, digital wallet and mobile payment can help sustain while powering digital payments of Southeast Asia. However, there are parts of Southeast Asia such as Indonesia and Singapore that still prefer to use safer payment option for example cash-on-delivery or credit/debit cards.

Today, security issues are threatening the digital payment world. It constantly evolves, upgrades and countering the digital payment system. One of the threats are viruses. Viruses like Trojan and Worm in which developed specifically to steal data and exploiting the weakness of security system of the company are ruining and endangering digital payment system.

Recent developments in e-payment has led to the creation of new kind of attacks. Intrusive methods that have a high degree of aggression are more and more used. An effective and innovative authentication program should be developed to ensure that the safety of customer’s details are secured. Methods such as cryptographic key, digital signature and biometric signature should be introduced.

As Southeast Asia’s e-commerce are moving forward, digital payment must follow along. Not only the potential of the market is big but the threats are also big. By enhancing the services and the method of payments, it directly powers the digital payment; making it more convenient for customers to use and relied on. In the next 10 years, with this kind of potential, there is no doubt that Southeast Asia will be one of the most successful e-commerce market in the world.

References
http://multichannelmerchant.com/blog/new-payment-services-changing-ecommerce/
http://oaji.net/articles/2016/2064-1452602042.pdf
https://www.mastercardbiz.com/2017/06/09/5-steps-to-improving-the-customer-experience-for-online-payments/
http://www.businessinsider.com/southeast-asias-set-for-explosive-e-commerce-growth-2017-5/?IR=T
https://www.adyen.com/dam/jcr:72351376-9e2e-4f30-84d1-d5612fe2c48d/Adyen%2520-%2520Payments%2520Guide%2520SEAsia.pdf

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