Expanding to APAC market: overview & payment trends

The markets of the Asia-Pacific region are now much easier to enter due to the pandemic restrictions and lockdowns all over the world. And many online businesses are making use of this. If your company is among them, this article is just what the doctor ordered.

Like any other, the APAC market has its rules to be followed by market players. We are more than happy to help you get these rules sorted out.

General market overview

The Asia-Pacific generally includes East Asia, South Asia, Southeast Asia, and Oceania. Countries in the Asia-Pacific region are rapidly recovering from COVID-19. According to McKinsey, the total number of cases and deaths from coronavirus in the Asia-Pacific region was less than in other parts of the world. Therefore, many entrepreneurs have changed their plans and transferred their business from Europe to the APAC countries.

E-commerce in the APAC region is one of the fastest-growing globally, which makes this market promising for business expansion. According to McKinsey, this region accounted for more than half of global Internet sales in 2017. And in 2020, the world’s middle class joined 1.4 billion people, 85% of whom live in the Asia-Pacific region.

An essential point to know before expanding to APAC: during the pandemic, the use of cash in Asia fell sharply, and the spread of contactless payments accelerated.

Specificity of the APAC market for businesses

This region is often considered to be a tough nut to crack due to several peculiarities. The two main are the fragmented payment landscape and the disjointed behaviour of the purchasers.

  • Consumer behaviour. The APAC region comprises 48 countries, and each perceives goods and advertising in its own way. For instance, in Malaysia, people trust the influencers’ opinions, but Filipinos prefer to see customers’ reviews.

Peculiarities by regions

According to the World Bank economy ranking, the APAC region is quite ambiguous. This ranking takes into consideration the loyalty of the regulatory environment to start and operate a local company. Certain countries favour starting new businesses or expanding the existing ones, and others presume certain challenges. We’ve compiled brief overviews of some countries with their ranking number to set the scene for you.

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