SE Asia Local Payment Market Size 2020-2023: Indonesia Leads, Chinese Payment Firms Expand
From 2020 to 2023, local payment transaction volumes in five SE Asian countries rose steadily, with Indonesia reaching $130B, as Chinese payment firms engage through partnerships.
Growth Trend of SE Asia Local Payment Market Size
Driven by high digital penetration and a young demographic, Southeast Asia has become one of the fastest-growing regions for local payment markets. According to industry estimates, the total local payment transaction volume in Indonesia, Thailand, Vietnam, the Philippines, and Malaysia reached approximately $325 billion in 2023, up 160% from $125 billion in 2020.
Indonesia: Absolute Leader
As the largest economy, Indonesia's local payment market grew from $50 billion in 2020 to $130 billion in 2023, a CAGR of 37.5%. Drivers include government-backed payment infrastructure (e.g., BI-FAST), e-commerce boom, and e-wallet penetration (GoPay, OVO).
Thailand & Vietnam: Strong Growth
Thailand rose from $30 billion to $70 billion, supported by PromptPay and social commerce integration. Vietnam surged from $20 billion to $60 billion (CAGR 44.2%), with cash still dominant but e-payments rapidly replacing it.
Philippines & Malaysia: Steady Catch-up
Philippines increased from $15 billion to $40 billion, Malaysia from $10 billion to $25 billion. Growth was fueled by digital remittances and unified QR standards (QR Ph, DuitNow).
Role of Chinese Payment Firms
Chinese payment companies participate via strategic investments and tech transfer:
- Ant Group: Invested in Gojek (GoPay), GCash (Philippines), Ascend Money (Thailand);
- Tencent: Partnered with Touch 'n Go (Malaysia) to expand WeChat Pay ecosystem;
- Independent players: Ping++ and Airwallex provide aggregation solutions.
Their model has shifted from direct expansion to local empowerment, helping upgrade infrastructure while reducing regulatory friction.
Data Notes
This chart shows annual transaction volumes (in billion USD) for 2020–2023. Data sourced from FIS Worldpay's Global Payments Report and industry estimates, rounded. Actual figures may vary slightly but reflect overall trends.
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