Payment trends in APAC for 2025: What merchants need to know

Asia-Pacific is one of the fastest-growing and most diverse ecommerce regions in the world. From massive markets like China and India to rapidly digitalizing economies in Southeast Asia, APAC is home to a complex landscape of payment methods, regulations, and consumer behaviors.

For merchants, understanding these local payment trends is not just an advantage. It is essential for capturing sales, reducing decline rates, and delivering the seamless experience customers expect. As we look toward 2025, merchants planning to expand or improve their presence in APAC need to prepare for several important trends that will define the payment landscape.

The APAC ecommerce landscape in 2025

APAC’s ecommerce market continues to outpace global growth, with forecasts projecting trillions in annual transaction volume by 2025. Mobile-first shopping habits dominate, especially in markets where super apps like WeChat, Grab, and Gojek have transformed how consumers discover, pay, and interact with brands.

Cross-border ecommerce is also booming. Consumers increasingly expect to buy from international merchants while using familiar, local payment methods. This rise in cross-border transactions adds complexity for businesses managing foreign exchange, local acquiring, and fraud prevention.

Regulatory shifts, such as data localization requirements, mean merchants must be careful to comply with local laws while maintaining operational efficiency. These dynamics make APAC both a high-potential region and one that demands careful, localized planning.

Key payment trends shaping APAC in 2025

Explosion of local alternative payment methods

Alternative payment methods (APMs) are central to the APAC payments story. Digital wallets such as Alipay, WeChat Pay, Paytm, and GrabPay dominate in many markets, often accounting for the majority of ecommerce transactions.

Bank transfers and QR-based payments have also gained widespread acceptance, with country-specific schemes tailoring solutions to local needs. Merchants who fail to support these options risk losing customers to competitors that offer a more localized checkout experience.

Real-time payment rails gaining adoption

Across APAC, real-time payment networks are growing rapidly. Systems like Singapore’s PayNow, India’s UPI, and Australia’s NPP allow for near-instant settlement and have become essential for both peer-to-peer and merchant payments.

For businesses, this shift offers faster cash flow and lower transaction costs but also introduces challenges around integration and reconciliation. Supporting these rails often means working with local PSPs or acquirers who understand the nuances of each market.

BNPL and credit innovations

Buy Now Pay Later (BNPL) services have taken hold across APAC, with especially strong adoption in Australia, Southeast Asia, and India. Consumers appreciate flexible payment options, while merchants benefit from increased average order values and conversion rates.

However, BNPL also brings regulatory scrutiny and operational complexity. Merchants need to integrate these services thoughtfully, balancing customer demand with risk management and compliance considerations.

Cross-border payment complexity

APAC’s growth in cross-border ecommerce introduces additional payment challenges. Currency conversion fees, local acquiring requirements, and fraud risk all vary significantly across markets.

Merchants must consider how to manage these variables to ensure approval rates remain high and costs stay predictable. Investing in local acquiring relationships and supporting local payment methods are key strategies for success.

Challenges for merchants expanding into APAC

Entering APAC markets is not as simple as launching a translated website. Merchants face:

• Dozens of local payment preferences that vary by country
• Multiple PSPs and acquirers with different capabilities
• The need to balance fraud prevention with a smooth user experience
• Compliance with local data storage and payment regulations
  

Managing these factors without a clear strategy can lead to higher decline rates, increased operational costs, and lost revenue opportunities.

How payment orchestration helps merchants succeed in APAC

Payment orchestration provides a way to simplify this complexity through a single integration layer. By connecting multiple PSPs, local payment methods, and fraud tools behind a unified API, orchestration makes it easier for merchants to adapt to APAC’s diversity.

Orchestration supports local acquiring relationships to improve approval rates, enables dynamic routing and retries to reduce failed transactions, and simplifies the addition of new payment methods as consumer preferences evolve.

It also offers consistent reporting and error handling across providers, reducing the maintenance burden for engineering teams. For merchants expanding into APAC, this flexibility is essential for meeting local expectations without overwhelming internal resources.

Learn more about payment orchestration and how it can help simplify your global payments strategy.

Action plan for merchants entering APAC markets

To succeed in APAC, merchants should consider:

• Researching payment preferences in each target country to prioritize integrations
• Selecting PSPs with strong coverage and local acquiring relationships
• Supporting alternative and real-time payment methods to meet customer expectations
• Planning fraud prevention strategies that balance security with a smooth checkout
• Testing and optimizing checkout flows for local languages, currencies, and payment behaviors
  

By taking these steps, merchants can reduce decline rates, increase trust with customers, and unlock the full potential of APAC’s ecommerce growth.

Frequently asked questions

What are the most popular payment methods in APAC?

Digital wallets, real-time bank transfers, credit and debit cards, and BNPL services are all widely used, with strong local variations by country.

Why do payment preferences vary so much across APAC?

APAC is not a single market but a region of many countries with different financial infrastructures, consumer behaviors, and regulations. Merchants need localized strategies to succeed.

How can merchants reduce payment declines in APAC?

Supporting local payment methods, using local acquiring relationships, and implementing smart fraud prevention are key ways to reduce declines.

What is payment orchestration?

Payment orchestration is a technology approach that connects multiple PSPs, payment methods, and fraud tools through a single integration, simplifying management and improving flexibility.

How does orchestration help with cross-border payments?

Orchestration enables merchants to support local payment methods, manage multiple PSPs, and reduce costs while maintaining high approval rates across diverse markets.

APAC’s ecommerce market holds enormous potential for merchants ready to meet its unique challenges. From supporting diverse local payment methods to navigating cross-border complexities and evolving consumer expectations, success in this region requires a flexible, localized approach.

Investing in a payment strategy that can adapt to these needs is essential. Payment orchestration offers a way to simplify integrations, manage multiple PSPs, and ensure reliable, customer-friendly checkout experiences across APAC’s varied markets.If you want to learn how orchestration can help you expand into APAC and streamline your global payments strategy, contact Gr4vy to get started.