APAC

Generally considered to include all of the countries throughout East Asia, South Asia, Southeast Asia and Oceania, Asia-Pacific (APAC) is the world’s most inhabited region, with the total population surpassing 4.5 billion. 

 

Asia-Pacific has one the world’s most powerful economies; the APAC Gross Domestic Product (GDP) stands at a massive $32.25 trillion, which accounts for nearly 40 percent of the global total. The GDP of Asia alone is projected to soon overtake the GDP of the rest of the world combined. These figures are projected to account for 60 percent of global growth by 2030, with the bulk of that growth coming from the developing markets of China, India and throughout South-East Asia. APAC is the fastest growing economic region in the world, and has the largest economy when measured by GDP, as well as Purchasing Power Parity (PPP). 

 

The Asia-Pacific region contains a diverse range of economies with varying levels of development and a wide variety of industries. Although it is difficult to generalize industries within the region, major industries in larger and more developed economies include manufacturing, mining, semi-conductors, electronics, oil and natural gas, textiles, automobiles, financial services, pharmaceuticals and telecommunication.  

 

The e-commerce market in Asia-Pacific is estimated to reach $1.4 Trillion by the end of 2020, with the number of e-commerce consumers surpassing 1 billion people. China accounts for over 60 percent of digital buyers in the APAC region, followed by India and Japan at 10 and 9 percent, respectively. Retail e-commerce now accounts for over 15 percent of all retail sales in Asia-Pacific and is projected to continue rising. Cross-border e-commerce is also gaining popularity among consumers in the region. Over the past two years, the percentage of digital buyers making purchases from other countries has increased considerably, rising from just above 50 percent to nearly 75 percent.  

 

Although APAC is leading the world in several economic trends, including e-commerce and mobile payment adoption, it’s also one of the most fragmented regions when it comes to payments. Understanding APAC's unique payments and cultural landscape will help global businesses take better advantage of the opportunities and enormous potential the region presents. Markets such as China, Japan, Indonesia, and the Philippines don’t require businesses to set up a local entity to start connecting with local shoppers. From a payments perspective, this means that with the right payments partner, doing business in the region may be easier than you think.