COVID-19 has accelerated adoption of ecommerce and contactless payments in Singapore, Malaysia, Philippines, and Thailand, offering opportunities for businesses to continue operating while allowing consumers to stay safe.
COVID-19 has driven momentum towards the digital economy in Southeast Asia by necessitating rapid adoption of ecommerce, home deliveries, and digital and contactless payments, according to the latest Mastercard Impact Studies. Even as countries in the region start to ease restrictions and prepare for a “new normal”, the report indicates that some of these trends and habits formed in response to the pandemic are expected to remain for the long-term.
The recent results indicate a rise in online shopping in the region, with 40 percent or more of surveyed consumers in Malaysia, the Philippines, Singapore, and Thailand reporting they relied more on home delivery services in April than in March. Meanwhile, nearly half of the consumers surveyed in Malaysia, Singapore, and Thailand reported an increase in their online shopping during the same period.
Alongside these changes in purchasing habits was a region-wide shift in payment methods, with the majority of consumers in all Southeast Asia markets surveyed reporting a significant decrease in cash usage—64 percent in the Philippines—since the beginning of the COVID-19 outbreak. Meanwhile, various contactless payment methods saw their usage increase. Mobile and digital wallets saw the greatest uptick in use among all contactless payments methods in Malaysia, the Philippines, and Thailand.
With regards to consumer sentiment in the region, up to 83 percent of Filipinos remain cautious about COVID-19 infection, and there are broad concerns held across the region about how the pandemic is affecting household finances. The uncertainty has also led to consumers holding off on making big-ticket purchases—80 percent in the Philippines.
Mastercard adopted a drive into digital commerce many years before COVID-19 to maximize options and convenience for consumers in how and where they shop and pay—by tapping a card or mobile device on a contactless terminal in a shop, using an e-wallet within a smart phone, making a purchase online or seamlessly transferring money and paying bills. For merchants of all sizes, Mastercard has a range of solutions and services in e-commerce, payments, cybersecurity, fraud protection, data analytics and productivity to help businesses thrive in the changing business environment.
Mastercard is fully focused on supporting consumers and businesses in their bid to go cashless. Some of these initiatives include:
- Increased contactless limits. In March, Mastercard increased contactless payment limits in 50 countries worldwide to help consumers, merchants and small businesses access the resources to pay safely, receive payment and maintain operations during the COVID-19 crisis and beyond.
- Digital disbursements. Mastercard is actively partnering with key players in the private and public sectors to drive digital payments and financial inclusion to those who have been impacted by COVID.
- Contactless transport solutions. Mastercard is working with cities across the world, including Singapore and Malaysia, to simplify customer experiences in transportation, by integrating contactless payments in transit and allowing commuters to pay for their fares using a debit or credit card, or a contactless-enabled device.
- Ecommerce tools that empower businesses. In supporting businesses looking to strengthen their presence in the digital marketplace, Mastercard continues to develop solutions such as Simplify Commerce, a simple and secure platform that makes it easier for businesses to accept electronic payments, regardless of payment brand. Offering payments and business management features that simplify backend processes, merchants are able to focus on core business functions as they enter the digital space.