2. Table of
Contents
Introduction: Rise of alternative
payments, supercharged by
e-commerce growth in
Southeast Asia
01: Alternative payments show high
stickiness in Southeast Asia
02: Brands are integrating alternative
payments to drive growth and stay
competitive
03: Alternative payment providers
are expanding payment options
and services throughout the
shopping journey
Methodology used to prepare
this report
3
8
16
20
25
3. Rise of alternative payments,
supercharged by e-commerce
growth in Southeast Asia
With high internet penetration and fast-
growing smartphone usage in Southeast
Asia, the region has long been
established as a mobile-first economy.
Internet usage in the region saw
an unprecedented leap during the
pandemic. The numbers in Southeast
Asia show how online presence and
smartphone penetration are mounting
throughout the region.
1
(2022) 2022 Mobile Marketing Handbook Southeast Asia, The Indisputable Magic of Mobile [online]. Available at: go.inmobi.net/hubfs/
SEA_2022_MMHReport/sea-mobile-marketing-handbook-2022.pdf (accessed 16 Nov 2022)
2
(2022) How digitalization is making South and Southeast Asia engines of growth, World Economic Forum [online]. Available at: weforum.
org/agenda/2022/02/digitalization-south-southeast-asia/ (accessed 7 Nov 2022)
40M
New internet users
Southeast Asia 20211
of the region now
has online presence
are identified as
smartphone users
Leading in
smartphone
penetration2 Singapore Malaysia Thailand
87% 83% 75%
75%
88%
Introduction Chapter 01 Chapter 02 Chapter 03 Methodology
3
4. With these structural factors at play, the staggering growth of e-commerce
in Southeast Asia seems like a foregone conclusion. E-commerce gross
merchandise value (GMV) and gross transaction value (GTV) throughout the
region has only accelerated, catalysed by the pandemic; this growth was in no
way slowed down by the resumption of offline shopping as restrictions have
eased across Southeast Asia.
Southeast Asia: E-commerce Gross Merchandise Value (GMV)
growth from pandemic till 2022 (US$billion)3
2020 2021 2022
% increase
(2022 vs 2020)
Grocery 7 15 18 157
Non-Grocery 67 97 112 67
Total 74 112 130 76
3
(2022) Bain and Company / Temasek / Google, e-Conomy SEA 2022 [online]. Available at services.google.com/fh/files/misc/e_conomy_
sea_2022_report.pdf (Accessed 18 Nov 2022)
Introduction Chapter 01 Chapter 02 Chapter 03 Methodology
4
5. Throughout the pandemic, the growth of e-commerce led to the concurrent
acceleration in adoption of digital payments, with payments gross transaction
value exceeding $800 billion in 2022 after surging over 35% since 2019 – with
significant growth expected in the next three years across the region.
Southeast Asia: Digital Payments
Gross Transaction Value (US$billion)4
2019 2022 2025
(projected)
% increase
(2022 vs 2020)
% increase
(2025 vs 2022)
Southeast Asia 595 806 1174 35 46
Singapore 83 107 127 29 19
Malaysia 83 146 199 76 36
Philippines 66 75 123 14 64
Thailand 102 113 161 11 42
Vietnam 55 99 143 80 44
Indonesia 206 266 421 29 58
4
(2022) Bain and Company / Temasek / Google, e-Conomy SEA 2022 [online]. Available at services.google.com/fh/files/misc/e_conomy_
sea_2022_report.pdf (Accessed 18 Nov 2022)
Introduction Chapter 01 Chapter 02 Chapter 03 Methodology
5
6. 207.4
61.6
24.8
5.15
0.61
0.57
0.49
0.96
1.06
65.2
41.9
404.1
8.83
By 2025, SEA will see
250+ million new users
representing a 1.6x
increase from 2020.
Indonesia
2025E
2025E
Indonesia
Philippines
Philippines
Malaysia
Malaysia
Singapore
Singapore
Thailand
Thailand
Vietnam
Vietnam
+132.5 M
new users
8.7x
increase
+38.01 M
new users
10.4x
increase
+11.2 M
new users
9.2x
increase
+1.7 M
new users
3.9x
increase
+23.3 M
new users
7.1x
increase
+43.3 M
new users
23x
increase
By 2025, BNPL spend
will expand by +$7.9
billionrepresenting an
8.8x growth from 2020.
3.2
SEA mobile wallet users (Million)
BNPL spend on ecommerce ($ Billion)
Alternative payments are expected to fuel a financial transformation in digital payments.
A 2021 IDC InfoBrief expects that, within Southeast Asia, new mobile wallet users
will grow 1.6x and Buy Now Pay Later (BNPL) spend by 8.8x between 2020 to 2025.
Indonesia may be the most fertile ground yet for both BNPL and mobile wallets in the
near term, with the country contributing an estimated 207.4 million new mobile wallet
users and US$ 5.15 billion BNPL spend on e-commerce by 2025.5
5
(2021) How Southeast Asia Buys and Pays, IDC Infobrief [online]. Available at: go.2c2p.com/wp-content/uploads/2021/11/2C2P-IDC-
InfoBrief_AP241267IB_Final_Small.pdf (accessed 7 Nov 2022)
Introduction Chapter 01 Chapter 02 Chapter 03 Methodology
6
7. 5.15
As the alternative payments landscape continues to evolve, how can
brands remain agile and stay ahead of the intensifying competition
in Southeast Asia? This report provides insights for brands, by doing
a deep dive into three key insights based on consumer, brand, and
industry trends, and providing tips on how brands can effectively
leverage them to drive growth in Southeast Asia.
Introduction Chapter 01 Chapter 02 Chapter 03 Methodology
7
9. Overview: a growing presence
in Southeast Asia’s payments
Mobile wallets, loved for their ease of use and convenience, have
shown stickiness across Southeast Asia. When the top three most
often used payment sources are measured across the region, mobile
wallets tend to make a strong showing.
Introduction Chapter 01 Chapter 02 Chapter 03 Methodology
9
10. vs. 41% credit
cards and 13%
debit cards
vs. 19% cash and
12% debit cards
vs. 45% cash and
6% credit cards
vs. 26% cash
and 23% online
banking
vs. 29% cash
and 11% online
banking
SINGAPORE
25% 41% 39% 34% 42%
MALAYSIA PHILIPPINES THAILAND VIETNAM
Mobile wallets in top three most often-used payment
sources across Southeast Asia (as of Q2 2022)6
Quarter-on-quarter growth
in BNPL usage among Grab
users who use any brand
of mobile wallet(s)8
Notably, BNPL is increasingly popular among mobile wallet users,
where it is most often used to shop for bigger value items, a use case
consistent across the region.7
6
Online survey by Nielsen for Grab from April - June ‘22, across 9000 respondents based in Singapore, Malaysia, Philippines, Thailand,
Vietnam. Data collection was from Apr - June 2020 (Q2 ’20), Apr - June 2021 (Q2 ’21), Apr - June 2022 (Q2 ’22)
7
Online in-app survey conducted internally amongst Grab users in Singapore, Malaysia, Philippines, Thailand, and Vietnam. Data collection
was from 8th - 16th April 2022. Total no. of respondents: 9,430
8
Online survey by Nielsen for Grab from April - June ‘22, across 9000 respondents based in Singapore, Malaysia, Philippines, Thailand,
Vietnam. Data collection was from Apr – June 2020 (Q2 ’20), Apr – June 2021 (Q2 ’21), Jan – Mar 2022 (Q1 ‘22) Apr – June 2022 (Q2 ’22).
No. of respondents for each quarter = 9000.
THAILAND
SINGAPORE
MALAYSIA
7x
6x
4x
Q2 ’22 vs Q1 ’22
Introduction Chapter 01 Chapter 02 Chapter 03 Methodology
10
11. Why is this trend happening?
Southeast Asia is home to 370 million digital
consumers.9
However, six out of ten people in the
region are unbanked and only 17% of transactions
are cashless.10
Mobile wallets and BNPL services enable millions of
previously underserved people access to financial
services. Wallets and BNPL also seamlessly integrate
with the checkout flows of e-commerce sites, helping
increase conversion rates and (in the case of BNPL)
lessens the consumer reluctance to pay up front.11
Alternative payments aren’t just for the underbanked.
In 2022, out of 16 use cases listed, online shopping
(discretionary spending) emerged as the top use case
by far for mobile wallet users across the region. Food
and grocery-related categories made up the rest of
the top use cases.
Top use cases among
past month mobile
wallet users12
Singapore Malaysia Philippines Thailand Vietnam
Q2’22
Online shopping 60% 70% 74% 62% 76%
Paying at restaurants, food
stalls, food courts
59% 55% 29% 39% 33%
App services like food,
groceries delivery
49% 54% 52% 46% 41%
Paying at grocery stores/
hyper/supermarkets
44% 61% 34% 52% 44%
Instore/offline retail
shopping at mall (e.g.
fashion, accessories)
32% 42% 25% 30% 35%
9
(2022) Southeast Asia’s Digital Consumers: a New Stage of Evolution, Meta/Bain & Company [online]. Available at: bain.com/globalassets/
noindex/2022/meta_bain_syncsea_2022.pdf (accessed 7 Nov 2022)
10
(2021) Mobile wallets: Southeast Asia’s new digital life hack, McKinsey [online]. Available at: mckinsey.com/industries/financial-services/
our-insights/mobile-wallets-southeast-asias-new-digital-life-hack (accessed 7 Nov 2022)
11
(2021) Driving New Business Value for Merchants, IDC InfoBrief [online]. Available at: go.2c2p.com/wp-content/uploads/2021/11/2C2P-
IDC-InfoBrief_AP241267IB_Final_Small.pdf (accessed 16 Nov 2022)
12
Online survey by Nielsen for Grab from April - June ‘22, across 9,000 respondents based in Singapore, Malaysia, Philippines, Thailand,
Vietnam.Data collection was from Apr - June 2020 (Q2 ’20), Apr - June 2021 (Q2 ’21), Apr - June 2022 (Q2 ’22)
Digital
consumers
in Southeast
Asia
370M
Introduction Chapter 01 Chapter 02 Chapter 03 Methodology
11
12. Grab’s own experience with GrabPay
and PayLater by Grab has underscored
the stickiness of alternative payments
for our users. Consider the numbers
below, which record significant
increases in retention rates for GrabPay
users against cash users; and increased
transactions by PayLater by Grab users
against non-PayLater users.13
By partnering with Grab, merchants who integrate Grab’s payment solutions,
or sell via GrabMart or GrabFood, all benefit from Grab’s highly engaged and
loyal user base.
GrabPay users more likely to
use a second Grab product
compared to cash users
TPV per user
(PayLater vs. non-PayLater)
increase in 10+ months
retention rates of GrabPay
users compared to cash users
Transactions per user
(PayLater vs. non-PayLater)
2.9x +25%
1.5x +22%
13
(2022) Grab Investor Day 2022, Grab [online]. Available at investors.grab.com/static-files/2194c340-00a6-4366-baa6-e84425063c78
(accessed 7 Nov 2022)
Introduction Chapter 01 Chapter 02 Chapter 03 Methodology
12
13. Insight: how brands can
ride the payments wave
As alternative payments have
increased in popularity along with the
growth of e-commerce in Southeast
Asia, a growing window of opportunity
presents itself for brands in the region.
Among key commerce categories, an
upward trend was observed for mobile
wallet and BNPL usage generally; a
7.2x uplift in number of users year-
over-year (Q3 ’22 vs Q3 ’21) was seen
in certain categories.
Between Q3 ‘21 and Q3 ’22, Singapore
and Malaysia saw significant growth in
PayLater usage.
3.1x 2.2x
2.6x 1.5x
SINGAPORE SINGAPORE
MALAYSIA MALAYSIA
Fashion
Usage growth based on number of transacting users
(between Q3 ‘21 and Q3 ‘22)14
Beauty
usage growth usage growth usage growth usage growth
14
Grab internal data, Q3 ’21-Q3 ’22: Payment usage behaviour in Singapore and Malaysia
Usage growth
7.2x
Among key commerce
categories for mobile
wallets & BNPL
Introduction Chapter 01 Chapter 02 Chapter 03 Methodology
13
14. usage growth
usage growth usage growth usage growth usage growth
The upward usage trend of alternative payments in Southeast Asia is especially
apparent among underbanked users, reinforcing the importance of providing
these consumers with flexible payment options. For example, in both Singapore
and Malaysia, PayLater by Grab users are more likely to own debit cards over
credit cards.15
89%
74%
52%
60%
Singapore
Debit card owners Credit card owners
Malaysia
users
usage growth
usage growth usage growth usage growth usage growth
15
Grab internal data, October ‘22: Based on type of card(s) used in the Grab app in Singapore and Malaysia
Pro-tip:
While consumer preferences can change rapidly, mobile-enabled
alternative payments such as wallets and BNPL are entrenched
in the life of Southeast Asia consumers, and will continue to rise
in popularity in the next few years. To remain competitive, brands
should consider integrating these payment methods as part of their
growth strategy in Southeast Asia.
Introduction Chapter 01 Chapter 02 Chapter 03 Methodology
14
15. Southeast Asia’s Mobile Wallet User Profiles16
BNPL Users in Singapore and Malaysia17
16
(Online survey by Nielsen for Grab from April - June ‘22, across 9,000 respondents based in Singapore, Malaysia, Philippines, Thailand,
Vietnam. Data collection was from Apr - June 2020 (Q2 ’20), Apr - June 2021 (Q2 ’21), Apr - June 2022 (Q2 ’22)
17
Online survey by Nielsen for Grab from April - June ‘22, across 9,000 respondents based in Singapore, Malaysia, Philippines, Thailand,
Vietnam. Data collection was from Apr - June 2020 (Q2 ’20), Apr - June 2021 (Q2 ’21), Apr - June 2022 (Q2 ’22)
Alternative payment users in Singapore tend to be mid-high earners,
while in other ASEAN markets they are mainly used by low-mid
income earners.
Introduction Chapter 01 Chapter 02 Chapter 03 Methodology
AGE
HIGH
INCOME
(US$)
35 and above
24 and below
SG: US$2,211 and below
MY: US$684 and below
PH: US$357 and below
TH: US$571 and below
VN: US$312 and below
SG: US$2,211 and below
MY: US$684 and below
PH: US$357 and below
TH: US$571 and below
VN: US$312 and below
SG: US$4,427 and above
MY: US$1,597 and above
PH: US$2,231 and above
TH: US$1,147 and above
VN: US$583 and above
SG: US$4,427 and above
MY: US$1,597 and above
PH: US$2,231 and above
TH: US$1,147 and above
VN: US$583 and above
LOW
INCOME
(US$)
HIGH
INCOME
(US$)
AGE
35 and above
24 and below
LOW
INCOME
(US$)
15
17. Overview: rapid rise of
payment partnerships
Given the increasingly prevalent usage of
mobile wallets and the rise in popularity
of BNPL amongst consumers in Southeast
Asia, brands are taking notice. More
and more merchants in the region are
increasingly offering these alternative
payment methods among their available
checkout options.
Consider the rapid growth in the number
of Grab-partnered brands for BNPL
in Singapore and Malaysia: Malaysia
experienced 4.5X uplift year-over-year in
the number of Grab-partnered brands for
BNPL (and Singapore 4X).18
4x 4.5x
SINGAPORE
MALAYSIA
Growth of Grab-partnered
brands for BNPL YoY
18
Grab internal data, Dec ‘20-Dec ‘21, select Singapore and Malaysia partnered brands for GrabPay Wallet and PayLater by Grab
Introduction Chapter 01 Chapter 02 Chapter 03 Methodology
17
18. 64%
Increase in
basket sizes
Why is this trend
happening?
Brands are recognising the benefits linked with
integration with alternative payment platforms
like GrabPay and PayLater by Grab.
An examination of brands who integrated
PayLater by Grab across Singapore and Malaysia
revealed encouraging results: Brands in certain
categories experienced an uplift of up to 64%
in basket sizes and up to 227% in the number
of transactions during co-marketing campaign
periods, post-PayLater integration.19
19
Grab internal data, Apr-Jul 2022, select Singapore and Malaysia partnered brands for GrabPay Wallet and PayLater by Grab
227%
Increase in number
of transactions
during co-marketing campaigns
Introduction Chapter 01 Chapter 02 Chapter 03 Methodology
18
19. Grab has worked with a broad (and growing) collection of key partners across
commerce categories, some of which are listed below.
Alternative payment providers with rich customer insights can further
drive growth through personalised marketing activities and channels.
In a culturally diverse and complex landscape like Southeast Asia,
consider partnering with providers like Grab, that demonstrate wide
scale and in-market expertise, to make sizable inroads in the region.
Fashion:
Home &
Living:
Health &
Beauty:
Travel:
Mart:
Electronics:
Pro-tip:
Introduction Chapter 01 Chapter 02 Chapter 03 Methodology
19
21. Overview: diversification
wins over consumers
While alternative payments remain as
popular payment options in Southeast
Asia, it is clear that these players see
diversification as imperative to improving
consumer engagement and retention.
Within payments, players are expanding
payment options to provide consumers
with more flexibility on how they want to
pay. A recent example includes Affirm’s
Debit+, where consumers can choose to
pay upfront or pay later in instalments.20
Closer to home, Grab offers similar
diversity with the GrabPay wallet (for
paying now) and PayLater by Grab (for
paying later, in one or 4 instalments).
Beyond payments, players are building
integrated shopping platforms that
combine shopping with consumer
financing. For example, Klarna launched
an all in one shopping app last year that
bridged the online shopping experience
with their BNPL solution.21
Similarly,
Grab offers a discovery experience for
shoppers in SEA, through the in-app
‘shopping’ tile, where users can browse
thousands of merchants, shop merchant
deals, have more ways to pay with its
suite of alternative payment solutions,
earn loyalty points with every purchase,
and enjoy certain orders sooner with last-
mile delivery fulfilment.
20
(2022) One new card. Two ways to pay, Affirm [online]. Available at www.affirm.com/debit accessed 21 Nov 2022)
21
(2021) Next generation shopping: Klarna reveals the only shopping app consumers need, Klarna [online]. Available at klarna.com/
international/press/next-generation-shopping-klarna-reveals-the-only-shopping-app-consumers-need/ (accessed 16 Nov 2022)
Introduction Chapter 01 Chapter 02 Chapter 03 Methodology
21
22. Why is this trend happening?
Even as the usage of alternative payments
continues to increase, the bar has been
raised with regard to meeting minimum
customer expectations. Brands must work
harder to meet ever-escalating standards
set by their customer base.
For example, almost half of shoppers will
abandon a purchase if their preferred
payment method is not available. A
Citcon/PYMNTS study found that 41%
of brands that lack localised payments
options for APAC shoppers lost 60% or
more of their sales to cart abandonment,
compared to 32% for brands that offer
localised payments options.22
60%
loss of sales
due to cart
abandonment
by 41% of brands lacking
localised payments options
22
(2022) Study: APAC Cart Abandonment Rises 32% Absent Localized Payment Methods, PYMNTS [online]. Available at pymnts.com/news/
retail/2022/study-apac-cart-abandonment-rises-32-percent-absent-localized-payment-methods/ (accessed 16 Nov 2022)
Introduction Chapter 01 Chapter 02 Chapter 03 Methodology
22
23. When evaluating BNPL partners, brands should consider
platform flexibility and customer retention through multiple use
cases. We recommend brands look at the following key factors
for evaluation:
Operational maturity: Choose providers like Grab with proven technical and
operational experience, and who can integrate mobile wallets, BNPL and a
frictionless payment experience for end users.
Multi-use platform capability: Given the choice between straightforward
payments providers and those whose platforms offer a multitude of use cases
for consumers, brands should pick the latter. These providers offer so much
more than just payment processing: consumer retention, loyalty, engagement
and acquisition.
Pro-tip:
Payment frictions aren’t the only
pressures that brands need to contend
with. Customers now take the availability
of online shopping, buy online, pick up in-
store (BOPIS), curbside pick-up and fast
delivery for granted. This means brands
must now contend with a record low
tolerance for issues like slow shipping,
unavailable or damaged products, and
lack of localised payments.23
Delivery times have now increasingly
borne the brunt of higher customer
expectations: A Facebook/Bain report
found that 32% of Southeast Asia
consumers were willing to switch their
preferred e-commerce websites to those
that could offer faster delivery time.
The message is clear: brands that fail
to deliver on escalating customer
expectations for payments, delivery
or other factors will be discarded for
those that do.
23
(2022) The Evolution Of Customer Expectations And How Businesses Can Meet Them, Forbes [online]. Available at: forbes.com/sites/
forbestechcouncil/2021/06/17/the-evolution-of-customer-expectations-and-how-businesses-can-meet-them/ (accessed 16 Nov 2022)
Introduction Chapter 01 Chapter 02 Chapter 03 Methodology
23
24. How Grab can help
Grab’s operations in Southeast Asia cover ten years, eight countries and over 480
cities in the region. Our everyday services are integrated authentically into daily lives
of consumers – including digital financial services, mobility, deliveries, and more. This
allows the company to form deeper connections with Southeast Asian consumers.
Merchants can gain access to Grab’s ecosystem of services, to tap tools that can help
improve the consumer experience across multiple shopping touchpoints, including (but
not limited to) our suite of popular alternative payments; on-demand delivery leveraging
on Grab’s regional logistics network; and loyalty programme. Other value added services
include GrabAds, our online to offline advertising platform, which can further drive
growth for brands.
Partner with Grab, and elevate growth by leveraging hyperlocal insights and reaching
millions of highly engaged Southeast Asian consumers.
To get started:
Contact Grab via grab.com/sg/merchant/finance/apply/
Learn more via grab.com/sg/merchant/checkout-solutions/
Introduction Chapter 01 Chapter 02 Chapter 03 Methodology
24
25. Primary
research*
Internal
Grab data**
Credible third-
party sources***
Online surveys and
in-app surveys
2020-2022 Research and reporting
from trusted sources
The report is based on research conducted by NielsenIQ among past one month mobile
wallet users across respective markets, and online in-app surveys conducted by Grab
among Grab users. The report also includes insights derived from Grab’s internal
database and credible third-party sources between 2020 and 2022.
*Primary research
• An online survey by NielsenIQ for Grab among Grab users, who use mobile wallets (any mobile
wallet, including the GrabPay wallet) across Singapore, Malaysia, Philippines, Thailand, and
Vietnam. Data collection was from Apr – June 2020 (Q2 ’20), Apr – June 2021 (Q2 ’21), Jan –
Mar 2022 (Q1 ‘22) Apr – June 2022 (Q2 ’22). No. of respondents for each quarter = 9000.
• An online in-app survey conducted internally among Grab users who are aware of Buy Now,
Pay Later (BNPL), in Singapore, Malaysia, Philippines, Thailand, and Vietnam in 2022. Data col-
lection was from 8-16 April 2022, no. of respondents = 9430
• An online in-app survey conducted internally among Grab users of PayLater by Grab, in Singa-
pore and Malaysia. Data collection was from 22-25 August 2022, no. of respondents = 1927.
**Grab’s internal database: (Dec 2020 – Sep 2022)
• Payment usage behaviour in Singapore, Malaysia, Philippines, Thailand, and Vietnam
• No. of partnered brands for GrabPay Wallet and PayLater by Grab
***Third-party sources:
• Research conducted and published by trusted payment & integration partners e.g. Adyen,
Stripe, 2c2p, Shopify
• Market research and reporting from McKinsey, Forbes, Bloomberg, Nikkei, Financial Times,
CNBC and more
Methodology used
to prepare this report
Introduction Chapter 01 Chapter 02 Chapter 03 Methodology
25