FSA Study Reveals Singapore & Malaysia to Be Ideal Testing GroundsDecember 3, 2013
For Merchants Aiming to Expand into Asian E-commerce Market
AMSTERDAM, THE NETHERLANDS–(Marketwired – Dec 3, 2013) – The Financial Study Association of Amsterdam, the largest of its kind in the Netherlands, has identified Singapore and Malaysia as ideal testing grounds for merchants who want to expand their business internationally and explore the potential of the Asian market. Even though the e-commerce markets in Singapore and Malaysia are relatively small compared to Asian giants like China (US$190 Bn) and Japan (US$64 Bn), the study illustrated that these two smaller countries stand out with respect to the size of the cross-border share of the e-commerce market, offering unique e-commerce propositions which will help merchants to adapt locally and understand the particularities of this rapidly growing ecommerce region.
The study entitled “Cross-Border eCommerce in Asian Markets: Singapore and Malaysia” is the result of joint efforts by Payvision, independent Payment Solution Provider specialized in Global Card Processing for the ecommerce market, and the FSA Research Project, an initiative of the Financial Study Association of Amsterdam. The study focused on the benefits offered by cross-border ecommerce in Singapore and Malaysia to ISOs, PSPs, acquirers and their worldwide merchants.
According to the opinions of industry experts and the data studied, an estimated 55% of all ecommerce in Singapore and 40% of all Malaysian ecommerce is cross-border, an extremely high percentage compared to cross-border ecommerce figures for Japan (18%) and South Korea (25%). Moreover, Singapore and Malaysia offer international companies a fertile entrepreneurial environment, a developed digital landscape and very advanced IT infrastructure to successfully test and adapt their products and marketing strategies, and therefore establish a strong foothold in Southeast Asia.
“The multicultural, multilingual nature of both societies and their developed e-commerce ecosystem represent a perfect landscape for e-commerce companies with the ambition to expand into Southeast Asia and, in a next phase, to tap into well-established Asian e-commerce markets. Over the last years, e-commerce has been growing rapidly throughout the region and Singapore is turning into a regional e-commerce hub. With more than 60 million people browsing the web, Southeast Asia is a significant market for e-commerce businesses,” said Marrit Teirlinck, researcher FSA.
“We were delighted to work with FSA and be able to provide the ecommerce and payments companies with updated, insightful data, which will support their international expansion strategy. Asia is the fastest growing e-retail market in the world, with very challenging and specific market features. Southeast Asia could be the ideal testing ground for merchants who aim to expand their business internationally through profitable cross-border ecommerce in the region,” said Gijs op de Weegh, CCO Payvision.
The report also showed that credit cards are the preferred payment method for about 80% of the cross-border transactions, and more than half of the products bought overseas are purchased from online stores based in the USA. However, many Singaporeans speak Mandarin, and this will prove to be an important driver for cross-border ecommerce between China and Singapore. Chinese websites like TaoBao are tapping into the Singaporean market by launching local websites. The signing of the Free Trade Agreement with the EU will boost cross-border ecommerce between Europe and Singapore.
Another key conclusion of the report is that in order to successfully expand into these new markets, merchants need to partner with an international card processor with a global acquiring network, who has expertise in all aspects of cross-border ecommerce and extensive understanding of rules and regulations, multi-currency processing and risk management.
About the Report
Over 25 industry experts in Singapore and Malaysia were interviewed and industry trends and opportunities were discussed with local representatives of multinationals such as PayPal, Expedia and DHL. In addition, executives of local companies with a major foothold in the local e-commerce industry have been included in the study, such as AirAsia, Singapore Post, Lazada, iPay88, Luxola. Apart from the information collected during the interviews, the research took into account the findings of other several industry reports. A complete list of the interviewees and the industry reports can be found in the last chapter of this Report.
The researchers made the report public and it can be downloaded from Payvision’s White Papers web page.
Payvision, an independent payment solutions provider specialized in global card processing for the e-commerce market, offers Acquiring Banks, PSPs, ISOs and their Merchants a secure, PCI-DSS Compliant, PSD Licensed, international payment processing platform, enhanced with innovative technology.
With one of the fastest growing global acquiring networks in the world, Payvision provides international eCommerce opportunities, supporting its partners to expand their global footprint.
Payvision provides its customers 24/7 Support, 150+ transaction currencies and regional card settlement currencies, a high-end reporting interface and a solid risk management solution.
Founded in 2002, Payvision is headquartered in Amsterdam and has expanded its global services to over 40 countries with offices in New York, Utah, Madrid, Paris, London, Berlin, Singapore, Hong Kong, Macau, and Auckland. Payvision has been awarded with “Best CNP program outside U.S.” during CNP Expo 2013, which took place in Orlando, Florida.
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About FSA Research Project
FSA Research Project is organized every year by the Financial Study Association Amsterdam (FSA). It is administered by the students from University of Amsterdam and the VU University Amsterdam, and it offers students the opportunity to gain international consultancy experience, by bridging the gap between the theory as thought in the university and the practice of the business field. Extensive training and supervision by knowledgeable experts in the preparatory phase is provided to every research team in order to ensure professional research and highly insightful study reports. The high quality of the research projects is guaranteed by years of experience, the careful selection of the researchers, seminars from experts in various fields, and guidance by the best professors the city of Amsterdam has to offer.