Asia Pacific is the largest e-commerce region in the world, turning over US$567 billion in transactions in 2014. With 60% of the world’s population and a growing consumer base that is twice as likely to buy online than any other group in the world, Asia will set the agenda for global online retail in the next 5 years.

 

In a new white paper called “10 Industry-Wide Transformations Impacting E-Commerce in Asia Pacific & Implications for Growth” Mastercard points out 10 major trends that that are occurring in e-commerce that are impacting consumers, merchants and payment providers and issuers.

 

1.Mobile devices will be the door to High Street- The mobile screen will be a retail destination. It will give people on-the-go access to supermarkets, marketplaces, boutiques and niche stores. Securing prime real estate on the home screen is critical, as this is where the war for the consumer will be fought. On average, smartphone users regularly access only 26.7 apps per month out of more than a million available for download.

 

2. Familiarity breeds consent - Merchants that use transaction data ina secure and intelligent way will unlock the trust of the consumer. People willbe able to choose to only receive offers that are relevant and of value to them.Companies that get the equation right will be given permission to access more touchpoints in people’s lives.

 

3.Marketing will bring magic to micromoments to drive transactions - Advertising as we know it will bereplaced by campaigns that respond to people’s immediate mental and emotional states. With the Digital &E-Commerce Engine, MasterCard is already seeing the effectiveness of similar targeted, real-time strategies.

 

4.You’ll never shop alone - Consumers will browse, rate and recommend products and services with friends and followers at all times. We already see an increase in partnerships between merchants and social platforms like Instagram, Facebook and Pinterest that make each shopping moment shareable with one-click. This taps into the growing dominance of influencer and peer marketing that consumers are growing accustomed to.

5. Data will drive intent - We will be prompted to shop for thing seven before we know we need them. Fridges will generate shopping lists based on consumption patterns and preferences, and your location will serveup the best deal for dinner. Shopping will be one component of a much larger digital ecosystem. Data gathered fromoperating systems and mobile devices will inform what we buy, when we buy

and who we buy from.

 

6. Service and rewards will be the killer apps - Comparison shopping will make price table stakes. The merchants who deliver on their brand promise in a personalised and emotionally engaging way will earn the dollars and loyalty of consumers. Reward systems and CRM programmes will become critical for sustainable success.

 

7.Every retailer will set up a digital shopfront - Merchants of all sizes will be able to afford the assurance of secure payment transactions. Financial data managementwill be democratised by integratedoperating systems developed bycompanies like MasterCard.

 

8.Security in a heartbeat. The use of biometric data from mobileand wearable devices will ensureconstant identity authentication. This is already being explored with the use offacial recognition and electrocardiogram (ECG) technology.

 

9.The consolidation of digital wallets - With digital payments being progressivelyintegrated on mobile phones, there will be less need to subscribe to a range of digital wallets (there are over 20 inIndia alone). Payment technology like MasterPass is enabling consumers,issuers and merchants to leapfrog to asecure digital payment network. This is happening through cutting edge technology in digitisation, tokenization and authentication of card information. At the same time, big digital players like Apple, Samsung and Android are using existing payment networks like MasterCard, integrated into their cardon-file systems.

 

10. Faster checkouts, less fraud - The consolidation within the digital payments industry, and the innovations in digitisation, tokenization andauthentication will mean that consumersexperience a seamless check-outexperience. This will also mean thatmerchants will not need to hold hugeamounts of personal payment datawhich is making them a target for fraud.

 

Sam Ahmed, group head of Marketing, Asia Pacific at MasterCard said: “Asia Pacific’s e-commerce trajectory has been nothing short of explosive, and with a growing consumer base that is twice as likely, to buy online than any other group in the world, the opportunities are endless. As consumers transact more online, the importance of digital payment options that give consumers a seamless check-out experience is on the rise. And along with that, the need for payment security, which is addressed by MasterCard’s cutting edge technology in digitization, tokenization and authentication of card information.”