Dialogue with HKTDC: How payment platforms help Hong Kong SMEs tap into the ASEAN market

As many Hong Kong SMEs look to expand into ASEAN, secure and reliable payment solutions are crucial for staying competitive in the eCommerce space. In an interview with HKTDC, Nick Chiu, Head of Sales, SME & Growth at Airwallex Hong Kong, shared insights on how Hong Kong SMEs can navigate cross-border payments while tapping into the US$100 billion ASEAN market.

ASEAN consumers’ preferred payment methods 

While credit cards remain the primary payment method in ASEAN, the rapid growth of the digital economy and the increasing adoption of smartphones have driven the rise of digital wallets. Popular options such as GrabPay, Alipay, PayPal, and Apple Pay are gaining traction, and several local payment providers are also expanding their presence.

Additionally, the introduction of instant payment systems has made account-to-account (A2A) payments more common. 

Despite the growing number of digital payment options, cash on delivery (COD) remains a widely preferred payment method in ASEAN, due to its simplicity and convenience.

Navigating the complexity of cross-border payments in ASEAN

The diverse cultures and varying payment preferences across ASEAN present a challenge for businesses aiming to expand across multiple markets in the region. With few universal payment solutions, businesses must offer a variety of payment options to meet the needs of local consumers. This can be both costly and complex for SMEs.

According to Airwallex's latest research, approximately 80% of online shoppers worldwide abandon their purchases when they cannot choose their preferred payment method at checkout. This highlights the importance of offering flexible payment options to boost conversion rates and meet customer expectations.

Cross-border settlement is another challenge for Hong Kong eCommerce merchants. In addition to product sales, there are other costs such as shipping and advertising fees. 

While opening a local bank account in ASEAN can simplify the payment process, some emerging markets are still developing their banking systems, which can lead to delays. In certain Southeast Asian countries, international transfers can take anywhere from three to six business days to process.

Moreover, currency fluctuations, exchange rate risks, and high transaction fees also add complexity to the process of entering the ASEAN market.

Tap into the ASEAN market with ease through Airwallex

As a leading global payment and financial platform, Airwallex provides comprehensive, one-stop payment solutions to help fast-growing SMEs streamline cross-border payments and simplify international transaction management.

1. Streamline cross-border transactions

Airwallex partners with popular eCommerce platforms like Shopify, allowing businesses to easily integrate over 160 payment methods. This ensures seamless transactions across multiple markets, enhancing payment efficiency and meeting local consumer preferences.

Additionally, with Global Accounts, SMEs can open local and foreign currency accounts in over 60 countries, eliminating the need to set up a separate bank account in each operating market. 

Businesses can transfer funds in over 60 currencies to more than 200 countries, avoiding unnecessary conversion fees and mitigating foreign exchange risks.

2. Accelerate refund processes

As SMEs expand into ASEAN, having a clear and efficient refund policy is crucial for building consumer trust, avoiding disputes, and protecting brand reputation. 

Airwallex’s payment solutions support seamless refund processing, simplifying management and reducing operational costs.

3. Fast account opening

Airwallex leverages artificial intelligence to assess corporate compliance, significantly speeding up the account opening and onboarding process. 

Businesses can open an account with Airwallex in as little as 48 hours.

Success stories: Ginger and Grams(28)

Ginger, a Hong Kong fashion brand, underwent a digital transformation during the COVID-19 pandemic. With Airwallex, Ginger was able to open a global Business Account in just 48 hours and start transacting in Singapore, offering local consumers their preferred payment methods. By using Airwallex’s Business Account, Ginger can now receive and settle payments in local currencies, reducing exchange rate risks and saving on conversion fees.

Another success story comes from Grams(28), a Hong Kong-based eCommerce brand specialising in high-end Italian leather goods, operating across the United States, Europe, and Singapore. Thanks to Airwallex, Grams(28) can easily track cash flow, international transactions, and expenses in real time, simplifying cross-border business management. In just one week, Grams(28) was able to integrate Klarna’s Buy Now, Pay Later (BNPL) option into their platform. Since its launch, BNPL has accounted for 20% of their sales.

Tap into the US$100 billion ASEAN eCommerce market with Airwallex

Open an account with Airwallex today and discover how our one-stop payments and financial solution can help you tap into ASEAN's booming eCommerce market. Interested to learn more about ASEAN shoppers' buying habits? Download the eGuide here.