It should come as no surprise in 2025 that e-commerce has become the predominant method for consumers to shop and buy goods, but what factors are fuelling the sector’s growth in regions and markets that will see it exceed its already staggering volumes? The answer lies with cross-border payments.
Guillaume Tournand, VP of Growth at Worldline, writes for Payment Expert on some of the markets adapting best to e-commerce cross-border payment development, how to integrate into these markets and where the next stage lies in its future.
The increase in cross-border payments is changing the established norms of e-commerce, granting high-growth markets a greater opportunity to compete. E-commerce is an environment traditionally dominated by the US and Europe, but with the rise in e-commerce in Asia and Latin America over the last twenty years, the environment is prospering.
Worldline’s research has followed these developing regions and found that they are not only catching up but surpassing their Western counterparts in their rates of growth. The ease and efficiency of cross-border transactions are at the heart of this change, enabling businesses and consumers to engage seamlessly across vast distances. This evolution has opened a wealth of new opportunities while presenting unique challenges in digital commerce.
In this article, we explore these dynamic changes and analyse how they are set to redefine the future of global e-commerce, and share the insights that have led the development of Worldline’s own solutions.
Centres of Rapid – Commerce Growth
It is no secret that Asia and Latin America have become increasingly influential in the global e-commerce sector, demonstrating significant growth and technological advancement.
Countries such as South Korea, India, Brazil, China, and Türkiye are key players in this digital transformation, with an approximate e-commerce growth rate of 30%. This rapid expansion has primarily been driven by the growing acceptance and usage of e-commerce and mobile commerce, coupled with high mobile usage rates, enhanced internet access, and efficient digital payment systems that facilitate smoother cross-border transactions.
The inclination towards mobile-first shopping experiences among consumers in these markets has notably contributed to the surge in e-commerce growth. High mobile device penetration allows for greater accessibility and convenience, enabling consumers to shop online more frequently and efficiently. Enhanced internet infrastructure and increasing smartphone ownership play pivotal roles in supporting this trend, making it easier for businesses to reach a broader audience.
Efficient digital payment systems have been a game changer, eliminating barriers traditionally associated with online transactions. These advances have encouraged consumers to engage in international e-commerce, fostering a more interconnected and globalised marketplace.
Meanwhile, established markets, such as the US and Europe, continue to experience steady e-commerce growth, maintaining an annual increase of about 7-12%. Despite their mature infrastructure, the growth rates in these regions differ from the rapid expansion seen in Asian and Latin American markets.
This difference underscores the diverse nature of the global e-commerce landscape, where each region contributes uniquely to the overall trends and growth of the industry.In contrast, the rapid expansion in regions like Asia and Latin America signifies untapped potential and the evolving digital landscapes in these areas.
This diversity underscores the importance of both established and rapidly evolving markets in contributing uniquely to the global e-commerce ecosystem. It highlights how varied stages of e-commerce development across the world emphasise the significance of understanding local market dynamics, consumer behaviour, and technological infrastructure to navigate and capitalise on the opportunities within global e-commerce.
Discovering New Market Opportunities
These fast growing economies are not only growing rapidly but also hold substantial potential for future expansion. The Bank of England predicts that the cross-border payments market could soar to $250trn by 2027, highlighting the tremendous opportunities within these high-growth regions. Latin America’s e-commerce sector, for instance, is currently valued at $295bn and is growing at an impressive rate of 30%, demonstrating the region’s increasing digital connectivity and rising consumer spending power.
In Asia, fintech investments are flourishing, particularly in India, where the fintech industry is projected to reach $2.1trn by 2030. This surge is largely fuelled by innovations in international payment systems, which are making cross-border transactions simpler and more efficient. These trends indicate that these regions are becoming increasingly attractive for cross-border e-commerce ventures.
As technology advances and consumer habits shift towards online shopping, these markets are poised to play a crucial role in the global e-commerce landscape. Consequently, businesses should focus on understanding these markets and developing strategies tailored to capitalise on the opportunities they offer.
How To Integrate Into These Markets
Expanding into high-growth markets such as Asia and Latin America requires an astute understanding of local payment landscapes and tailored payment strategies to meet regional demands.
Businesses must align with local consumer behaviours: in Asia, where mobile-first shopping prevails, this means developing mobile-optimised e-commerce platforms with cross-border payment solutions, while in Latin America, the focus should be on secure digital payment solutions for a growing middle class comfortable with online transactions.
Adapting to varied payment preferences is crucial, as China favours digital payments, India uses a mix of digital and cash transactions, and Latin America often prefers cash despite a trend towards digital payments.
To navigate a region’s local payment markets, it is crucial to adapt Alternative Payment Methods (APMs) which accommodate local payment preferences and enhance approval rates. In addition, it is important to adhere to regulatory standards and manage costs and foreign exchange risks associated with accepting international payments.
The Next Stage of Cross-Border E-Commerce
The future of cross-border e-commerce is intricately influenced by a convergence of factors, encompassing technological progress, shifting e-commerce penetration levels, and the transformation of global payment mechanisms.
Technological advancements have notably streamlined international shopping experiences, with a substantial 57% of e-commerce consumers engaging in cross-border transactions and in recent times, a surge largely catalysed by the pandemic, resulting in a notable 43% uptick in consumer openness towards cross-border commerce.
Regions such as South Korea, anticipated to witness a burgeoning e-commerce market valued at $242bn by 2025, are poised to capitalise on this phenomenon, particularly through avenues like mobile commerce and sophisticated payment infrastructures.
Conversely, markets like Indonesia, though currently displaying lower penetration rates, harbour immense growth prospects by offering customised solutions and enhancing their payment ecosystems.Notably, with merely 20% of retail expenditure occurring online as of 2022 according to eMarketer, the sector stands on the cusp of expansive growth and evolution.
The global e-commerce landscape is rapidly evolving, with established and fast growing economies driving growth and shaping cross-border commerce. Businesses must understand regional dynamics to capitalise on opportunities and overcome challenges in high-growth markets.
As technology advances and consumer habits change, cross-border e-commerce will continue expanding, making it crucial for businesses to adapt and remain competitive.
Success in these diverse markets requires thorough market analysis and tailored strategies, along with agility to navigate the challenges and opportunities of high-growth markets.
