One in three (33%) respondents cited multiple verification and authentication as a payment problem
they faced in the last 12 months.
Heaptalk, Jakarta — Vesta, the end-to-end transaction guarantee platform for online purchases, today released the results of the Vesta Online Payment Sentiments survey, which gathered responses from over 4,300 respondents in Singapore, Indonesia, and the Philippines.
False declines, fraud, and poor payment experiences are becoming increasingly common in rapidly growing eCommerce and mCommerce markets such as Singapore, Indonesia, and the Philippines. According to the results of a survey conducted by Vesta, online shoppers continue to place a high priority on safety and security, and they have an unspoken expectation that merchants will put in place the necessary safeguards. Surprisingly, shoppers also rank the inconvenience of multiple verification and authentication as the most difficult payment challenge.
“The results of this survey demonstrate an obvious and urgent need for sophisticated solutions that provide better protection against fraud, drive higher” Said, Shabab Muhaddes, General Manager Asia Pacific of Vesta.
A frictionless payment experience can help build brand preference, increase revenue, and more
The survey found that nearly half (47%) of respondents had payment issues in the last year.
Multiple verification and authentication is the top payment issue for one in three (33%) respondents, followed by declined payments without valid reasons for one in five (22%) online shoppers surveyed. Customers who already buy from multiple brands2 may be tempted to shop at another site that offers a more seamless online shopping experience. Almost half (47%) of online shoppers in the three countries would abandon an eCommerce site if a purchase went wrong. More than half (54%) of those who had problems paying for an online purchase would warn family or friends.
With an increasingly tech-savvy population where people look for security in positive reviews, the survey also found that approximately (69%) or around 7 in 10 online shoppers rely on past reviews from previous buyers to determine if a site is secure to purchase from. This underscores the impact that a negative payment experience can cause on the merchant’s business in a competitive eCommerce industry.
The urgent need for mobile-first protection needs to be addressed
Southeast Asia is the fastest-growing mobile wallet market globally4, with Indonesia and the Philippines poised for continued hypergrowth in mobile payments over the next five years.
7 out of 10 (60 %) of those surveyed in these two countries stated that they prefer to pay with e-wallets, which can be attributed to a large unbanked population and low credit card penetration in the countries.
However, among those who have experienced payment issues with e-wallets in the last 12 months, 1 in every 10 (11 percent) respondents from the two countries reported that their payment was declined without a valid reason, resulting in a revenue loss for the merchants involved. 1 in every 5 (20 percent) online shoppers reported experiencing payment friction as a result of multiple verification and authentication steps, which was identified as a top pain point.
Key to balancing identity verification and frictionless shopping
Notably, three in five (57%) online shoppers in Indonesia share retail accounts with their friends or family, putting them at higher risk of fraud methods, such as account takeover.
This is concerning given Indonesia is the largest eCommerce market in Southeast Asia, estimated to grow to US$83 billion in 2025. In Southeast Asia alone, one in three have experienced online fraud last year, with 71 percent who experienced identity theft, 66 percent from phishing activities, and 63 percent from account fraud.
“Indonesia has immense potential for significant growth in the digital economy. While more consumers have shown willingness towards utilizing e-wallets as a method of payment, there is still a sizable number who exhibit reluctance; likely stemming from fear and lack of trust towards digital payments in general. We believe that by working closely with merchants to strengthen their fraud identification capability, we will improve the overall customer journey while maintaining transaction security and reliability. In turn, this will encourage more to benefit from opportunities offered by the fast-growing digital economy,” said Oemar Ahmad, Vesta, Country Director, Indonesia.
Implementing a robust, end-to-end fraud protection solution is the most cost-efficient way to prevent fraud
Fighting fraud is complex and expensive, that is why it is so crucial for eCommerce merchants to employ sophisticated solutions backed by machine learning to offer protection against fraudulent cases, and a transaction guarantee platform for a smooth payment experience for online shoppers.