From the emergence of mobile-first commerce to the smooth integration of online and offline channels, the APAC region is redefining what excellent customer experiences look like, according to the Adyen Index: Retail Report 2025, which highlights consumer attitudes and business trends throughout the region.
With 38% of APAC customers using AI to shop, the report’s main focus is the region’s growing adoption of AI. However, APAC retailers are embracing AI with a pragmatic approach, in contrast to other markets where it still feels like an experiment. This year, more than half of Australian retailers intend to invest in AI, not only to innovate but also to tackle real-world issues like fraud prevention, more intelligent marketing, and expedited checkout processes.
Retailers in Hong Kong are using AI to assist control risk and chargebacks at peak times.
However, the opinions of consumers are more divided. For instance, 35% of Australians say they are concerned about AI-driven scams, which is the highest percentage in the world. Furthermore, 43% of respondents think it intrusive when merchants use their browsing and purchase history to provide them tailored advertisements and offers driven by artificial intelligence.
Malaysia has the greatest percentage of consumers who like to purchase both in-person and online, at 57%. Additionally, customers in Singapore and Malaysia are more devoted to merchants who provide flexible options like online-to-store returns (59 and 66 percent, respectively). Even while online shopping is constantly growing, about half of consumers in Australia and Japan still prefer physical stores.
Customers’ loyalty is impacted when they expect firms to take a position on social or ethical problems. In fact, 66% of Malaysian and 54% of Singaporean consumers think they would be more devoted to companies that support charity causes and/or exhibit a strong social purpose.
Merely 37% of consumers in Asia are prepared to pay extra for locally made or ethically sourced goods.
Despite their generosity, APAC consumers prefer to give in their own way; in Hong Kong, Singapore, Malaysia, and Australia, over 70% of consumers donate to charities, compared to the global average of 65%. For instance, 52% of Hong Kong consumers claim that if they are unable to donate in the manner of their choice, they will not donate at all.
There is a clear and long-lasting trend in Asia towards mobile and digital-first business. Thirty-one percent of customers only use contactless payment methods and never carry a wallet. Compared to 30% worldwide, 56% of Hong Kong residents and 52% of Malaysians reported using digital wallets in the previous 12 months.
Customers in the larger APAC area are becoming more and more mobile-first, and they anticipate smooth, cohesive experiences that combine digital and physical elements. The prevalence of super apps like WeChat, Shopee, Gojek, and Grab, as well as advancements in social commerce, demonstrate how Apac is changing the definition of seamless, tech-enabled retail.
