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Asean economy enters digital renaissance driven by video commerce and fintech

Published: 07 Jan. 2026, 00:03

Ko Young-kyung

The author is a research professor at Yonsei University Graduate School of International Studies.

On Dec. 17, 2025, a digital bank called Superbank was listed on the Indonesian stock exchange. The shares hit the daily upper limit on their first trading day, pushing its market capitalization past 2.4 trillion won ($1.66 billion), and extended gains over the following two sessions. The value of KakaoBank’s stake rose to 204.4 billion won, delivering a 79 percent return in just two years. Superbank’s rapid rise was underpinned by a strategic partnership with Grab, Southeast Asia’s largest superapp, and Singtel. In only nine months, the bank turned profitable and attracted 5 million customers.

A Singtel booth is pictured at the Asia Fintech Trade Show in Singapore March 21, 2019. [REUTERS/YONHAP]

Given that roughly half of Indonesia’s adult population still lacks adequate access to financial services, the listing was more than a one-off success. It reflected a broader surge in Asean’s digital finance sector, which is reshaping the region’s digital economy. In 2025, Southeast Asia’s digital economy surpassed $305 billion, growing 15 percent year on year across six major Asean markets. Video commerce, digital finance and artificial intelligence have emerged as the main drivers.

Video commerce resembles entertainment as much as shopping. Sellers demonstrate products through live broadcasts, while consumers watch content before making purchases. What accounted for less than 5 percent of total e-commerce in 2022 has grown into a $46 billion market, now representing a quarter of overall transaction value. According to a first-half 2025 report by Momentum Works-Tabcut, Indonesia recorded $6 billion in video commerce sales, overtaking the United States to become the world’s largest market. Thailand followed closely at $5.9 billion.

The number of video commerce sellers in Southeast Asia has surpassed 3 million, up 80 percent from a year earlier. The top 1,000 creators broadcast more than 30 times a month, driving sales momentum. Nine of Indonesia’s top 10 stores operate in beauty and personal care, where short demonstrations can quickly show results and the cost of failure is low. Local brands such as Sekai in home appliances and Bardi in smart home devices have attracted more than 200,000 followers. In Thailand, Seasum leggings became a viral hit on TikTok.

This is often described as a “$6 economy.” Average order values of $6 to $7, combined with frequent small purchases, fuel transaction growth. The top 1,000 best-selling products account for 25 percent of total sales. While traditional e-commerce was built on search, video commerce has evolved into an AI-driven recommendation economy. Platforms analyze viewing time and user reactions to connect consumers with personalized livestreams, reinforcing trust and repeat purchases through real-time interaction.

The payments backbone supporting this shift is national QR payment systems. Eight of Asean’s 10 countries have already begun cross-border integration. As digital payments expand, cash usage has fallen to the high-30 percent range and is projected to drop to the high-20 percent range by 2030. Total digital payment gross transaction value has reached $1.41 trillion, with QR codes and e-wallets surpassing card payments.

Digital lending and installment services, including buy now, pay later options, are also spreading. Consumers now access payments, loans and insurance directly within shopping, delivery and mobility apps. This so-called invisible banking, also known as embedded finance, allows financial services to fade into the background of everyday life. About half of consumers already make payments this way, while loans and insurance are increasingly handled through lifestyle apps. Superbank’s rapid profitability illustrates how such ecosystems can quickly absorb customers previously excluded from formal finance.

AI is the key tool enabling this invisible finance. Across Southeast Asia, AI adoption has moved beyond experimentation. Rather than competing over the latest generative models, companies focus on efficiency and revenue. Delivery and mobility platforms use AI to forecast demand, optimize routes and automate personalized promotions. Grab has reported that AI-based dispatch and route optimization increased drivers’ hourly earnings by about 20 percent, while its in-house AI marketing tools improved ad views by 25 percent and click-through rates by 50 percent.

China and Vietnam launches a bilateral QR code payment service in Hanoi, Vietnam, Dec. 2, 2025. China and Vietnam on Tuesday officially launched a bilateral QR code payment service in the Vietnamese capital Hanoi, marking the rollout of the service in the Vietnamese market. [XINHUA/YONHAP]

AI also plays a central role in gaming. Sea’s gaming arm Garena uses AI for skill-based matchmaking, difficulty adjustment and fraud detection. These tools extend user engagement and raise conversion rates for in-game purchases.

Southeast Asia’s digital economy was once defined by the rivalry between superapps such as Grab and Gojek. More recently, video commerce has internalized payments and logistics, fintech has blended into shopping and entertainment and AI has enhanced user experience at every touchpoint. This represents not just technological adoption but a structural shift toward higher-quality growth.

The pace is expected to accelerate in 2026. Cross-border QR payments and settlements will expand further. Generative AI will shorten content production time for creators, enabling more live broadcasts. Greater financial inclusion is likely to lift middle-class consumption, while the $6 economy could evolve into a $10 or $15 economy. Asean now stands at the starting point of a digital renaissance.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.