How Gen-Z and Millennials Are Shaping Social Commerce in Asia

Globally, social commerce (s-commerce) is accounting for 17.11% of total online sales in 2025. Asia stands at the forefront of the social commerce revolution, driven by the digital-first lifestyle of Gen-Z and Millennials. Particularly, Southeast Asia is leading the way in social commerce, with social media penetration rates ranging between 68.9% and 91.7% among the largest Southeast Asian countries. For merchants, understanding these demographics and their preferences isn’t optional; it’s essential for remaining relevant in a fast-evolving payments and e-commerce landscape.

With Gen-Z set to make up a quarter of Asia’s population by 2025 and Millennials not far behind, these groups are quickly becoming the region’s most influential shoppers. Their digital fluency, value-driven purchasing behaviour, and expectations for seamless, secure payment experiences are reshaping the future of commerce across Asia. 

Digital-First Consumers Redefining the Customer Journey 

Asia is home to nearly 60% of the world’s Gen-Z population. This generation has grown up with instant access to technology and information, making them not just confident online shoppers but also discerning ones. They expect more than just a product; they seek authenticity, personalisation and values alignment in their shopping experiences. 

Unlike previous generations, Gen-Z in Asia often benefit from lower living costs, 73% still live with their parents and consequently have more disposable income. In fact, the region has seen a 25% rise in Gen-Z luxury purchases over the past three years. But they’re selective about how they spend. Environmental sustainability, social responsibility, and a brand’s online reputation all play major roles in purchase decisions.

Social Media as the New Shopping Mall

Social media platforms have evolved into essential channels for commerce. As of March 2024, more than 55% of Asia’s population used Facebook, followed by YouTube (21.86%) and X (8.22%). In Southeast Asia alone, social media penetration ranges from 68% to 91%, with 60% of Gen-Zs in Southeast Asia spending more than six hours on their mobile phones each day. For Gen-Z and Gen Alpha, platforms like TikTok and Instagram are not just for entertainment – they’re where product discovery begins. 

This has given rise to social commerce – the merging of social media and e-commerce. Whether through influencer-led product recommendations or in-app purchases, young consumers are turning to their social feeds to browse, consider, and buy. Merchants must adapt to ensure they meet consumers on these platforms with seamless and trustworthy payment experiences. 

Trust: The New Currency of Commerce

Today’s digital shoppers design trust differently. It’s no longer just about data security or fraud prevention; it’s about delivering consistent, human-centric experiences across all platforms. From mobile wallets to chat-based customer service, every touchpoint must reinforce reliability and ease of use. Payment experiences need to work seamlessly across super apps, e-commerce sites, messaging platforms, and social networks. The ability to pay instantly, securely, and with the method of choice—whether it’s a mobile wallet, virtual card, or even CBDC—can be a major trust builder.

However, the path isn’t linear. Some markets, such as Indonesia, have taken steps to regulate social commerce platforms like TikTok Shop to protect users and small businesses. These moves highlight the importance of not only innovating but doing so responsibly and inclusively.

The Rise of Omnichannel, Mobile-First Experiences

Payment preferences among Asia’s young consumers are firmly mobile-first and digitally exclusive. Online payment methods, which are popularly used for security and convenience across multiple platforms, are imperative. For instance, in Singapore, 68% of Gen-Z users prefer PayNow, with GrabPay used by 29%. Notably, over 30% of Gen-Z in Singapore only carry their phones when shopping, surpassing the global average of 21%. 

The shift, driven by the young generations, demands omnichannel commerce. Whether through e-commerce platforms, social media, messaging apps, or super apps, payment experiences must be frictionless, instant and integrated. Consumers want to see the same payment methods and options available to them across all channels of purchase, from websites to social media. Not only is the diversity of payment methods likely to increase conversions, but also the availability of payment options. Payment by links is a quick and convenient way to complete a transaction, as well as a flexible option for subscription payments and buy now, pay later platforms. And as Gen-Z embraces AI-powered personalisation, merchants have a golden opportunity to leverage data-driven insights to tailor content, recommendations, and offers. 

What’s Next? Emerging Trends Shaping Payments in Asia

The influence of Gen-Z and the emerging Gen Alpha population will continue to accelerate innovation in the payments ecosystem. These younger consumers are already showing interest in: 

• Cryptocurrency and decentralised finance (DeFi)
• Subscription payments, payment links and Buy Now, Pay Later (BNPL) models for affordability and flexibility 
• Peer-to-peer (P2P) payments for shared spending 
• Hyper-personalised shopping journeys, guided by AI and analytics. 

These trends signal the need for merchants to partner which fintech providers who can deliver agile, secure and scalable payment infrastructure. 

Key Takeaways for Merchants:

• Be present where they are: From TikTok to WhatsApp, social and messaging platforms are integral to Gen-Z’s shopping journey. 
• Building trust through experience: Secure and consistent experiences across platforms build long-term brand loyalty. 
• Personalisation is powerful: Leverage data and AI to tailor experiences across every touchpoint. 
• Stay ahead of the curve: Be ready to support new payment technologies like crypto, mobile wallets, and BNPL solutions. 

As Asia continues to lead global digital innovation, merchants must adapt to meet the rising expectations of Gen-Z and Millennials. These generations aren’t just shaping trends, they’re setting the standard for the future of commerce. 

The future belongs to brands that can offer authenticity, accessibility, and seamless digital experiences across every channel. Are you ready?