Alternative payment solutions are the preferred payment method for e-commerce purchases in Hong Kong (China SAR), collectively accounting for 41.7% share in 2023, reveals GlobalData, publishers of EPI.
GlobalData’s E-Commerce Analytics reveals that the e-commerce market in Hong Kong grew by 10.5% in 2023 to reach HKD160.3bn ($20.5bn), as increasing number of consumers shifted from offline to online purchases. The e-commerce market is estimated to grow by 13% to reach HKD181bn ($23.1bn) in 2024.
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Ravi Sharma, Lead Banking and Payments Analyst at GlobalData, comments: “The e-commerce sales in Hong Kong have been growing at a robust pace, supported by the rising internet and smartphone penetration, robust online payment infrastructure, coupled with increasing consumer confidence in online transactions.”
According to the Office of Communications Authority, 96.9% of the households had broadband internet connection as of April 2024. Furthermore, online shopping festivals such as Black Friday, Cyber Monday, and Singles’ Day have also contributed to the overall growth of e-commerce in Hong Kong.
Among the various tools used for e-commerce purchases, alternative payments are the most preferred
They collectively accounted for 41.7% share in 2023, a trend that is prevalent in many Asian markets. This is mainly owing to factors such as simplicity, speed, and convenience.
Cash on delivery share is on decline and accounted for a mere 6.3% due to the growing popularity of electronic payments
To capitalise on market opportunities, payment solutions providers are rolling out new features designed to boost user engagement and adoption. For example, in January 2023, Samsung introduced Samsung Wallet, which combines the existing features of Samsung Pay with additional functionality. In addition to mobile payments, users can also store and access digital keys, boarding passes, and essential documents such as ID cards and driving licenses within the wallet.
Alternative payment solutions are followed by payment cards, which accounted for 38.6% of the total e-commerce transaction value in 2023. This can be attributed to convenience, pricing benefits such as cashback, discounts, and reward points as well as instalment payment options available with these cards.
Sharma concludes: “Hong Kong’s e-commerce landscape continues its upward trajectory, poised for substantial growth between 2024 and 2028, with an anticipated compound annual growth rate of 9% in transaction value to reach HKD 255.7 billion ($32.7 billion) in 2028. Alternative payment solutions are expected to continue their growth and lead e-commerce payments in Hong Kong.”
