Hong Kong – A new study by data analytics and consulting firm GlobalData revealed that alternative payment solutions have become the preferred method for e-commerce transactions in Hong Kong, making up 41.7% share in 2023.
According to the report, the country’s e-commerce market saw 10.5% growth in 2023, reaching a total of HK$160.3b (US$20.5b). This growth is attributed to the increasing number of consumers that shifted from offline to online purchases.
In 2024, the e-commerce market in the same country is anticipated to increase by 13% to reach HK$181b (US$23.1b).
Moreover, the Office of Communications Authority recorded 96.9% of Hong Kong households own broadband internet by April 2024. Online shopping festivals, including Black Friday, Cyber Monday, and Singles’ Day, have become further instrumental in their e-commerce growth.
Data from the findings also found that the gaining popularity of alternative payment methods is primarily because of their simplicity, quick processing, and overall convenience. As a result, payment solution providers started launching features that capture user engagement and adoption.
On the other hand, payment cards followed closely behind, with 38.6% of the total e-commerce transaction value in 2023. This popularity can be associated with the convenience, pricing benefits, and reward points they offer.
Interestingly enough, the share from cash on delivery decreased to 6.3% of transactions, due to the growing preference for electronic payments.
Speaking about the findings, Ravi Sharma, lead banking and payments analyst at GlobalData, shared, “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.”
Sharma further noted, “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.”
