Alternative payment solutions have become the preferred payment method for e-commerce purchases in Hong Kong, accounting for 41.7% of transactions in 2023, according to data from GlobalData. The e-commerce market in Hong Kong grew by 10.5% in 2023, reaching HKD160.3 billion (US$20.5 billion), as more consumers transitioned from offline to online shopping. This market is projected to grow by 13% to HKD181 billion (US$23.1 billion) in 2024.
These solutions are popular due to their simplicity, speed, and convenience. Payment cards followed, making up 38.6% of the total e-commerce transaction value in 2023. Factors contributing to the popularity of payment cards include convenience, cashback offers, discounts, reward points, and installment payment options.
Alternative payments drive Hong Kong growth
Ravi Sharma, lead banking and payments analyst at GlobalData, stated, “The e-commerce sales in Hong Kong have been growing at a robust pace, supported by rising internet and smartphone penetration, a strong online payment infrastructure, and increasing consumer confidence in online transactions.”
Sharma added, “Hong Kong’s e-commerce landscape continues its upward trajectory and is poised for substantial growth between 2024 and 2028, with an anticipated compound annual growth rate of 9% in transaction value, reaching HKD255.7 billion (US$32.7 billion) by 2028. Alternative payment solutions are expected to continue their growth and remain the leading e-commerce payment method in Hong Kong.”
According to the Office of Communications Authority, 96.9% of households in Hong Kong had a broadband internet connection as of April 2024.
Online shopping events such as Black Friday, Cyber Monday, and Singles’ Day have also significantly contributed to the growth of the e-commerce sector in Hong Kong. As the e-commerce market continues to expand, companies are focusing on enhancing their digital payment solutions to cater to the growing demand for alternative payment methods. For instance, Samsung launched Samsung Wallet in January 2023, which allows users to store digital keys and offers various other functionalities.
With the increasing adoption of alternative payment solutions and the ongoing growth of e-commerce in Hong Kong, businesses must adapt to the changing payment landscape to remain competitive and meet the evolving needs of consumers.
