Bank transfers, digital wallets spur e-commerce market

The two methods are rising at CAGR of 12% and 11%, respectively.

Hong Kong’s e-commerce market is set to grow 40% by 2023 on the back of bank transfers and digital wallets, an FIS report said.

Bank transfers and digital wallets are rising at CAGR of 12% and 11%, respectively. The use of digital wallets for in-store purchases is growing 22% annually and is set to account for 23% of all in-store purchases by 2023.

Credit cards remain the preferred payment method in the city as prepay methods, debit cash and cash on delivery are declining.

However, unlike Japanese shoppers, Hong Kong buyers have yet to show interest in buy now pay later (BNPL) methods, which may be attributed to the fact that they already possess so many credit and prepaid cards, the report said.

Hong Kong’s new payment trends are similar to that of Singapore but differ from the Mainland where shoppers mostly opt for digital or mobile wallets, FIS concluded.

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