Alternative payment solutions have maintained popularity and emerged as the dominant payment method in Hong Kong's e-commerce market.
GlobalData found that 41.7 percent of all e-commerce payments came from alternative payments, compared to cards and bank transfers.
Hong Kong's e-commerce market has grown and surged by a significant 9.2 percent in 2023, reaching a staggering HKD158.3 billion, a testament to the potential for alternative payment solutions.
With the shift from offline to online purchases gaining momentum, the e-commerce market is projected to grow by 13.1 percent in 2024, reaching HKD179.1 billion. This is a promising outlook for the continued relevance of alternative payment solutions.
"E-commerce sales in Hong Kong have been growing at a robust pace, supported by rising internet and smartphone penetration, robust online payment infrastructure, and increasing consumer confidence in online transactions," said Ravi Sharma, lead banking and payments analyst at GlobalData.
Online shopping festivals such as Black Friday and Cyber Monday have contributed to the overall growth of e-commerce in Hong Kong. The widespread use of the Internet, with 98.2 percent of households having broadband connections, has also helped.
Alternative payments are preferred among other tools used for e-commerce purchases due to their simplicity, speed, and convenience.
Payment solutions, such as Alipay and WeChat Pay, are increasingly used for online purchases, driven by the popularity of Chinese e-commerce sites among Hong Kong consumers. International payment solutions, such as Apple Pay, PayPal, and Google Pay, are also prominent players in the market.
The runner-up was payment cards, which accounted for 38.6 percent of e-commerce transaction value in 2023. This can be attributed to convenience and pricing benefits such as cashback, discounts, reward points, and instalment payment options.
Cash on delivery share is declining and accounts for a mere 6.3 percent of e-commerce purchases due to the growing popularity of electronic payments.
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