42% of e-commerce purchases in Hong Kong made via alternative payments

The e-commerce market in the region grew by 10.5% last year.

Alternative payment methods dominated Hong Kong’s e-commerce market in 2023, making up 41.7% of all transactions, according to GlobalData.

The e-commerce market in Hong Kong grew by 10.5% last year, reaching $20.5b (HKD160.3b). The market is expected to expand by 13% in 2024, hitting $23.1 b (HKD181b).

Ravi Sharma, lead banking and payments Analyst at GlobalData, attributed this growth to increased internet and smartphone usage, strong online payment systems, and greater consumer confidence in online shopping.

As of April 2024, 96.9% of Hong Kong households have broadband internet. Online shopping events like Black Friday and Singles’ Day have also boosted e-commerce.

Moreover, alternative payment methods are popular due to their simplicity and speed. In response, companies are enhancing their payment solutions, such as Samsung’s introduction of Samsung Wallet in January 2023, which includes digital key storage and other features.

Payment cards held a 38.6% share of e-commerce transactions in 2023, valued for their convenience and benefits like cashback and rewards. Cash on delivery, meanwhile, has dropped to 6.3% of transactions.

Sharma forecasts continued growth for Hong Kong’s e-commerce sector, predicting a 9% annual increase in transaction value, reaching $32.7b (HKD255.7b) by 2028. Alternative payment methods are expected to maintain their leading position.