According to new insights on global retail payment trends from FIS, a global leader in financial technology, eWallets are now the preferred way for Hong Kong consumers to pay for goods online.
New data from Worldpay’s FIS product suite shows that more than a third (36%) of all online retail purchases made in Hong Kong last year were via digital wallets, followed by credit cards (30%) and bank transfers (12%). In Hong Kong, digital wallets are the preferred payment method for shopping online for clothing and footwear, electrical goods, and health and beauty products, accounting for 36%, 44% and 32% of these purchases respectively.
The data was published in FIS’ 2019 Retail Global Payments Report, an in-depth analysis into payments trends of 16 countries from across the world, representing 80% of online global retail and 60% of instore global retail sales.
Even though credit cards still lead in-store; when it comes to shopping online, Hongkongers have embraced digital wallets like Alipay, WeChat Pay and PayPal, which now account for 36% of all online retail purchases. The report also shows a growing consumer preference for mobile commerce, currently comprises 16% of all online retail in Hong Kong, mobile commerce is expected to grow by 34% by 2022.
Phil Pomford, General Manager for APAC, Global Enterprise eCommerce, Merchant Solutions at FIS, commented: “Consumers in Hong Kong are increasingly choosing digital payments over the more traditional credit-debit card combinations when shopping online, according to our 2019 Retail Global Payments Report.”
The report also highlights Hong Kong’s strong overall retail eCommerce growth, which is expected to grow by more than 18% to almost US$4bn by 2022. During the same period instore sales are also projected to grow by four percent compound annual growth rate (CAGR) to be worth US$70bn, indicating the sustained health of the retail industry in Hong Kong.
Globally, the report data shows that mobile commerce is growing faster than any other channel, particularly in Asia. In Hong Kong, mobile commerce is set to grow at a 14% CAGR over the next four years, while in China and Singapore, mobile commerce currently makes up 81% and 60% of all eCommerce sales respectively. However, card is still king when it comes to payments at the point-of-sale in Hong Kong, with credit cards accounting for 55 % of all instore retail purchases.
“Retailers and merchants in Hong Kong who are looking to succeed when going global must understand the local consumer preferences of the markets they operate in and offer the right mix of payment methods to meet their expectations. It’s not about offering every available option, but rather focusing on those that best suit your business model and match the needs of your customers,” Pomford concluded.