Alternative payments were the most preferred payment method for e-commerce purchases in Hong Kong last year, accounting for 41.7 percent of the market.
According to GlobalData’s 2023 Financial Services Consumer Survey, these methods were increasingly popular mainly because of their simplicity, speed, and convenience.
As Chinese e-commerce sites gain popularity among Hong Kong consumers, alternative payment solutions such as Alipay and WeChat Pay also become more well-known. International payment systems like Apple Pay, PayPal, and Google Pay are also available on the market.
Meanwhile, cash on delivery is declining, accounting for only 6.3 percent of e-commerce sales, owing to the increased popularity of electronic payments.
According to the survey, more than 85 percent of Hong Kong consumers had purchased online in the last six months, with only 5 percent having never shopped online.
Hong Kong’s e-commerce market grew by 9.2 percent last year to US$20.2 billion as more consumers switched from offline to online purchasing. The e-commerce market is predicted to expand by 13.1 percent to US$22.9 billion this year.
“The e-commerce sales in Hong Kong have been growing at a robust pace, supported by rising internet and smartphone penetration, robust online payment infrastructure, coupled with increasing consumer confidence in online transactions,” said Ravi Sharma, lead banking and payments analyst at GlobalData.