Alternative payments dominate Hong Kong's e-commerce in 2023 

Over 85% of consumers in Hong Kong shopped online in the past six months.

Alternative payment solutions emerged as the top choice for e-commerce transactions in Hong Kong in 2023, accounting for a 41.7% share, according to GlobalData.

The e-commerce sector in Hong Kong witnessed a growth of 9.2% in 2023, reaching $20.2b (HKD158.3b). The growth is attributed to the increasing number of consumers transitioning from offline to online shopping. The trend is also expected to continue with a projected growth of 13.1%, reaching $22.9b (HKD179.1b) in 2024.

“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.

As per GlobalData's 2023 Financial Services Consumer Survey, over 85% of consumers in Hong Kong shopped online in the past six months, with only 5% reporting no online shopping activity.

Amongst the various payment methods used for e-commerce transactions, alternative payments, including Alipay and WeChat Pay, were the most preferred, capturing a 41.7% share in 2023. This is attributed to the simplicity, speed, and convenience offered by these methods.

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Following alternative payments, payment cards accounted for 38.6% of the e-commerce transaction value in 2023, offering benefits like cashback, discounts, reward points, and installment payment options.

On the other hand, the share of cash on delivery payments witnessed a decline, representing only 6.3% of e-commerce purchases, reflecting the growing preference for electronic payments.

“Hong Kong’s e-commerce landscape continues its upward trajectory, poised for substantial growth between 2024 and 2028, with an anticipated compound annual growth rate of 9.1% in transaction value to reach $32.4b (HKD253.7b) in 2028,” said Sharma.

He added that alternative payment solutions are projected to maintain their lead in Hong Kong's e-commerce payment scene.

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