Alternative payments is top choice for e-commerce purchases in Hong Kong

It accounts for 41.7% share in 2023.

Alternative payments are the most preferred payment method for e-commerce purchases in Hong Kong (China SAR), with a 41.7% share in 2023, revealed by GlobalData.

Payment cards followed, making up 38.6% of the payment methods used, on the back of its convenience and the pricing benefits its offers.

Benefits include cashback, discounts, and reward points as well as installment payment options.

Cash on delivery continued to decline and made up just 6.3% of all payments made.

“The e-commerce sales in Hong Kong have been growing at a robust pace, supported by the 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. 

According to the Office of Communications Authority, 96.9% of the households had broadband internet connections as of April 2024. 

Online shopping festivals such as Black Friday, Cyber Monday, and Singles’ Day have also contributed to the overall growth of e-commerce in Hong Kong.

“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% in transaction value to reach HKD 255.7 billion ($32.7 billion) in 2028,” Sharma added. 

The e-commerce market in Hong Kong grew by 10.5% in 2023 to reach HK$160.3b as an increasing number of consumers shifted from offline to online purchases. 

The e-commerce market is estimated to grow by 13% to HK$181b in 2024.