Cash remains the preferred method of consumer payment in Taiwan, accounting for more than three quarters of total payment transaction volume. Consumers in Taiwan have a strong inclination towards cash for day-to-day transactions despite the gradual rise in electronic payments. Government of Taiwan has been promoting electronic payments through various initiatives, and the necessary payment infrastructure is in place. But ATMs are ubiquitous, the retail environment is highly competitive, and the dense urban environment lends itself to the use of cash.
Debit card penetration in Taiwan stood at 413.8 cards per 100 individuals in 2017, the highest rate among its regional peers. However, debit card usage is mostly restricted to ATM cash withdrawals, which record frequency of use (transactions per card per year) 10 times higher than for POS transactions. This is because consumers prefer cash for low-value transactions at retail outlets, which is one of the challenges hindering debit cards usage.
Taiwanese consumers have been familiar with contactless payments since the introduction of the EasyCard subway transit cards in 2002, and awareness is very high. In addition to contactless cards, mobile contactless payments are also gaining prominence, supported by the launch of mobile payment solutions such as Apple Pay, Android Pay, and Samsung Pay.
Taiwan’s e-commerce market is one of the fastest growing in Southeast Asia, and is driven by the rise in internet and smartphone penetration. The e-commerce market is acting as a driver for electronic payments market growth, owing to the availability of multiple payment options such as debit and credit cards, card on delivery, bank transfers, and digital and mobile wallets.
The report "Payments in Taiwan 2017: What Consumers Want?", examines the consumer payments market in Taiwan, considering payment cards, online payments, P2P payments, and newer payment technologies such as mobile wallets and contactless.
Specifically, this report allows to:
- Analyzes consumer attitudes to financial services by lifestage.
- Analyzes the major payment card types in terms of both card holding and usage.
- Identifies the major competitors in card issuing and how their position in the market has changed over the last five years.
- Considers consumer attitudes towards P2P tools, mobile payment tools, and contactless cards, and how companies in Taiwan are deploying these tools to meet customer needs.
- Explores the online payment market in Taiwan by merchant type and payment tool, as well as providing a five-year forecast for the development of the market.
- Consumers in Taiwan have a strong inclination towards cash for day-to-day transactions despite the gradual rise in electronic payments.
- There is significant future growth potential in e-commerce, which will be driven by an increase in mobile internet penetration as well as the emerging middle class.
- Taiwan’s payment acceptance network is still underdeveloped, with only 1 point of sale terminal per 195 people and 1 ATM per 868 people in 2017.
- Understand the key facts and figures in the consumer payments market in Taiwan.
- Learn what trends drive consumer behavior at the macro level and plan your strategy accordingly.
- Find out what products the major competitors are launching in the market.
- Discover consumer sentiments towards various payment tools in the Taiwanese market and use this knowledge to inform product design.
Payments Infrastructure & Regulation