Hong Kong Financial Technology Epayment

The use of e-wallets is quickly gaining popularity as the top payment option for Asian consumers and is already the predominant payment method in China and India. The recent release of data from Worldpay’s Annual Global Payments Report showcases a positive trajectory for the e-wallet industry in Asia-Pacific, with an uptick in usage and anticipated growth in the coming three years.  

The 12% decline year-over-year in 2023 in cash usage is driving e-wallet adoption, as consumers increasingly shift to e-wallets for point-of-sale transactions. This adoption of e-wallets in Asia is being driven by efforts to link domestic QR code payment systems, making them more appealing to consumers and merchants. QR code interoperability allows for seamless cross-border transactions without currency exchange concerns. Real-time payment systems established by central banks and bank associations in the Asia Pacific region are facilitating the widespread use of QR code payments.  

In 2023, credit cards were the preferred payment method in countries like Australia, Hong Kong, Japan, New Zealand, Singapore, South Korea, and Taiwan. However, by 2027, digital wallets are projected to surpass credit cards in many APAC countries, with significant growth expected in e-commerce and in-store purchases.

U.S. companies wishing to enter this market should: (1) understand the market and your target audience; (2) obtain necessary licenses; (3) ensure data privacy and security; (4) look for local partners (with the U.S. Commercial Service’s help) and (5) integrate with local systems using trusted partners.

If you are a U.S. fintech company that specializes in payments and are interested in leveraging the rapid growth of e-wallets in Hong Kong, please contact our office at office.hongkong@trade.gov.