1CONTENTS2FOREWORD3WIRECARDVIEWPOINT4RESEARCHSCOPE5HIGHLIGHTS:THEHONGKONGCONSUMER6THEHONGKONGPAYMENTSMARKET13CONSUMERATTITUDESTOWARDSDIGITALPAYMENTS18BARRIERSIMPACTINGDIGITALWALLETUSAGE24THEFUTUREOFPAYMENTSINHONGKONG2THEDIGITALPAYMENTSLANDSCAPEINHONGKONG2019havebeenimpressedbythevarietyofpaymentmethodsthatareusedhere.IntheUK,thereisnoequivalenttotheconveniencethattheOctopuscardoffers,andPayPalisthemaindigitalwalletthatisused(alegacyofwhenthatwastheonlywaytopayforpurchasesoneBay).ContrastthistoHongKong,wheretherearecurrentlytendigitalwalletsthatareaccepted–tovaryingdegrees–intheretailsector.Furthermore,thisresearchhasuncoveredthatnearlynineintenconsumershaveusedadigitalwalletinthepastyear.Thisunderlinesthatthereisagenuinewillingnesstoengagewiththesenewpaymentmethods,whichhaveappearedonthemarketsincetheHongKongMonetaryAuthorityissueditsfirst'storedvaluefacilities'(SVF)licensesin2016.Ifthereisalessontobelearntfromthisreport,itisthatpaymentpreferencesinHongKongarevariedandretailersneedtoembracethisdiversityintheirpaymentstrategies.Forinstance,retailerstargetingyoungerconsumersshouldconsiderofferingacashondeliveryoptionduetolowcreditcardownership,whileacceptingdigitalwalletpaymentsisamustforbusinessesoperatinginthefoodretailsector.Retailersshouldalsokeepinmindthattheneedforconvenienceisamajordriverofpurchasingbehaviour.ThepatienceofHongKongerswithlongqueuesiswearingthin,andspeedingupthecheckoutprocessisexactlywhysomeshoppersareoptingfordigitalwalletpayments.Atthesametime,consumerswanttoengagewithself-checkouttechnologies,orskipthequeuealtogetherthroughmobiletills.IwouldliketoextendathankyoutoWirecardforpartneringwithusonthisstudyaswellasourresearchpartnerRakutenInsight.Lastbutnotleast,aspecialthankstoallthoseindividualsweinterviewedatGooglePay,OctopusCards,TNGFinTechGroup,BBPOSMerchantServices,ZaloraandSKYMART.Withoutyourhelp,thisreportwouldnotbepossible."HongKongislaggingbehindothermarketswhenitcomestotheadoptionofnewpaymentmethodssuchasdigitalwallets."Thishasbeeno...
