Taiwanese card payment operations to grow despite COVID-19: forecast

To make life easier for cardholders, the government has urged banks to offer loan repayments

Taiwan

Taiwanese card payment operations to grow despite COVID-19: forecast. Source: shutterstock.com

According to GlobalData, card payments in Taiwan are expected to increase at a compound annual growth rate of 7.6% and reach $200.2 billion in 2024.

Taiwan plays the main role in promoting the use of cards. The government urged banks to offer deferred loan payments and lower interest rates to ease the cardholders’ life. In return, banks including Citibank, HSBC, Hua Nan Bank, and Land Bank of Taiwan have lowered interest rates on credit card balances. Banks also offer deferred credit card payments.

Although Taiwan has been a cash dominated society, there has been a gradual shift towards digital payments supported by high banked population, growing financial awareness and government push. This is becoming more prevalent now as people are avoiding cash payments for the fear of transmitting the COVID-19 virus
Sowmya Kulkarni, Payments Senior Analyst at GlobalData

The government has launched a “triple incentive voucher” program offering consumer refunds on credit card purchases. Individuals from 38 banks can entry for the program.

If $100.19 is spent between July 15th and December 31st, 2020 through a registered credit card, Taiwanese $66.79 will be returned as cashback to the credit card account. It is expected that this program will help increase the number of card payment transactions.

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