Taiwanese payment cards market forecast revealed

Taiwan is among the least affected nations from the COVID-19 pandemic

payment cards market

Taiwanese payment cards market forecast revealed. Source: pixabay.com

GlobalData has revealed that the value of card payments in Taiwan is expected to grow by 5.6% in 2020. The value is forecasted to reach $200.2 billion by 2024 increasing at a CAGR of 7.6% between 2020 and 2024.

The report highlights that the government is imposing comprehensive stimulus measures and easing international travel restrictions. That’s why a rise in consumer spending is expected which will, in turn, drive growth in card payments.

Despite having a high card penetration of 6.5 per person, frequency for card payments remains very low in Taiwan at just 8.5 transactions per card per year in 2019. This is due to a strong inclination towards cash for day-to-day transactions. However, fears of the virus spreading through cash and government measures supporting electronic payments are likely to push card payments
Nikhil Reddy, Banking and Payments Analyst at GlobalData

The government has launched the ‘triple stimulus’ program that allows people to buy $100.19 worth for $33.40 to boost consumer spending.

On spending $100.19 between July 15 and December 31, 2020 via the registered credit card, $66.79 will be credited back as cashback on the credit card account. This program is expected to help boost card payments transactions.

Besides, further e-commerce spend growth is expected to benefit card payments. In fact, credit and debit cards collectively would be accounting for a quarter of e-commerce payments in the country.

We’ve reported that m-commerce is expected to be one of the beneficiaries of the pandemic in Belgium, as bars and restaurants are reopening.

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