Study: Majority of HK consumers look for more inclusive payment system

Hong Kong consumers are looking for a more inclusive payment system that offers diverse payment options for them to choose when and how they want to pay, no matter for small everyday spending or big-ticket items, according to the latest study by Visa.

Conducted by Visa, the "Consumer Payment Attitudes Study 4.0: Payments Outlook" has surveyed 700 Hong Kong consumers across different ages, income levels and districts from September to October last year, studying the evolving payment landscape in Hong Kong, consumers’ spending preferences, as well as trends in loyalty, ESG and the metaverse.

Among all payment methods, the study showed that the usage of card payments was dominant in Hong Kong at 91%, led by contactless credit/debit payments (67%) and contactless storedvalue cards (65%). Mobile wallets are also on the rise at 79%, with mobile contactless and QR code payments respectively used by at least 55% of consumers in Hong Kong. Meanwhile, 82% of Hong Kong still currently use cash as a payment method.

The study also showed that over two-thirds (67%) of respondents expressed that they should be able to use any payment option regardless of merchant and ticket size. However, industries such as public transport, wet markets and small merchants appeared to be lagging behind on payment optionality while mobile contactless adoption in insurance services, healthcare services and education can be further improved.

“From small everyday purchases to large discretionary spending, people are looking for greater convenience, and it is crucial for businesses to embed seamless payments that benefit not only local residents but also travellers from around the world. After all, creating an inclusive payment system and augmenting the digital-first experience pave the way for more businesses to thrive in the era of digital commerce, thereby improving the lives and livelihoods of all people,” said Paulina Leong, head of client relationship management, Visa Hong Kong & Macau.

In terms of loyalty, ESG and the metaverse, 60% of respondents try to maximise their loyalty rewards and were highly conscious about tracking their loyalty redemption portfolio. Loyalty programmes from multi-brand/ cross sector outlets (69%), e-wallet companies (66%), online marketplaces (65%) and credit/ debit card issuers (62%) top the chart, followed by airline companies (56%) and shopping centres/department stores (53%). When it comes to value propositions for new credit card programmes, aside from the joys of shopping (51%) and unique and quality dining experiences (39%), consumers are also drawn to programmes that emphasise work-life-leisure balance (43%) and health or well-being (36%).

Additionally, nearly half (48%) of respondents are either actively looking or even willing to pay slightly higher to rewards brands/companies that support sustainability. 58% of consumers were interested in using eco-friendly payment solutions such as cards made of sustainable materials. 58% of them are also equally more likely to shop for more environmentally-friendly items if they are made aware of how much carbon footprint their purchases generate.

Don't miss: Visa launches eco-friendly payment solutions in Asia Pacific

One in three Hong Kong consumers are either quite familiar with or have invested in cryptocurrency, stablecoins, non-fungible tokens (NFTs), central bank digital currency (CBDC) and the metaverse. Consumers’ opinion on brands or businesses that enter the metaverse is equally positive (41%) and neutral (45%). Many are curious about the metaverse but only 8% of them have experienced it. Close to 70% of consumers want to learn more and experience the metaverse for themselves.

“The world has evolved into a 24/7 marketplace, where every touchpoint – from in-store to eCommerce platforms, lifestyle apps, social media, digital assets, the metaverse, and more – is an opportunity for commerce to happen. It’s important for businesses to understand consumer behaviours and pivot their strategies to cater to consumers’ digital habits and emerging needs,” Leong added.

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