The Taiwan card payments market is expected to grow by 6.8% to reach TWD5.4 trillion ($167.4 billion) in 2025, supported by constant consumer shift towards non-cash payments, forecasts GlobalData, a leading data and analytics company.

GlobalData’s Payment Cards Analytics reveals that Taiwan saw a growth of 19.1% in card payments value in 2023 driven by the rise in consumer spending. The market continued its growth trajectory with 11.5% growth to reach TWD5 trillion ($156.8 billion) in 2024.

However, the current global uncertainty because of the latest US tariffs can pose a challenge to the Taiwan’s overall economic growth, resulting in slowdown in the overall card payments value in 2025.

Ravi Sharma, Lead Banking and Payments Analyst at GlobalData, comments: “Cards are also increasingly being used for payments as consumers steadily replace cash transactions with electronic payments, with payment cards being the major beneficiary. The surge in card payments is attributed to highly banked population, widespread financial literacy, aggressive bank incentives such as cashback and discounts, and a growing preference for digital banking. Efforts by financial authorities to promote cashless payments have further accelerated card adoption.”

The government and financial institutions are actively promoting electronic payments, leading to a steady replacement of cash for every day, low-value transactions. This expansion has been supported by the rise of digital-only banks, the introduction of innovative payment solutions such as mobile and wearable payments, and the proliferation of contactless payment options. Initiatives like the launch of TapPay’s Tap to Pay and the National Credit Card Center’s SoftPOS solution have made it easier for merchants and consumers to embrace digital payments.

Taiwan consumers strongly favor credit and charge cards over debit cards. Taiwanese consumers are drawn to the value-added benefits offered by banks, such as cashback, reward points, loyalty programs, and discounts. The availability of instalment payment facilities and convenient balance repayment solutions further enhances the appeal of credit cards. Notably, credit and charge cards are the primary payment method for e-commerce, accounting for 33% of total transaction value in 2024.

Rising use of contactless payments for public transport payments is also contributing to this. In November 2023, the Taipei Rapid Transit Corporation (also known as Metro Taipei) signed an agreement with Thales Group—a French manufacturer of electrical systems for the aerospace, defense, transportation, and security sectors—and IT solutions provider MiTAC Information Technology to offer multiple contactless payment options to passengers at 120 stations.

Sharma concludes: “Looking ahead, Taiwan’s card payments market is poised for continued expansion. The ongoing shift from cash to electronic payments, coupled with the entry of digital-only banks and the introduction of innovative payment technologies, is expected to further drive the market at a CAGR of 7.7% between 2025 and 2029 to TWD7.2 trillion ($225.3 billion) in 2029.”