The Taiwanese card payments market will grow by 6.2% in 2022 to reach TWD3.5 trillion ($127.5 billion), as the country’s economy gradually recovers from the COVID-19 pandemic, forecasts GlobalData, a leading data and analytics company.

According to GlobalData’s Payment Cards Analytics, the value of card payments declined by 6.3% in 2020 due to the COVID-19 pandemic. However, with Taiwan responding effectively to the pandemic, the economy recovered and subsequently it resulted in the growth of the card payments value by 4.5% in 2021.

Ravi Sharma, Lead Banking and Payments Analyst at GlobalData, comments: “Although Taiwan historically been a cash-driven society, there has been a gradual shift towards digital payments supported by high banked population, financial awareness, banks incentivizing customers through a range of benefits (including cashback and discounts), and efforts by financial authorities to boost cashless payments. Though the pandemic impacted consumer spending, it highlighted the importance of non-cash payment methods, further driving the use of electronic payments in the country.”

To further reduce the dependence on cash in the country, the Financial Supervisory Commission (FSC) announced a non-cash payment transaction measurement index in March 2021, setting a target of a 50% increase in the number of non-cash payment transactions by 2023. To achieve this, the FSC has established a working group to promote non-cash payment transactions and continues to encourage the use of digital payment channels.

As part of efforts to boost the consumption and drive the economic recovery, the government launched ‘Quintuple Stimulus Voucher program’ in September 2021, offering vouchers worth TWD5,000 ($180.4) to the eligible residents which they can use with their credit cards or mobile payment apps. A similar program named ‘Triple Stimulus Voucher’ was launched in 2020 during the pandemic. Initiatives like these are expected to further push the consumer spending and in turn drive card payments.

Sharma concludes: “The Taiwanese card payments market is set to grow at a robust pace over the next five years, supported by a strong payments infrastructure, growing preference for electronic payments, and the government initiatives. The card payments value is expected to register a compound annual growth rate (CAGR) of 7.9% between 2022 and 2026 and reach TWD4.8 trillion ($172.7 billion) in 2026.”