Card payments in Taiwan are expected to register an annual growth of 5.6% in 2020, as the COVID-19 pandemic has accelerated the push towards electronic payments, according to GlobalData, a leading data and analytics company.

An analysis of GlobalData’s Payment Cards Analytics reveals that card payments in Taiwan are expected to grow at a compound annual growth rate (CAGR) of 7.6% to reach TWD6.0 trillion (US$200.2bn) in 2024.

Sowmya Kulkarni, Payments Senior Analyst at GlobalData, comments: “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.”

Taiwan is playing a key role in promoting card usage. To provide relief to cardholders, the government urged banks to offer deferrals on loan instalments and reduce interest rates. In response, major banks including Citibank, HSBC, Hua Nan Bank, and Land Bank of Taiwan have cut interest rates on credit cards balances. Banks are also offering deferrals on credit card bill payments.

The government launched ‘triple stimulus voucher’ program offering cash back to customers on credit card purchases. Individuals from 38 banks can register for this program. On spending TWD3,000 ($100.19) between 15 July and 31 December 2020 via the registered credit card, TWD2,000 ($66.79) will be credited back as cashback to the credit card account. This program is anticipated to help boost card payments transactions.

Ms Kulkarni concludes: “Although Taiwan is among the least affected countries from the outbreak of COVID-19 pandemic, the overall consumer spending contracted as consumers are spending cautiously. However, with the government introducing comprehensive stimulus measures, consumer spending is expected to rise, which is in turn expected to drive the growth of card payments.”