The card payment market in Taiwan (Province of China) is expected to grow at a compound annual growth rate (CAGR) of 7.7% between 2025 and 2029 to reach TWD7.2 trillion ($225.3 billion) in 2029f, mainly led by credit cards, driven by strong banked population, growing financial awareness, increasing preference for digital banking, and efforts by financial authorities to boost cashless payments, reveals GlobalData, a leading data and analytics company.

GlobalData’s Payment Card Analytics reveals that card payments (including payments at POS and those initiated remotely) in Taiwan registered a strong CAGR of 12.1% between 2020 and 2024. However, the value is expected to register a little slower growth of 6.8% in 2025 due to the nation’s prolonged economic slowdown. The country’s GDP growth rate decreased from 6.7% in 2021 to 4.8% in 2024 and is estimated to decline further to 3.3% in 2025.

Sidharth Das, Banking and Payments Analyst at GlobalData, comments: “While debit card penetration is high in Taiwan, credit cards dominate the payment card market. This trend can be attributed to several key factors like promotional strategies, enticing benefits like cashback, rewards, and discounts that directly incentivize consumer spending.

“Furthermore, credit cards provide the convenience of interest-free installment plans, which allows consumers to finance high-value purchases. Furthermore, the rise of e-commerce has also played a significant role, with credit cards being the preferred payment method for online shopping due to their widespread acceptance and the security features they provide.”

In the context of Taiwan’s financial landscape, the proliferation of debit cards is a noteworthy trend, with over five cards per individual underscoring the depth of market penetration. The robust banking infrastructure, characterized by a mix of local and international financial institutions, has been instrumental in fostering an environment where a significant portion of the population engages with banking services. The banked adult population in 2025, estimated at 95.8%, is indicative of a society that is not only financially literate but also actively participating in the banking ecosystem.

Despite the high penetration of debit cards, their utilization in the context of payment transaction value remains relatively modest, accounting for just 6.7% of the total card payment transaction value in 2025e.

On the other hand, credit cards are poised to continue their dominance in the payment transaction value space, representing a staggering 93.3% of the total in 2025e. This can be attributed to the aggressive marketing strategies employed by Taiwanese banks to promote credit card usage. The allure of credit card incentives such as cashback offers, reward points, and discounts, coupled with the convenience of installment payments, has resonated with consumers, leading to a preference for credit over debit cards.

Meanwhile, the rise in e-commerce payments also contributed to the growth of the payment cards market, as credit cards are the most preferred payment tool for online purchases. Credit cards alone accounted for a share of 33% of the total e-commerce transaction value in Taiwan in 2024, according to GlobalData’s E-Commerce Analytics.

The government, the Central Bank, and the Financial Supervisory Commission (FSC) are also introducing several initiatives to boost the adoption of electronic payments. In January 2024, the FSC set a new target to achieve eight billion non-cash payment transactions by 2026. With these growth initiatives, Taiwan is on the path towards a cash-light economy leading to increase in card usage for payments.

Das concludes: “Looking ahead, Taiwan’s card payments market is poised for continued expansion with credit cards driving growth. The combination of a highly banked population, rising financial awareness, and the growing adoption of digital and contactless payment solutions will underpin the future growth. The market is expected to grow at by 6.8% to reach TWD5.4 trillion $167.4 billion in 2025.”