GlobalData 2023 Financial Services Consumer Survey

According to GlobalData’s 2023 Financial Services Consumer Survey, around 94% Taiwanese consumers reported having shopped online in the past six months, while only 1.8% of respondents cited that they never shopped online.

GlobalData’s E-Commerce Analytics tool reveals that Taiwan’s e-commerce market grew by 8.8% in 2023 to reach TWD1.4 trillion ($44.7 billion), as an increasing number of consumers are opting the convenience of online shopping. The e-commerce market is estimated to grow by 7.8% to reach TWD1.5trn ($48.1bn) in 2024.

Kartik Challa, Senior Banking and Payments Analyst at GlobalData, said: “Taiwan’s e-commerce market is growing at a healthy pace. This growth was mainly due to rising internet and smartphone penetration, coupled with increasing consumer confidence in online transactions.”

Online shopping events such as Single’s Day (Double 11), Double Twelve, 618 Festival, and Black Friday have all contributed to this growth. The government also organises online shopping festivals such as the Mid-Autumn Reunion Shopping Festival and Taiwan-Matsu Joint Online Shopping Festival.

GlobalData’s survey also reveals that among the various tools used for e-commerce purchases, payment cards are the most preferred. They collectively accounted for 53.6% share of the e-commerce purchases in 2023, with credit and charge cards alone accounting for 47.3%. Card usage is driven by benefits such as reward points, cashback, discounts at partner merchants, and the availability of instalment payment facilities.

The rise of alternative payment solutions

While payment cards continue their dominance, alternative payment solutions are also increasingly used for online purchases and collectively accounted for 26.7% share. LINE Pay remains the most preferred alternative payment option, with international brands such as Apple Pay and Google Pay also making their presence felt.

Challa added: “Taiwan’s e-commerce market is expected to continue to evolve at a healthy pace going forward and is forecast to reach TWD1.9trn ($60.1bn) by 2028, registering a compound annual growth rate of 5.7% between 2024 and 2028. Growing consumer preference for online shopping, the rising popularity of online shopping festivals, as well as evolving authentication measures that offer enhanced security will further encourage online payments.”