Taiwan’s push for card and mobile-based payments will reduce cash dependency in the country, a report by GlobalData has shown.
The report, Taiwan Cards & Payments: Opportunities and Risks to 2023, shows that cash remains the preferred payment method in Taiwan, but its share in the country’s total payment volume is expected to decline from 69.1% in 2019 to 59.7% in 2023 due to the rising preference for electronic payments.
Other key findings of the report:
- the overall card payment value in Taiwan increased at a CAGR of 8.7% during 2015–19 to reach TWD 4.2 trillion (USD 137 billion);
- the value of card payments value is expected to increase further to TWD 5.7 trillion (USD 186.9 billion) by 2023.
The report also underlines the government’s aim to increase the percentage of mobile phone users who make mobile payments to 90% by 2025. The government is offering tax incentives to small businesses, allowing them to continue paying minimal business tax (1%) until 2020 as long as they provide mobile payment acceptance to their customers. It is estimated that 400,000 small businesses (around one quarter of all SMEs in Taiwan) will benefit from the initiative.
Source: The Paypers