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New Worldpay research reveals how to win shoppers in Hong Kong’s sluggish eCommerce market
Providing the right payments journey can help online merchants overcome shoppers’ concerns around security and counterfeit goods
October 25, 2017
25th October 2017 – Hong Kong — From hyper-fast internet speeds to a mobile penetration rate over 200%1, Hong Kong is one of the most digitally connected places in the world – yet eCommerce development has been slow to take off in the Hong Kong Special Administrative Region (SAR). Now, new research from Worldpay, a leader in global payments has revealed that security and reputation concerns may be holding back Hong Kong’s online shoppers.
In its annual Global Payments Report, Worldpay found that while Hong Kong has some of the highest rates of internet use in the world – reaching almost 90% penetration amongst people aged 10 and older – many of the SAR’s 7.4 million consumers still prefer to shop at physical stores. Specifically, Hong Kong’s online shoppers tend to be suspicious of counterfeit goods.
Still, Hong Kong’s eCommerce market is forecast to grow by 10 per cent to reach US$21.1 billion by 2021; according to the report. Online merchants hoping to take a share of that growth must develop a trustworthy reputation in order to overcome local shoppers’ concerns around fake products and payment security.
Phil Pomford, General Manager for Asia Pacific at Worldpay, commented: “Hong Kong is a leading digital city with some of the highest internet and mobile penetration rates in the world. Shoppers here want to explore the world of eCommerce, but with counterfeit goods and security concerns holding them back, online merchants must develop a trustworthy reputation. Creating the right online payment journey is key to driving consumer confidence.”
Worldpay’s research indicates that a frictionless checkout experience can satisfy shoppers’ security fears, minimise the risk of shopping cart abandonment and lead shoppers to return to a retailer’s website. Online shoppers want a quick, easy, seamless checkout experience whether they are shopping via desktop or mobile, with prominently displayed security logos so that the merchant’s commitment to data protection is front and centre.
Merchants can also offer a wide range of payment methods so that shoppers can always choose the one they feel most secure using. The research revealed that currently, 55 per cent of Hong Kong’s online shoppers prefer to pay with a credit card, but e-wallets are predicted to become the preferred payment method for more than one in four (28 per cent) online shoppers by 2021. The third most popular payment method in Hong Kong, bank transfers, are expected to remain relatively constant in the next few years, shifting from 8.1 per cent market share in 2017 to 8.4 per cent by 2021.
Pomford continued, “By offering shoppers a variety of payment options, online merchants can build trust and loyalty amongst consumers who may feel more secure using their payment method of choice. Providing a range of options, from credit cards to e-wallets and beyond, is also an effective way to win share-of-wallet from cross-border shoppers who may be more likely to buy from Hong Kong merchants if they can pay with their preferred method and local currency.”
Worldpay has published a list of guidelines for merchants looking to capitalise on the eCommerce and mCommerce opportunity in Hong Kong and the wider Asia Pacific region:
- One-click ordering: Consumers are more likely to shop more often with companies that save their payment details for one-click ordering. Merchants should provide one-click ordering to make online checkout as seamless as possible – especially via mobile apps.
- Consider the most popular payments methods in each territory, and prioritise those that complement your business model – there is no one size fits all in the Asia-Pacific region so you will need to understand the best options for your company.
- Cross-border trade: Merchants should ensure that they have local acquiring capabilities wherever they have a legal entity; offer a wide range of currencies at checkout; and consider local language customer support in their customers’ time zone to deliver a great customer experience.
About the 2017 Global Payments Report
This report was compiled using a mixture of primary and secondary data sources. Primary refers to our own surveys and commissioned research; whereas secondary refers to authoritative third-party vendor data, and other publicly available data. The report also draws upon Worldpay’s decades of experience in providing global eCommerce solutions. The eCommerce projected growth figures contained in this report were sourced from GlobalData’s eCommerce Analytics database and relate to the eCommerce industry as a whole, not Worldpay’s business. GlobalData collected this data using consumer surveys, B2B surveys and desk research. Any indicative predictions based on the data we have used should be treated as such.
Worldpay is a leading payments company with global reach. We provide an extensive range of technology-led payment products and services to around 400,000 customers, enabling their businesses to grow and prosper. We manage the increasing complexity of the payments landscape for our customers, allowing them to accept the widest range of payment types around the world. Using our network and technology, we are able to process payments from geographies covering 99% of global GDP, across 146 countries and 126 currencies. We help our customers to accept more than 300 different payment types. For more information, visit http://www.worldpay.com/global/about/regional-expertise/asia-pacific
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Worldpay (UK) Limited (Company No. 07316500 / FCA No. 530923), Worldpay Limited (Company No. 03424752 / FCA No. 504504), Worldpay AP Limited (Company No. 5593466 / FCA No. 502597). Registered Office: The Walbrook Building, 25 Walbrook, London EC4N 8AF and authorised by the Financial Conduct Authority under the Payment Service Regulations 2009 for the provision of payment services. Worldpay (UK) Limited is authorised and regulated by the Financial Conduct Authority for consumer credit activities.
1Office of the Communications Authority: http://www.ofca.gov.hk/en/media_focus/data_statistics/key_stat/