Government initiatives have promoted sector growth.
Taiwan's e-commerce market is projected to grow at a compound annual growth rate (CAGR) of 9% from $35.4b (TWD1.1t) in 2020 to $49.9b (TWD1.5t) in 2024 as consumers move away from cash and with government initiatives promoting the use of online commerce, according to GlobalData.
One of the initiatives launched by the government is a subsidy program in April under which retailers are offered subsidies to cover costs, including setup, marketing, logistics and order processing. The government allocated $3.3m (TWD100m), with about 1,000 retailers expected to benefit from the program receiving $3,339.58 (TWD100,000) each.
GlobalData's banking and payments analyst Nikhil Reddy commented that the pandemic has made online purchasing more appealing to consumers as they would rather stay at home to avoid social contact.
As a result, several e-commerce companies have seen gains, with online shopping sites PChome Online and Momo.com registering revenue growth of 12.5% and 26.7%, respectively, in July, compared to same month last year.
Furthermore, payment cards emerged as the most preferred payment method for e-commerce purchases in Taiwan, accounting for 53.3% share in 2020. Alternative payment methods such as Line Pay and Apple Pay have also been gaining prominence amongst consumers and collectively account for 20.1% share.
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