Taiwan Sees Shift Away from Cash as Credit Cards Become King: Survey

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A recent report by Visa Taiwan Co has revealed a significant shift in payment habits in Taiwan, with credit and debit cards replacing cash as the most common method of transaction.

The Shift towards Digital Payments

According to a survey conducted by Visa Taiwan, 80% of respondents use credit cards daily, while only 35% rely on cash. This marks a significant change from previous years, where cash was the dominant payment method.

Decline of Cash Usage

The study found that 77% of respondents used cash for daily transactions in August last year, down from 91% in 2019. The decline in cash usage is attributed to the growing popularity of digital payments and online shopping.

Contactless Payment Methods on the Rise

The COVID-19 pandemic has accelerated the adoption of contactless payment methods, with 64% of respondents preferring cashless payment options for purchases above NT$400.

Online Shopping Trends

Visa Taiwan attributed the trend to the growing use of online shopping and reward point systems offered by banks issuing credit cards. The report also noted that 51% of respondents shop online at least once a week, up from 50% before the pandemic.

• Top three items on people’s online shopping lists:
  • Food deliveries
  • Fresh vegetables and meat
  • Healthcare products

Investment in Food Delivery Market

German food delivery firm Foodpanda GmbH has gained approval to invest NT$5 billion in its Taiwanese subsidiary, further highlighting the growing importance of the food delivery market in Taiwan.

The Future of Payments in Taiwan

The shift towards cashless transactions is expected to continue, with Visa Taiwan predicting that digital payments will become an increasingly popular choice for consumers. As the company stated, “Cash is no longer king.”