An expert and comprehensive overview of the cards, payments and consumer banking market in Taiwan, with expert commentary on in-depth cards market data.
There has been a notable and sudden uptick in mobile payments: the market entrance of Pay apps from Apple, LINE and others led to the authorities setting up Taiwan Pay, which met with popular approval once widespread acceptance was assured.
Cash use is falling markedly in Taiwan as penetration rates soar for digital wallets and mobile payment apps. Amended e-payment legislation has been designed to allow for greater digital payment market growth for third-party providers.
Over half of card payments in Taiwan were contactless in 2020, with usage propelled by the pandemic.
How consumers respond to a competitive payments environment.
Why debit card usage at the POS has risen.
Which online payment tools are finding favour.
What Taiwan credit card issuers are focusing on.
How fintech and regulators have yet to combine effectively.
TABLE OF CONTENTS
Demographics and the economy
Key retail banks and issuers
Acquiring and processing
Regulatory and other cards market information
Appendices: Payments Data
Appendix I: Demographics and the economy
Appendix II: Payments environment
Appendix III: Cards market data
Appendix IV: Mobile payments
Appendix V: Profit pool
Appendix VI: Card networks
Appendix VII: Key retail banks and issuers
Appendix VIII: Acquirers and processing
Appendix IX: Online acquiring
Demographics and Economy
Taiwan has a dynamic economy, with an estimated GDP per capita of $24,231 in 2020. The economy rebounded strongly from the recession ... with an average growth rate of 2.5% between 2014 and 2020.
Although the country has advanced payments infrastructure, the market has been notoriously sticky when it comes to notes and coins. In 2020, cash accounted for an estimated 53% of private household expenditure; however, that is down from 68% in 2014.
Taiwan's consumer credit market is dominated by large financial institutions. Large private commercial banks play a dominant role in personal and card lending.
The Taiwanese government has set out an ambitious target to reach a 90% mobile payment penetration rate by 2025 – compared to a penetration rate of 70% in 2020.
Taiwan has a high credit card penetration and the industry has maintained a healthy profit pool since 2009 (although profitability dipped slightly in 2020 due to the effects of the pandemic).
Visa remains the market leader in terms of the number of credit cards and billed volume and is followed by Mastercard. Taiwan's debit cards market is dominated by the domestic scheme, but its debit cards are used in the main for withdrawing cash, whereas international networks are used more for making purchase transactions.
Key Retail Banks and Issuers:
Although Taiwan's credit cards market is competitive and fragmented, with 37 financial institutions issuing credit cards, the leading banks continue to dominate through economies of scale.
Acquiring and Processing
Despite the freedom to act as one's own acquirer, the merchant acquiring business here remains highly consolidated, with five institutions accounting for almost 100% market share of acquired credit card purchase volume in 2020.
The B2C e-commerce market in Taiwan was worth an estimated $31.5 billion in 2020, growing at an average annual rate of 8% between 2014 and 2019.
Regulatory and Markets Information
While fintech developments in Taiwan have been moving slowly when compared with East Asian counterparts such as China and South Korea, Taiwan is now working harder to encourage growth.
Cathay United Bank
Central Bank of the Republic of China – Taiwan
Central Government Securities Settlement System
Chiayi Forth Credit Cooperation
Chinatrust Commercial Bank
Chu Nan Credit Cooperative Association
Danhai Light Rail
European Chamber Of Commerce Taiwan
Far Eastern International Bank
Farmers' & Fishermen's Association
Financial Information Service Company
Financial Ombudsman Institution
Financial Supervisory Commission
First Commercial Bank
Global Media Online
Hua Nan Commercial Bank
Intellectual Property Office
Interbank Funds- Transfer System
International Telecommunication Union
Kaohsiung Business Bank
KEB Hana Bank
Land Bank of Taiwan
Mass Rapid Transit
Mega International Commercial Bank
Ministry of Economic Affairs
Ministry of Finance
National Credit Card Centre
National Debit Card Centre
National Palace Museum
Pi Mobile Technology
Ta Chong Bank
Taipei Fubon Bank
Taipei Rapid Transit Corporation
Taishin Omni-Payment Platform
Taishin Financial Holding
Taishin International Bank
Taiwan Business Bank
Taiwan Clearing House
Taiwan Cooperative Bank
Taiwan Depository and Clearing Corporation
Taiwan Mobile Payment Company
Taiwan Shin Kong
Taiwan Shin Kong Commercial Bank
Taiwan Stock Exchange Corporation
Taoyuan Airport MRT
Union Bank of Taiwan
Union Commercial Bank
United World Chinese Commercial Bank
Yuanta Commercial Bank
Verisk financial reports include detailed market and competitor intelligence on payments cards, e-money, acquiring, retail banking, and consumer credit in the Asia Pacific region. Analysts use primary and secondary source data and conduct in-depth interviews with senior industry executives and finance experts.
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