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Hong Kong

Mobile Commerce Clusters

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Mobile Commerce Clusters
Measures partnerships among banks, mobile networks, and governments.
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Environment

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Environment
Measures economic, technological, and demographic factors within a market.
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Infrastructure

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Infrastructure
Measures the sophistication and penetration of the mobile phone industry and NFC terminalization.
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33.7

Consumer Readiness

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Consumer Readiness
Measures how familiar with, how willing to use, and how frequently consumers are currently using all three types of mobile payments.
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Financial Services

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Financial Services
Measures the effectiveness and penetration of consumer financial products.
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Regulation

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Regulation
Measures legal and regulatory structures and how they affect businesses.
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Summary

While the financial services industry and regulatory system in Hong Kong are well developed for mobile payments, consumers are not yet on board, giving Hong Kong an overall score of 33.7 on the MasterCard Mobile Payments Readiness Index. Specifically, the country's strong financial services and efficient regulations were offset by lower-than-average consumer willingness and adoption scores. Consumer education and marketing efforts that promote the value of mobile payments will be needed to turn the tide in favor of their adoption.

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What you need to know:

Hong Kong has very strong financial and regulatory organizations
Consumers are less willing to use mobile payments compared to their global counterparts on both P2P (10% versus 19% average) and m-commerce (11% versus 17% average)
Familiarity with contactless cards like Octopus could give POS mobile payments an edge in the near term

Country Overview

Market Forces

Hong Kong is a global financial center and has the financial services and regulatory system to match. Financial services are considered affordable and businesses get high marks for their customer service. An important element of the market's ability to adopt mobile payments is how well companies absorb new technologies because it reveals how receptive merchants and other members of the payments ecosystem are to change.

The overall environment is ripe for mobile payments.

Here, Hong Kong does very well, scoring 84 percent compared to an Index average of 76 percent. The level of government regulation of business is not considered burdensome and laws related to information and

communication technology are well developed. These factors suggest the overall environment is ripe for mobile payments, but the consumer story needs to be considered to understand the full picture.


Consumer Sentiment

Consumers in Hong Kong are less familiar and less willing to use mobile payments than the Index average. Frequency of usage is low across all three types of mobile payments; the only type of mobile payment where consumers in Hong Kong are more frequent users than

the Index average is at the point of sale, and even there the edge is very slight. Hong Kong consumers are experienced users of contactless payments, thanks to the Octopus card used for the transit system. This familiarity could be leveraged to expand consumer engagement with mobile payments.

© MasterCard

GLOBAL PERSPECTIVE ON CONSUMER SENTIMENT IN HONG KONG

Relative to the Index average and leading countries, how do consumers feel about mobile payments?

54% - France
Country Score Index Average Leading Country

MasterCard Conclusion

According to MasterCard, Hong Kong has many of the critical ingredients needed for widespread adoption of mobile payments. The financial and regulatory structures are well suited for payments, but consumer willingness and frequency of usage remains low. Given the experience consumers have with contactless payments via the Octopus card, as well as the ease with which companies in Hong Kong adapt to new technologies, MasterCard believes mobile payments at the POS could be a strong starting point for mobile payments in Hong Kong.

33.7
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