Taiwan payment card market to surpass US$578 billion in 2025

Taiwan’s (Province of China) payment card market is projected to grow 3.8% to reach TWD18.6 trillion ($578.3 billion) in 2025e, reflecting a shift from cash to digital payments. Despite ATM withdrawals still accounting for 71% of transaction value, rising POS card usage, contactless innovations, and government initiatives highlight Taiwan’s digital transformation and future opportunities for financial institutions, reveals GlobalData, a leading data and analytics company.

GlobalData’s Payment Card Analytics reveals that card payments value (including payments at POS and initiated remotely) in Taiwan registered a healthy compound annual growth rate (CAGR) of 12.1% between 2020 and 2024 to reach TWD5 trillion ($156.8 billion) in 2024. On the other hand, card usage for ATM cash withdrawals is decreasing with total ATM cash withdrawals registering negative CAGR of 0.9% during the same period.

Shivani Gupta, Lead Banking and Payments Analyst at GlobalData, comments: “Taiwan’s payment card market is highly penetrated, with each individual holding an average of 7.9 cards in 2025e. The card usage frequency has also increased from 19.2 times per card in 2020 to 29.9 times per card in 2025e, though yet to gain mass adoption. This shift in consumer preference can be attributed to a well-banked population, along with initiatives from the government and financial institutions aimed at increasing awareness and promoting the adoption of electronic payment methods.”

Despite high card penetration, payment cards are predominantly utilized for ATM cash withdrawals than card payments at POS terminals. ATM cash withdrawals represented 71% of the total payment card transaction value in 2025, highlighting the prevalent consumer inclination towards cash. However, this share is anticipated to decrease in the coming years due to the growing preference for digital payment methods, which offer greater convenience and security.

Card payments at POS terminals, on the other hand, are steadily increasing, with their share is estimated to reach 29% in 2025. This growth can be attributed to the rising consumer awareness, growing POS terminalization, and the introduction of contactless cards by banks. However, the strong preference for digital wallets for low-value transactions is hindering the faster adoption of card payments.

To enhance the acceptance of card payments among small and medium enterprises (SMEs), payment service provider Ingenico introduced an all-in-one POS terminal “AXIUM CX900” in April 2025. This multifunctional terminal supports a wide range of payment methods, including contactless and digital wallets, catering to a variety of retail needs, including sales, payments, and inventory management. 

The growing adoption of contactless payment will also contribute to the overall card usage at POS. Backed by most banks and financial institutions, contactless payments have become increasingly prevalent and are also widely accepted by most retailers.

To capitalize on the growing preference for contactless payments, Japan-based payment network JCB introduced contactless payment capabilities for JCB card holders at 18 stations along the Taichung MRT Green Line in April 2024. This development enables travelers to easily pay for transit fares by tapping their contactless-enabled JCB cards or mobile devices at station entry points.

Furthermore, in 2025, the Taichung MRT Corporation integrated contactless payment services for credit card users of Mastercard, Visa, JCB, and UnionPay, including those associated with Apple Pay, Google Pay, and Samsung Pay.

Gupta concludes: “Looking ahead, the Taiwan payment card market is poised for sustained growth over the next five years, supported by increasing consumer awareness for payment cards amid a boarder digital transformation. The developing card acceptance infrastructure and shift in consumer preferences towards digital payments will also contribute to this growth. The payment cards market is forecasted to grow at a CAGR of 3.6% between 2025 and 2029 to reach TWD21.4 trillion ($664.9 billion) in 2029.”