Adyen, a global financial technology platform, has released its Adyen Index 2025, highlighting how Hong Kong’s retail sector is adapting to digital adoption, evolving payment habits, and changing consumer expectations.

The study, based on a poll of 41,000 consumers across 28 markets, including Hong Kong, shows that while AI is becoming more common across Asia Pacific (APAC), Hong Kong consumers remain cautious.

Around 30% of respondents in Hong Kong are comfortable using AI when shopping, but 35% are hesitant, citing fraud risks and the reliability of AI-generated recommendations. 15% report not trusting AI at all, slightly above the APAC average.

Despite this caution, younger consumers show growing interest in AI-enabled experiences, with more than half of Hong Kong shoppers open to purchasing from overseas brands via social media platforms.

This suggests increasing appetite for digital convenience and new discovery channels.

The report finds that convenience and speed are central to Hong Kong consumers’ purchasing decisions.

60% will abandon a transaction if the payment process takes too long, while 58% will do so if their preferred payment option is unavailable.

Payment preferences are shifting, with digital wallets now used by 23% of consumers, compared with 15% in the previous year.

Credit cards remain the most popular option at 32%, but the rise of digital wallets reflects Hong Kong’s transition towards a more cashless retail environment.

Retailers are responding by investing in technology to enhance customer experience and strengthen security.

Nearly 40% of merchants in Hong Kong are adopting AI tools for personalisation and fraud detection.

Fraud remains a pressing issue, with 28% of merchants reporting increased attacks over the past year, resulting in average annual losses of HKD 5–6 million.

Chargebacks account for up to 10% of revenue losses for over a third of retailers, while 40% say fraudulent transactions have significantly impacted profitability.

AI-powered fraud prevention and payment optimisation solutions are increasingly prioritised.

Tools such as Adyen Uplift, which analyses transaction data in real time, are designed to reduce false declines, minimise chargebacks, and improve authorisation success rates while maintaining strong fraud controls.

Beyond AI, unified commerce is emerging as a strategic priority.

83% of Hong Kong retailers now operate unified commerce systems, enabling a single view of customers across online and offline channels.

This integrated approach supports services such as click-and-collect, real-time inventory updates, cross-channel loyalty schemes, and personalised promotions.

Nearly half of Hong Kong consumers expect to shop seamlessly across platforms including social media, websites, and apps, while 38% value smoother online-to-offline returns and exchanges.

Omnichannel capabilities are closely tied to customer loyalty.

Over half of consumers say they would remain loyal to retailers offering online purchases with in-store returns, or the option for out-of-stock items to be shipped directly to their homes.

For Hong Kong retailers, unified commerce is no longer an added convenience but a competitive requirement in meeting consumer expectations.

Featured image credit: Edited by Fintech News Hong Kong, based on image by EyeEm via Freepik