Non-cash payments stand at the center of Taiwan’s financial policy agenda this year. Taiwan’s Financial Supervisory Commission aims to reach NT$10 trillion in non-cash payments in 2026. Officials expect roughly eight billion transactions as digital finance expands nationwide.
The commission announced the target in Taipei this week. Leaders framed the goal as a milestone for financial modernization. They want Taiwan to reduce reliance on physical currency. They also want to strengthen data driven financial services.
Last year, non-cash payments reached 8.7 billion transactions. That figure marked a 5.1% increase from the prior year. Total transaction value climbed to NT$8.7 trillion. That total represented a 5.3% annual increase.
Officials note that recent performance already exceeded earlier benchmarks. However, individual transaction sizes remain relatively small. Therefore, regulators now focus on lifting overall transaction value. They plan to encourage higher spending through digital channels.
The commission defines non-cash payments as transactions without physical currency. These include credit cards, stored value cards, electronic transfers and ATM settlements. Consequently, digital options now shape daily consumer behavior across the island.
Analysts say the pandemic accelerated this shift. During that period, consumers avoided handling cash. As a result, many embraced mobile wallets and contactless cards. Even after restrictions eased, digital habits persisted.
Small and medium sized businesses now play a crucial role. For example, night markets increasingly accept QR code payments. Street vendors have adopted mobile terminals to meet customer demand. This shift broadens financial inclusion and convenience.
Meanwhile, the Financial Information Service Co. has promoted a unified QR code system called TWQR. The platform integrates multiple payment providers into one standard. Consequently, consumers can pay with different apps at the same terminal.
Banks have intensified competition as transaction volumes rise. For instance, Cathay United Bank has expanded its Cube credit card ecosystem. The bank reports more than five million active cardholders. It offers flexible rewards across travel, dining and digital services.
Similarly, CTBC Bank has partnered with major brands. The lender promotes co branded cards and loyalty programs. Through these collaborations, it targets high frequency consumer spending categories.
In addition, Taipei Fubon Bank observes shifting consumer preferences. Executives say customers choose payment tools based on context and rewards. Therefore, banks now emphasize seamless user experiences and integrated platforms.
Regulators argue that broader adoption strengthens economic transparency. Digital transactions generate traceable records and reduce cash handling risks. Moreover, policymakers believe digital payments support fintech innovation and cross border commerce.
However, analysts caution that growth depends on everyday use cases. Consumers must view digital payments as effortless and secure. Merchants must also manage transaction fees effectively. Otherwise, cash usage could remain resilient in certain sectors.
Looking ahead, the commission plans further public education campaigns. Officials will also work with banks to refine incentives. They aim to encourage larger ticket purchases through digital channels.
Ultimately, Taiwan’s NT$10 trillion goal signals confidence in its fintech trajectory. If momentum continues, non-cash payments could reshape retail and banking landscapes. The coming year will test whether policy support and market competition can sustain that acceleration.
