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Over 25.4 million global buyers purchased from Hong Kong businesses via PayPal, amid a rise in mainland firms setting up in the city for overseas expansion and growing adoption of buy now, pay later (BNPL), according to a PayPal report on Tuesday.
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HK merchants continue to capture demand from major global markets
Global buyers from more than 100 markets maintained robust demand for Hong Kong products and services, with 200,000 daily cross-border transactions and US$409 million (HK$3.21 billion) monthly turnover, PayPal's data from July 2025 to June 2026 showed.
The US, Germany and the UK remained the top three international markets, with roughly 8.6 million, 6.2 million and 2.2 million purchases respectively. Some emerging markets such as Brazil, Mexico and Malaysia, also saw significant spending over the past year, according to the report.
More Chinese mainland firms set up in HK to go global
Retail, fashion, gaming and computers led Hong Kong's cross-border sales as increasingly more Chinese mainland's companies tend to establish a presence in the international trade hub as their springboard to grow their global business, said Jack Fu, director of Enterprise Account Management of Hong Kong and Taiwan at PayPal, adding that vacuum cleaner, 3D printer and drone from mainland's brands recorded an outstanding performance.
Mainland-made goods re-exported through Hong Kong made up roughly 41.2 percent of the city's total exports in 2025, according to Hong Kong official data. "The findings demonstrate the city's global reach, attractiveness and opportunities that cross-border commerce presents for local merchants," Fu said.
Buy now, pay later
Notably, consumer behavior was evolving during the reviewed period. The payments platform also found consumers valued digital payment experiences more highly, and buy now, pay later BNPL was gaining traction, which can ease upfront cash pressure and lift conversion rates as more hesitant buyers complete purchases.
PayPal's BNPL volume climbed 26 percent in the second quarter of 2026, with the US and Australia as mature markets and adoption picking up in Europe and Japan, he said. The global BNPL market is forecasted to grow 21 to 23 percent over the next decade, according to Global Market Insights.
Separately, a PayPal survey showed 63 to 70 percent of consumers planned to keep or raise their festive spending, while 18 to 27 percent would start shopping early. Merchants can adjust resource allocation according to their products and different markets, and prepare earlier with the year-end holiday shopping season approaching, including rolling out early-bird offers or limited coupons sooner, Fu added.
Frank Feng
