Hong Kong retailers are prioritising international expansion in 2026, but fragmented payment systems, fraud exposure and regulatory requirements are creating significant operational challenges, according to the latest Adyen Index.
The report found that 40% of enterprise merchants plan to enter new markets, with an average expansion budget of HK$1.65 million. The Asia Pacific and Europe, Middle East and Africa regions are the main targets. However, merchants face different payment preferences, regulatory frameworks and licensing requirements in each jurisdiction, making expansion more complex than simply launching in a new market.
System integration is a particular concern. All surveyed merchants reported obstacles to wider artificial intelligence adoption, with 35% citing difficulty integrating AI with existing systems. The problem extends to payments, where separate vendors, contracts and technology connections can create additional administrative work and make it harder to manage performance across markets.
The experience of gifting e-commerce group Limitless Technology illustrates the potential impact of consolidation. The company, which operates brands including LVLY, Flower Chimp and CakeRush, brought more than 10 online stores live across four markets within one week after consolidating four payment gateways through Adyen. It also standardised payment reporting across six markets, helping simplify reconciliation.
Fraud is another growing concern. Nearly nine in 10 merchants surveyed had been targeted by or fallen victim to payment fraud during the previous 12 months, with affected businesses reporting average losses of HK$1 million. Refund fraud was the most common type, affecting half of retailers, followed by phishing, identity fraud and chargeback abuse.
Adyen said its unified platform and dynamic fraud rules can help merchants respond to differences in local payment behaviour and risk patterns. Gaming studio GRYPHLINE, for example, used Adyen’s AI-driven risk-management tools to distinguish genuine players from bot networks during the global launch of Arknights: Endfield. The company also deployed network tokens and real-time account updating to reduce failed transactions and involuntary churn.
Regulatory and data-protection requirements add another layer of complexity. The Adyen Index found that 38% of merchants identified data privacy and security as a leading barrier to wider AI adoption. Retailers must therefore balance local compliance requirements with the use of data for personalisation and fraud prevention.
Cathay Pacific’s expanded partnership with Adyen demonstrates one approach. The airline added direct acquiring services across Hong Kong, Australia, New Zealand, the United States, Japan and India. Adyen said Cathay Pacific achieved a 10% increase in authorisation rates in India after implementing its acquiring solution.
“International expansion represents a significant opportunity for Hong Kong retailers, but success depends on getting the fundamentals right,” said Kai Tang, head of Hong Kong at Adyen. “Merchants who partner with the right payments partner that adapts to local market nuances without requiring custom integration for each region will be best positioned to scale efficiently and securely.”
The Adyen Index was based on research involving 324 Hong Kong enterprise merchants with annual turnover of at least HK$150 million.
