The increase in online shopping supported card payments as well
According to GlobalData, card payments in the Asia-Pacific (APAC) region registered a subdued growth of 1% in 2020 due to the reduced consumer spending amid the COVID-19 pandemic. This year, they are set to rebound strongly with 19.2% growth.
With government restrictions being lifted and vaccine distribution gathering pace, economic activities are gradually resuming, the report states. APAC countries are likely to witness faster recovery compared to their western counterparts.
According to the International Monetary Fund forecasts released in January 2021, China is expected to grow by 8.1% while India’s growth is pegged at 11.5% in 2021.
GlobalData’s Payment Cards Analytics’ analysis revealed that card payments are expected to rise at a CAGR of 15.4% between 2021 and 2023 to reach $31.5 trillion in 2023.
However, while card penetration is on the rise in Asia, POS penetration is still very low. That’s because small businesses are reluctant to install POS due to their associated costs. For instance, India has a POS penetration of 4.1 per 1,000 individuals in 2020, compared to 46.6 in the UK.
We’ve reported that Brits say the majority of their payments are now contactless.