Finance & Economics

The Hong Kong card payments market to witness growth: here’s when

The country’s card payments market is still affected by the coronacrisis

Hong Kong

The Hong Kong card payments market to witness growth: here’s when. Source: pexels.com

According to GlobalData, the Hong Kong card payments market is expected to revive this year and register a 6.1% growth in 2022. In fact, the market’s value registered a significant drop of 14.7% in 2020 due to the decline in consumer spending.

GlobalData expects card payments to grow at a CAGR of 5.2% to reach $140.2 billion in 2025.

The payment card market in Hong Kong is mature with high card penetration and a high annual spending per card, driven by its robust payment infrastructure. Despite this, the card payments market declined in the past two years due to the global trade war followed by Hong Kong protests (anti-extradition law movement), which affected the country’s economy. This was further worsened by the COVID-19 crisis
Kartik Challa, Payments Senior Analyst at GlobalData

When it comes to the most preferred card types for payments in Hong Kong, credit and charge cards get to the top. That’s primarily because of the reward benefits offered on these cards and their wider merchant acceptance. They account for 63.9% of all card payments by value in 2021 while debit cards account for the remaining 36.1% share.

Nevertheless, credit and charge cards transactions were hit during the crisis, registering a decline of 16.9% in 2020 compared to a 10% decline in debit cards.

We’ve reported that less than 1 in 10 UK SMEs are worried about their current debt.

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