Source: GlobalData
Hong Kong (China SAR) card payments market to reach nearly $170 billion in 2025, forecasts GlobalData
Posted in Banking
The Hong Kong (China SAR) card payments market is forecast to grow by 4.5% to reach HKD1.32 trillion ($168.4 billion) in 2025, supported by a constant consumer shift towards non-cash payments, according to GlobalData, a leading data and analytics company.
GlobalData’s Payment Cards Analytics reveals that Hong Kong saw a growth of 15.7% in card payments value in 2023, driven by the rise in consumer spending. The market continued its growth trajectory with 7.4% growth to reach HK$1.26 trillion ($161.2 billion) in 2024. However, the current global uncertainty as a result of the latest US tariffs can pose a challenge for Hong Kong’s overall economic growth, resulting in a slowdown in the overall card payments value in 2025.
Ravi Sharma, Lead Banking and Payments Analyst at GlobalData, comments: “The Hong Kong payment card market is mature, supported by consistent efforts by the government to promote electronic payment methods, the launch of digital-only banks, and the development and expansion of payment acceptance infrastructure. Consumers are now switching from cash purchases in favor of electronic payments. This shift in consumer behavior signals a move away from conventional payment methods like cash to embrace digital alternatives, thereby benefiting card payments.”
A well-developed payment infrastructure has supported the overall card payments growth, with POS terminal penetration per 1 million individuals standing at 27,252 in 2024, one of the highest in the Asia-Pacific (APAC) region.
Sharma adds: “The growth of card payments has also been supported by high adoption and usage of contactless cards, supported by strong penetration and awareness of contactless cards among consumers and merchants in Hong Kong. Consumers and financial institutions alike have embraced the technology, with widespread acceptance infrastructure being the major reason why the cards are popular.”
Rising usage of contactless payments for public transport payments is also contributing to the growth of card payments. In November 2021, Golong International Technology Company entered into a partnership with the French firm Thales to upgrade the payment system for Hong Kong Tramways. This modernized electronic payment system was successfully deployed across all regular passenger trams by June 2023. The system accepts 12 payment methods, including contactless credit cards and QR codes, supplementing the two previously available options: the Octopus card and cash.
Among the card types, Hong Kong consumers strongly favor credit and charge cards over debit cards. This can be attributed to value-added benefits such as cashback, discounts, reward programs, and instalment payment plans offered by banks and financial institutions. Although debit cards are traditionally preferred for cash withdrawals, they are now increasingly being used for payments as well – especially low-to-medium value transactions.
Sharma concludes: “Looking ahead, the total card payments market in Hong Kong is expected to continue its upward trajectory, driven by ongoing government initiatives, well-developed payment infrastructure, and a consumer shift towards electronic payments. The market is expected to grow at a CAGR of 5.3% between 2025 and 2029 to reach HKD1.62 trillion ($207.1 billion) in 2029.”