The Asia-Pacific (APAC) card payments market is expected to growth by 4.3% to reach $24.7 trillion in 2025 supported by growing preference for electronic payments.
GlobalData’s Payment Cards Analytics reveals that the card payment value in APAC registered a growth of 5.8% in 2023, driven by the rise in consumer spending. The value registered an estimated growth of 4.8% in 2024 to reach $23.7 trillion.
Ravi Sharma, Lead Banking and Payments Analyst at GlobalData, comments: “China, South Korea, Japan and Australia have a robust card payments market with high card payments value. Other markets within the region are also catching up supported by improving payment infrastructure, rising middle-income population, growing financial awareness, and banks offering lucrative benefits in terms of reward programs and instalment facilities.”
The APAC card payments market is dominated by China, which is expected to grow by 3.7% in 2025 to reach $20.3 trillion. It is distantly followed by South Korea with expected card payments value of $984.5 billion, Japan with $866.1 billion, and Australia with $731.4 billion in 2025.
However, card usage is comparatively low in the Philippines, Indonesia, India, Thailand, and Vietnam. This is mainly due to the limited financial awareness for card payments, inadequate POS infrastructure, and growing popularity of QR-based mobile payments.
These countries are also gradually pushing card adoption through various financial awareness campaigns as well as by introducing favorable regime. For instance, the central bank of Indonesia capped the credit card interest rate at 1.75%, effective from 1 July 2021, reducing it from existing 2% per month to drive credit card usage.
Similarly, in India, the government’s move to abolish merchant service fees on RuPay cards (domestic card) effective from 1 January 2020, encouraged the acceptance of RuPay cards among merchants, thereby pushing debit card usage.
However, high cost involved in POS infrastructure for merchants and high preference for digital wallets among consumers remain challenge for faster growth in card payments in the region. Many consumers in the region leapfrogged from cash to digital wallets skipping card payments. The availability of low-cost smartphones, rising Internet penetration, growing awareness of mobile payments and the proliferation of digital wallets have resulted in Asian countries shifting from cash transactions to mobile digital payments.
Sharma concludes: “Looking ahead, the total card payments market in APAC is expected to continue its upward trajectory, driven by ongoing government initiatives, improving payment infrastructure and a consumer shift towards electronic payments. However, high preference for mobile payments remains a challenge for their faster adoption. Overall, the card payments value in APAC is expected to register a compound annual growth rate (CAGR) of 6% between 2025 to 2029 to reach $31.1 trillion in 2029.”
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