159 views
Photo by Андрей Сизов on Unsplash

Credit and charge card payments to exceed $800b in 2026

The market is expected to grow at a CAGR of 3.9% between 2022-2026.

Hong Kong’s credit and charge card payments value is expected to reach $831.9b (US$106.7b) in 2026, according to GlobalData.

In a report, GlobalData said the market will likely grow at a compound annual growth rate (CAGR) of 3.9% between 2022–2026 given the “significant shift in consumer preferences towards non-cash payment methods and recovery in consumer spending.”

In 2020, credit and charge card payments declined by 17.1% due to a decline in consumer spending during the pandemic. The following year, the market saw a 15.4% growth, thanks to economic recovery and government initiatives.

This year, GlobalData forecast that credit and charge card payment value will register a 4.6% growth.

“Credit and charge cards are the most preferred payment cards in Hong Kong, accounting for 71% of total card payments by value in 2022. Government initiatives and opening of businesses have all increased consumer spending in Hong Kong, thereby benefiting its credit and charge card market,” Ravi Sharma, Lead Banking and Payments Analyst at GlobalData, commented.

Sharma added that Hong Kong has a card penetration of 2.7 cards per individual and a frequency of payments of 48.1.

The expert, however, warned that the market still faces several challenges, including global geopolitical risks and inflation. 

Hong Kong’s inflation rate skyrocketed to 4.4% in September of 2022, and to tackle inflation, the central bank increased its benchmark interest rate to 4.75% in December 2022.  

“Rising interest rates will increase borrowing costs on credit cards, thereby discouraging credit card spending in Hong Kong. The ongoing Russia-Ukraine crisis and rising energy prices resulted in economic uncertainty across the world. These factors are weakening consumer confidence about their financial situation and could affect overall spending,” Sharma said.

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Hong Kong sets higher investment threshold for residency
Whilst permanent residency in Hong Kong now requires a minimum outlay of $30m (US$3.83m), the range of permissible investments has been expanded.
MBA programmes in Hong Kong live up to financial hub status
MBA providers hop on experiential learning and progressive curriculums to ensure competitive edge in the rapidly evolving business landscape.