The Hong Kong card payments market, which was impacted by the COVID-19 pandemic, is on the recovery path supported by the rise in consumer spending and economic resurgence.
Due to this, it is expected to report a 6% growth in 2022 to reach HKD940.2bn ($120.6bn), forecasts GlobalData, a leading data and analytics company.
According to GlobalData’s Payment Cards Analytics, the value of card payments in Hong Kong has registered a significant decline of 14.7% in 2020 due to the decline in consumer spending amid the COVID-19 pandemic. The market is recovering gradually supported by the reopening of businesses, easing of travel restrictions and ongoing vaccination programs.
Ravi Sharma, the Lead Banking and Payments Analyst at GlobalData, commented:
“While the pandemic led to a decline in the overall consumer spending, it resulted in a significant shift in consumer preferences towards the use of non-cash methods of payment, which is expected to have a positive effect on card payments market in coming years.”
The Hong Kong government has been taking various initiatives to drive electronic payments in the country including the introduction of a subsidy scheme in October 2020 to push contactless payment acceptance among merchants.
Another successful initiative by the government was their ‘cash payout’ scheme that was introduced in June 2020 and ended in December 2021. The 'cash payout' scheme meant that individuals aged 18 and above were eligible for HKD10,000 ($1,283) which was deposited in their bank account electronically or via cheque.
Sharma concluded: “Hong Kong has a well-developed card payment market and strong payment infrastructure. While the COVID-19 pandemic disrupted its growth trajectory over the past couple of years, it is set to rebound with constant government support, and rising consumer spending."