Card payments in Hong Kong to register subdued growth of 1.2% in 2020
By MYBRANDBOOK
The lockdown and social distancing measures in Hong Kong due to COVID-19 has resulted in the closure of businesses and decline in consumer spending. As a result, card payments are estimated to register a subdued 1.2% growth this year, forecasts GlobalData, a leading data and analytics company.
As per the report, card payments market is expected to revive in the coming months with gradual reopening of businesses, easing of travel restrictions and potential launch of COVID-19 vaccine. The value of card payments is expected to increase at a compound annual growth rate (CAGR) of 3.9% between 2020 and 2024 to reach HK$1,241.7bn (US$159.4bn) in 2024.
Nikhil Reddy, Banking and Payments Analyst at GlobalData, comments: “The global trade war followed by Hong Kong protests (also known as anti-extradition law movement) affected the country’s economy, a situation which further worsened by the COVID-19 crisis. The downturn in economic growth has affected consumers’ buying capacity and subsequently impacted card payment.”
Credit cards is the most affected of all the card types. According to the Hong Kong Monetary Authority, credit card transaction value (including card payments at POS and cash withdrawals) registered a 11% decline in Q1 2020 compared to previous quarter. Debit cards, on the other hand, saw marginal rise of 0.9% during the same period.
According to GlobalData’s 2020 Banking & Payments Survey*, while card payments have declined in Q1 2020*, there is a rise in contactless card payments. To encourage contactless payments, the government introduced subsidy scheme for merchants in October 2020. Under this scheme, a subsidy of HK$5,000 (US$641.93) is offered to merchants to cover the cost of setting up contactless terminals and maintenance fees.
Mr Reddy concludes: “Hong Kong has a well-developed card payment market and strong payment infrastructure. While the current COVID-19 has caused a slowdown in its growth in 2020, it simultaneously brought major change in consumer preference towards non-cash tools such as contactless cards, which will in turn support card payments growth over the next few years.”
BREAKING NEWS
TECHNO TRENDS
Nazara and ONDC set to transform in-game monetization with ‘
Nazara Technologies has teamed up with the Open Network for Digital Comme...
Jio Platforms and NICSI to offer cloud services to government
In a collaborative initiative, the National Informatics Centre Services In...
BSNL awards ₹5,000 Cr Project to RVNL-Led Consortium
A syndicate led by Rail Vikas Nigam Limited (abbreviated as RVNL), along wi...
Pinterest tracks users without consent, alleges complaint
A recent complaint alleges that Pinterest, the popular image-sharing platf...
E-Magazine
TECHNOTAINMENT
Netflix adds 'Moments' feature for saving, sharing scenes from
Netflix has introduced a new “Moments” feature on its mobile app, whic
Jacqueline Fernandez come together with YouTuber Mr. Beast for
Jacqueline Fernandez has partnered with American YouTuber Mr. Beast to b
MOVERS & SHAKERS
Visa elevates Rishi Chhabra as new Country Manager for India
Rishi holds a Master’s in Industrial Engineering from The Ohio State Univ
Genesys welcomes Albert Nel as Senior VP and Regional Sales Le
Genesys continues to deepen its investment in the APAC region. Earlier this
OPEN YOUR EYES
INTERVIEWS
AMD Pensando driving innovation in the DPU architecture space
AMD Pensando stands out in the DPU (Data Processing Unit) market with its u
Delivering Critical Business Communication Solutions to Enterp
Arya Omnitalk and Syntel’s comprehensive suite of solutions and more than
HOT PICK
SonicWall Launches TZ80: A Powerful Solution for Remote Office
SonicWall announced today the launch of the TZ80, a groundbreaking securit
Gigabyte X3D Turbo: A Gaming Revolution
GIGABYTE X3D Turbo Mode is a cutting-edge feature that unifies cores distr
MAKE IN INDIA BRANDS
DRUVA SOFTWARE PVT. LTD.
CENTRE FOR DEVELOPMENT OF TELEMATICS (C-DOT)
VERSA NETWORKS INDIA PVT. LTD.
EXATRON SERVERS MANUFACTURING PVT. LTD.
EMINENT CIO'S OF INDIA
ICONS OF INDIA
ICONS OF INDIA : RITESH AGARWAL
Ritesh Agarwal is an Indian billionaire entrepreneur and the founder a...
ICONS OF INDIA : SHAILENDER KUMAR
Shailender Kumar is senior vice president and regional managing direct...
Icons Of India : PRATIVA MOHAPATRA
Prativa is a transformational leader with an incredible breadth of exp...
PARTNER SPEAKERS
PSU
STPI - Software Technology Parks of India
STPI promotes and facilitates the growth of the IT and ITES industry i...
EESL - Energy Efficiency Services Limited
EESL is uniquely positioned in India’s energy sector to address ener...
NPCI - National Payments Corporation of India
NPCI is an umbrella organization for operating retail payments and set...
VIDEOS
Top 25 Brands
Global Indian industry
Indian Tech Talent Excelling The Tech World - Aneel Bhusri, CEO, Workday
Aneel Bhusri, Co-Founder and Executive Chair at Workday, has been a le...
Indian Tech Talent Excelling The Tech World - Steve Sanghi, Executive Chair, Microchip
Steve Sanghi, the Executive Chair of Microchip Technology, has been a ...
Indian Tech Talent Excelling The Tech World - PADMASREE WARRIOR, Founder, President & CEO - Fable
Padmasree Warrior, the Founder, President, and CEO of Fable, is revolu...
STARNITE AWARDS 2024
ITFORUM 2024
CMO of the Year
WOMEN LEADERSHIP
IMAGE GALLERY
TRENDS IN TECHNOLOGY
MORE VIDEOS
ADVERTISEMENTS
TECHNOLOGY DISRUPTION
UNICORNS REVOLUTIONISING
