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
Legal Battle Over IT Act Intensifies Amid Musk’s India Plans
The outcome of the legal dispute between X Corp and the Indian government c...
Wipro inks 10-year deal with Phoenix Group's ReAssure UK worth
The agreement, executed through Wipro and its 100% subsidiary,...
Centre announces that DPDP Rules nearing Finalisation by April
The government seeks to refine the rules for robust data protection, ensuri...
Home Ministry cracks down on PoS agents in digital arrest scam
Digital arrest scams are a growing cybercrime where victims are coerced or ...
E-Magazine
TECHNOTAINMENT
Hrithik Roshan to endorse RuPay as Brand Ambassador
RuPay is reportedly planning to feature Bollywood superstar Hrithik Rosha
India Today Group launches – AI Pop Stars
Staying true to our industry leadership position in using cutting-edge tech
MOVERS & SHAKERS
TelioLabs ropes in Phaniraj V A as the Group CEO
TelioLabs has announced the onboarding of Phaniraj V A as its new Group CE
Wipro Appoints Amit Kumar as Managing Partner and Global Head
Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading technology s
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
Alpha Max offers high end solutions in the network space to en
The vision at Alpha Max is to attain quality as the trademark and create a
HOT PICK
MSI Announces the availability of RTX 50 series of laptops in
MSI, the innovative computing manufacturer in gaming, creator
Nothing Phone (3a) goes on sale today, starting at Rs 19,999
The phone was launched on March 4, featuring a 50MP main, ultra-wide, and t
MAKE IN INDIA BRANDS
BPE INDIA PVT. LTD.
PDRL - Passenger Drone Research Pvt. Ltd.
DELL TECHNOLOGIES INDIA PVT. LTD.
TECHROUTES NETWORK PRIVATE LIMITED
EMINENT CIO'S OF INDIA
ICONS OF INDIA
Icons Of India : Kumar Mangalam Birla
Aditya Birla Group chairman Kumar Mangalam Birla recently made a comeb...
Icons Of India : ASHISH KUMAR CHAUHAN
Ashish kumar Chauhan, an Indian business executive and administrator, ...
ICONS OF INDIA : SHAILENDER KUMAR
Shailender Kumar is senior vice president and regional managing direct...
PARTNER SPEAKERS
PSU
BSE - Bombay Stock Exchange
The Bombay Stock Exchange (BSE) is one of India’s largest and oldest...
NIC - National Informatics Centre
NIC serves as the primary IT solutions provider for the government of ...
EESL - Energy Efficiency Services Limited
EESL is uniquely positioned in India’s energy sector to address ener...
VIDEOS
Top 25 Brands
Global Indian industry
Indian Tech Talent Excelling The Tech World - PADMASREE WARRIOR, Founder, President & CEO - Fable
Padmasree Warrior, the Founder, President, and CEO of Fable, is revolu...
Indian Tech Talent Excelling The Tech World - JAYASHREE ULLAL, President and CEO - Arista Network
Jayshree V. Ullal is a British-American billionaire businesswoman, ser...
Indian Tech Talent Excelling The Tech World - George Kurian, CEO, Netapp
George Kurian, the CEO of global data storage and management services ...
ITFORUM 2025
CMO of the Year
WOMEN LEADERSHIP
IMAGE GALLERY
TRENDS IN TECHNOLOGY
MORE VIDEOS
ADVERTISEMENTS
TECHNOLOGY DISRUPTION
UNICORNS REVOLUTIONISING
of images belongs to the respective copyright holders
