Hong Kong cards push cash aside in $175b market

Card payment value grew at a 7.6% CAGR from 2021 to 2025.

Hong Kong’s card payments market is projected to reach $175b this year, driven by the continued development of payment acceptance infrastructure, strong consumer preference for payment cards, and the growing adoption of contactless payments.

The market’s total card payment value recorded a compound annual growth rate (CAGR) of 7.6% from 2021 to 2025, according to a GlobalData report.

“Hong Kong’s payment card market is mature with high card penetration and frequency of payments per card,” Shivani Gupta, Lead Banking and Payments Analyst at GlobalData, said.

“This can be attributed to the significant number of banked individuals in the country, government-led initiatives, heightened consumer awareness of electronic payment methods, and an expansion in merchant acceptance,” Gupta added.

Debit cards, on the other hand, are gaining popularity as a payment tool versus the traditional cash withdrawal.

Hong Kong individuals are leaning toward credit and charge cards when making payments. 

This is mainly due to the value-added benefits associated with these cards, such as flexible payment options and reward programmes.

GlobalData said that Hong Kong’s regulation and development in contactless payment technology are further reinforcing card adoption. 

Effective from 1 April, all taxis in Hong Kong will be required to offer two electronic payment options – one QR-code-based and one non-QR method (such as debit/credit cards or Octopus). 

This regulation is expected to increase non-QR, card-based transactions, including physical cards and mobile wallets linked to debit cards. 

As more daily, low-value payments such as taxi fares transition to card-enabled systems, the inherent convenience will further strengthen the public’s shift away from cash.

“The total card payments in Hong Kong are forecast to rise over the coming five years, driven by the expanding merchant acceptance and enhanced digital payments infrastructure. Rising banking access and product innovation will further broaden usage,” Gupta added.