Hong Kong Cards and Payments - Opportunities and Risks to 2025

Hong Kong Cards and Payments - Opportunities and Risks to 2025

Summary

GlobalData’s ‘Hong Kong Cards and Payments - Opportunities and Risks to 2025' report provides detailed analysis of market trends in Hong Kong's cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cash, cards, direct debits, credit transfers and cheques during the review-period (2017-21e).

The report also analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2021e-25f). It also offers information on the country's competitive landscape, including market shares of issuers and schemes.

The report brings together GlobalData’s research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers detailed regulatory policies and recent changes in regulatory structure.

This report provides top-level market analysis, information and insights into Hong Kong's cards and payments industry, including -

• Current and forecast values for each market in Hong Kong's cards and payments industry, including debit, credit, and charge cards
• Detailed insights into payment instruments including cash, cards, direct debits, credit transfers and cheques. It also, includes an overview of the country's key alternative payment instruments.
• Ecommerce market analysis.
• Analysis of various market drivers and regulations governing Hong Kong's cards and payments industry.
• Detailed analysis of strategies adopted by banks and other institutions to market debit, credit and charge cards.
• Comprehensive analysis of consumer attitudes and buying preferences for cards.
• The competitive landscape of Hong Kong's cards and payments industry.

• The proliferation of digital-only banks is likely to create competition in Hong Kong’s banking sector. Standard Chartered partnered with telecommunication companies PCCW and HKT as well as tourism platform Trip.com to launch digital-only bank Mox Bank in September 2020. The bank provides a free Mox account with a numberless debit card for no annual fee. Previously, digital-only bank ZA Bank was launched in Hong Kong in March 2020. The bank offers a savings account along with a Visa debit card.
• The government and regulatory authorities have taken steps to boost the use of cashless payment methods. In September 2018, the Hong Kong Monetary Authority (HKMA) launched Common QR Code standards to promote the use of a standard QR code for retail payments, thereby eliminating the need for merchants to display multiple QR codes at the POS. The Hong Kong QR mobile app can be used by consumers to make payments at all retailers accepting the Common QR Code. As of January 2022, 13 payment services providers are participants of the Common QR Code standards.
• The outbreak of COVID-19 has resulted in a significant shift in consumer preferences towards the use of cashless methods of payment. According to a Visa survey conducted in December 2021, payment card usage increased significantly in 2021: 93% of survey respondents used cards for payments owing to the security and convenience they offer. According to the same survey, 38% of respondents expect to increase their use of cashless payment methods over the next 12 months. In 2021, 66% preferred to go cashless on smaller transactions of up to HKD100 ($12.90) - up from 56% in 2019.

• Make strategic business decisions, using top-level historic and forecast market data, related to Hong Kong's cards and payments industry and each market within it.
• Understand the key market trends and growth opportunities in Hong Kong's cards and payments industry.
• Assess the competitive dynamics in Hong Kong's cards and payments industry.
• Gain insights into marketing strategies used for various card types in Hong Kong.
• Gain insights into key regulations governing Hong Kong's cards and payments industry.