Credit cards dominated the payment cards market in Hong Kong in terms of both volume and value during the period 2010-2014. This trend is set to continue.
According to a new report from Timetric, credit card transaction volume is forecast to increase
from 483 million payments in 2015 to 547 million in 2019, a CAGR of 3.17 percent. Meanwhile transaction volume is set to increase from US$72.9 billion to US$88.3 billion, a CAGR of 4.93 percent over the same period.
“Consumer lifestyles have changed drastically. Hong Kongers now spend more on lifestyle goods, such as smartphones and tablets, and recreation than ever before, resulting in increased use of personal loans and credit cards,” explained Manish Sah, analyst, Timetric. Pursuing tertiary education and dining out were also factors driving demand for credit cards.
In addition to premium credit cards, multi-currency cards are also gaining in popularity in Hong Kong. Banks are increasingly issuing dual- and multiple-currency credit cards to capitalise on the cross-border trade between Hong Kong and mainland China, as well as to cater the growing Chinese population working and studying in Hong Kong.