APAC card market to grow 13.7% in 2022

China remains king of the credit and charge card market in the region.

The credit and charge cards market in the Asia Pacific region will grow 13.7% in 2022 on the back of economic recovery, rising consumer disposable income, and the rise of electronic payments, forecasted GlobalData, a payments and analytics firm.

The credit and charge card payments value in APAC registered a compound annual growth rate (CAGR) of 14.3% from $6.5t in 2017 to $12.7t in 2022, according to GlobalData’s Payment Cards Analytics. 

It is expected to grow further at a CAGR of 9.5% over 2022 to 25 and reach $16.7t in 2025.

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This is despite the adoption of credit and charge cards being slower in the region compared to the West, noted Nikhil Reddy, senior payments analyst for GlobalData.

“This is, however, gradually changing due to rising middle-income population, growing financial awareness, and banks offering lucrative benefits in terms of reward programs and instalment facilities,” Reddy said.

APAC countries easing lockdown and travel restrictions will push economic activities and positively contribute to consumer spending and support credit and charge card payments growth.

Per market, China remains king of credit and charge payments. The Red Dragon’s cards market is poised to expand 14.5% in 2022 and reach $10.4b. Following China is Japan, with an expected card payments market valued at $756b; South Korea, $705.9b; and Australia, with a $243.1b market in 2022.

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Countries such as the Philippines, Indonesia, India, Thailand, and Vietnam still see low credit card adoption but will see card adoption grow thanks to government support.