The use of cash continues to lose out to electronic direct/ACH and card payments in the Asia Pacific region, although paper transactions still remain important in some countries. Digital wallets continue gaining in popularity due to their convenience, and they are also being accepted by increasing numbers of merchants. Mobile m-commerce will therefore continue to be a particularly dynamic area of the market, helped by the high smartphone penetration in the region.
This report comes in PPT.
Debit cards lead card payment transactions in China, the region’s biggest market, which helps them lead in Asia Pacific overall. However, credit cards have a greater share of overall card transaction value in many of the region’s countries, including dwarfing debit card value in Japan. With credit card transactions expected to record the stronger CAGR over the forecast period, they will overtake debit transaction value in the region by the end of 2023-2028.
Although electronic direct/ACH transactions will continue to register a double-digit CAGR in personal payment transactions in Asia Pacific over the forecast period, financial cards will continue to dominate sales. Credit and debit cards will generate the bulk of new sales over 2023-2028, with credit cards even recording a slightly stronger CAGR than electronic direct/ACH transactions.
Revisions by South Korea’s financial authority in 2023 allow for increased utility and spending limits on credit cards targeted at teenagers. Samsung Card’s expansion of the Samsung iD Pocket card and Shinhan Card’s introduction of the My TeenS card reflect the industry’s response to evolving consumer needs. These changes enable teenagers to explore a broader range of businesses and services, emphasising responsible financial management.
Digital wallets, favoured for their ease of use, continue gaining in popularity, with almost 70% of consumers in China using WeChat Pay daily and just over half of Indian consumers using Paytm every day. However, almost 60% of consumers in Japan and nearly 40% of South Koreans have not used a digital wallet. A good way to pique consumer interest in digital wallets has been seen in South Korea, with the introduction, by Hyundai, of Apple Pay in early 2023.
This is the aggregation of ATM, charge, credit, debit, e-purse and retail cards. Note that smart cards are not included in financial cards.
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