Hong Kong (China SAR) payment card transaction value (including point of sale (POS) payments and ATM cash withdrawals) is expected to reach HKD1.8 trillion ($233.6 billion) in 2029, supported by well-developed banking and payment infrastructure, and the growing preference for contactless payments, reveals GlobalData, a leading data and analytics company.
GlobalData’s Payment Card Analytics reveals that card payments (including payments at POS and those initiated remotely) in Hong Kong registered a strong compound annual growth rate (CAGR) of 8.8% between 2020 and 2024. However, the value is expected to register a slower growth of 4.5% in 2025 due to the geopolitical tensions, and the ongoing trade tariff issues with the US.
The country’s GDP growth rate decreased from 3.3% in 2023 to 2.5% in 2024 and is estimated to further decrease to 2.1% in 2025. On the other hand, cash withdrawals value is expected to register a slower growth of 1.7% in 2025e, a similar trend is anticipated going forward.
Kartik Challa, Banking and Payments Senior Analyst at GlobalData, comments: “A high adult population and a well-established payment infrastructure have encouraged the adoption of electronic payments. In addition, the proliferation of digital-only banks, the uptake of contactless payments, and their implementation of electronic payments into public transport systems all encouraged the shift away from cash. This shift in consumer behavior signals a move away from conventional payment approaches to embrace digital alternatives.”
Card payments dominate transaction value in Hong Kong, accounting for 87.2% of total payment-card transaction value in 2025 versus 12.8% for ATM cash withdrawals. High card penetration and a mature payments ecosystem—supported by cashback and reward incentives, instalment offerings, and broad merchant acceptance—drive this split. The government’s digital payments’ push, greater digitalization of banking services, and expanded contactless acceptance have further accelerated card usage, while cash withdrawals continue to grow only modestly in value terms.
Hong Kong boasts a well-developed payment infrastructure with POS terminal penetration per one million individuals standing at 27,992 in 2025e, one of the highest in the Asia-Pacific (APAC) region. Beyond traditional POS devices, mobile POS solutions target SMEs—an important market given there were 356,128 SMEs as of March 2025, representing more than 98% of businesses.
The growing adoption of contactless payment will also contribute to the overall card usage at POS. Hong Kong has been actively integrating contactless payment systems into its public transportation network, enhancing convenience and efficiency for commuters.
In August 2024, Mastercard announced its integration into the MTR Corporation’s contactless credit and debit card payment services. This advancement permits passengers to utilize their contactless payment cards at MTR entry and exit gates when traveling on the MTR heavy rail network, excluding the Airport Express.
Challa concludes: “Hong Kong is among the most mature countries in the region, when it comes to card payments. This shift towards digitalization is facilitated by the widespread familiarity with electronic payments, a high banked population, and a well-established POS infrastructure. The payment cards market is forecasted to grow at a CAGR of 4.9% between 2025 and 2029.”
