The Cards and Payments Industry in Hong Kong: Emerging Trends and Opportunities to 2020

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Hong Kong is a global financial hub, with few regulatory barriers for foreign banks and card payment participants. It has close ties with mainland China for smooth cross-border trade. The growing payment card market and favorable regulations encourage banks from mainland China and other overseas markets to expand into Hong Kong; Bank of China, Citibank and Standard Chartered have a strong presence in Hong Kong’s cards and payments industry.
Hong Kong’s payment card market is highly developed, with card penetration of 3.4 cards per individual. The average annual spend per card stood at US$4,339.7 in 2015 – higher than New Zealand, Singapore, South Korea, Taiwan and Japan.
Banking penetration is very high in Hong Kong, recording 96.1%. To increase this, the HKMA named HSBC, Standard Chartered and Bank of China as major financial service providers in November 2015. The banks are responsible for the release of financial products and services in phases to consumers in remote areas, senior citizens and unbanked consumers. High banking penetration resulted in an increase in the total number of bank accounts, and products such as consumer loans and payment cards.

Scope

• Hong Kong's cards and payments industry's competitive landscape

• Actual values for the Hong Kong cards and payments industry and forecast figures to 2020

• Key dynamics in all main segments of the market, including check payments, credit transfers, direct debits, payment cards and cash transactions

• An overview of the key alternative payment instruments in Hong Kong

• E-commerce market analysis and detail of online payment types

• Analysis of the key economic, infrastructural and business drivers affecting the Hong Kong cards and payments industry

• Profiles of the main competitors in the Hong Kong cards and payments industry

• Overview of strategies adopted by banks and other institutions to market debit, credit and charge cards

Key Highlights

What are banks doing to capitalize on the increasing cross-border trade between Hong Kong and mainland China? What are the other main factors driving these new product initiatives?

Which alternative payment instruments are gaining traction among Hong Kong consumers? What are the key features of these?

Which two leading scheme providers have also introduced payment solutions into Hong Kong? What are the key differences between the two competing systems?

Reasons to Buy

• Make strategic business decisions, using top-level historic and forecast market data, related to the Hong Kong cards and payments industry and each market within it.

• Understand the key market trends and growth opportunities in the Hong Kong cards and payments industry.

• Assess the competitive dynamics in the Hong Kong cards and payments industry.

• Gain insights into marketing strategies used for various card types in Hong Kong.

• Gain insights into key regulations governing the Hong Kong cards and payments industry.

EPS
HSBC
Standard Chartered
Bank of China
Bank of East Asia
DBS Bank
Citibank
Aeon Credit Service
MasterCard
Visa
American Express
Diners Club

Table of Contents

1 Definitions and Methodology

1.1 Definitions

1.2 Methodology

2 Key Facts and Events

3 Executive Summary

4 Payment Instruments

4.1 Current Payment Environment

5 E-Commerce and Alternative Payments

5.1 E-Commerce Market and Payment Methods

5.2 Alternative Payment Solutions

5.2.1 Octopus

5.2.2 PayPal

5.2.3 Apple Pay

5.2.4 MasterPass

5.2.5 Visa Checkout

5.2.6 Alipay

5.2.7 Tenpay

6 Regulations in the Cards and Payments Industry

6.1 Regulatory Framework

6.1.1 Measures to bring more transparency with regard to charges on credit cards

6.2 Anti-Money Laundering (AML)

6.3 Foreign Direct Investment (FDI) Regulations

7 Analysis of Cards and Payments Industry Drivers

7.1 Demographic and Economic Drivers

7.2 Infrastructure and Business Drivers

8 Market Segmentation and New Product Launches

8.1 Market Segmentation and Targeting

8.1.1 Consumer cards

8.1.2 Commercial cards

8.2 New Product Launches

9 Payment Cards

9.1 Payment Cards Market Analysis

9.1.1 Volume and value of payment card transactions by type

10 Debit Cards

10.1 Debit Card Market Analysis

10.1.1 Turnover per debit card and transaction values by channel

10.1.2 Debit card scheme and issuer shares in terms of transaction value

10.1.3 Debit cards comparison

11 Pay Later Cards

11.1 Pay Later Cards Market Analysis

11.1.1 Turnover per pay later card and transaction values by channel

11.1.2 Pay later cards scheme and issuer shares in terms of transaction value

11.1.3 Pay later cards comparison

12 Commercial Pay Later Cards

12.1 Commercial Pay Later Cards Market Analysis

12.1.1 Commercial pay later cards comparison

13 Prepaid Cards

13.1 Prepaid Card Market Analysis

13.1.1 Prepaid cards comparison

14 Appendix

14.1 Tables

14.2 Contact GlobalData

14.3 About GlobalData

14.4 GlobalData’s Services

14.5 Disclaimer

Table

Table 1: Key Definitions

Table 2: Annual Average Exchange Rate

Table 3: Hong Kong – Key Facts, 2015

Table 4: Regional Benchmarking of Hong Kong Payment Cards, 2015

Table 5: Hong Kong – Number of Banks, June 2016

Table 6: Hong Kong – Mode of Entry of Foreign Banks

Table 7: Cards for High-Income Consumers, 2016

Table 8: Cards for Travelers, 2016

Table 9: Cards for Shoppers, 2016

Table 10: Commercial Cards Comparison and Key Features, 2016

Table 11: Hong Kong – New Product Launches

Table 12: Hong Kong – Debit Cards Comparison and Key Features, 2016

Table 13: Hong Kong – Gold Credit Cards Comparison and Key Features, 2016

Table 14: Hong Kong – Premium Credit Cards Comparison and Key Features, 2016

Table 15: Hong Kong – Commercial Credit Cards Comparison and Key Features, 2016

Table 16: Hong Kong – Prepaid Cards Comparison and Key Features, 2016

Table 17: Hong Kong – Payment Instrument Transaction Values (HKD Trillion), 2011–2015

Table 18: Hong Kong – Payment Instrument Transaction Values (US$ Billion), 2011–2015

Table 19: Hong Kong – Payment Instrument Transaction Volumes (Million), 2011–2015

Table 20: Hong Kong – Number of Payment Cards in Circulation by Type (Million), 2011–2020

Table 21: Hong Kong – Volume of Payment Card Transactions by Type (Million), 2011–2020

Table 22: Hong Kong – Value of Payment Card Transactions by Type (HKD Billion), 2011–2020

Table 23: Hong Kong – Value of Payment Card Transactions by Type (US$ Billion), 2011–2020

Table 24: Hong Kong – Number of Debit Cards in Circulation (Million), 2011–2020

Table 25: Hong Kong – Debit Card Transaction Volumes and Frequency by Channel, 2011–2020

Table 26: Hong Kong – Debit Card Total and Average Transaction Values by Channel, 2011–2020

Table 27: Hong Kong – Debit Card Total and Average Transaction Values by Channel, 2011–2020

Table 28: Hong Kong – Number of Debit Cards in Circulation By Scheme (Million), 2011–2015

Table 29: Hong Kong – Debit Card Transaction Values By Scheme (HKD Billion), 2011–2015

Table 30: Hong Kong – Debit Card Transaction Values By Scheme (US$ Billion), 2011–2015

Table 31: Hong Kong – Debit Card Transaction Values by Issuer (HKD Billion), 2011–2015

Table 32: Hong Kong – Debit Card Transaction Values by Issuer (US$ Billion), 2011–2015

Table 33: Hong Kong – Number of Pay Later Cards in Circulation (Million), 2011–2020

Table 34: Hong Kong – Pay Later Cards Transaction Volumes and Frequency by Channel, 2011–2020

Table 35: Hong Kong – Pay Later Cards Total and Average Transaction Values by Channel, 2011–2020

Table 36: Hong Kong – Pay Later Cards Total and Average Transaction Values by Channel, 2011–2020

Table 37: Hong Kong – Number of Pay Later Cards in Circulation By Scheme (Thousand), 2011–2015

Table 38: Hong Kong – Pay Later Cards Transaction Values By Scheme (HKD Billion), 2011–2015

Table 39: Hong Kong – Pay Later Cards Transaction Values By Scheme (US$ Billion), 2011–2015

Table 40: Hong Kong – Pay Later Cards Transaction Values By Issuer (HKD Billion), 2011–2015

Table 41: Hong Kong – Pay Later Cards Transaction Values By Issuer (US$ Billion), 2011–2015

Table 42: Hong Kong – Number of Credit Cards in Circulation (Million), 2011–2020

Table 43: Hong Kong – Credit Card Transaction Volumes and Frequency by Channel, 2011–2020

Table 44: Hong Kong – Credit Card Total and Average Transaction Values by Channel, 2011–2020

Table 45: Hong Kong – Credit Card Total and Average Transaction Values by Channel, 2011–2020

Table 46: Hong Kong – Number of Credit Cards in Circulation By Scheme (Thousand), 2011–2015

Table 47: Hong Kong – Credit Card Transaction Values By Scheme (HKD Billion), 2011–2015

Table 48: Hong Kong – Credit Card Transaction Values By Scheme (US$ Billion), 2011–2015

Table 49: Hong Kong – Number of Charge Cards in Circulation (Thousand), 2011–2020

Table 50: Hong Kong – Charge Card Transaction Volumes and Frequency by Channel, 2011–2020

Table 51: Hong Kong – Charge Card Total and Average Transaction Values by Channel, 2011–2020

Table 52: Hong Kong – Charge Card Total and Average Transaction Values by Channel, 2011–2020

Table 53: Hong Kong – Number of Charge Cards in Circulation By Scheme (Thousand), 2011–2015

Table 54: Hong Kong – Charge Card Transaction Values By Scheme (HKD Billion), 2011–2015

Table 55: Hong Kong – Charge Card Transaction Values By Scheme (US$ Million), 2011–2015

Table 56: Hong Kong – Personal and Commercial Pay Later Cards Transaction Volumes (Million), 2011–2020

Table 57: Hong Kong – Personal and Commercial Pay Later Cards Transaction Values (HKD Billion), 2011–2020

Table 58: Hong Kong – Personal and Commercial Pay Later Cards Transaction Values (US$ Billion), 2011–2020

Table 59: Hong Kong – Number of Commercial Pay Later Cards in Circulation (Thousand), 2011–2020

Table 60: Hong Kong – Commercial Pay Later Cards Transaction Volumes (Million), 2011–2020

Table 61: Hong Kong – Commercial Pay Later Cards Transaction Values (HKD Billion), 2011–2020

Table 62: Hong Kong – Commercial Pay Later Cards Transaction Values (US$ Billion), 2011–2020

Table 63: Hong Kong – Number of Prepaid Cards in Circulation (Million), 2011–2020

Table 64: Hong Kong – Prepaid Card Transaction Values (HKD Billion), 2011–2020

Table 65: Hong Kong – Prepaid Card Transaction Values (US$ Billion), 2011–2020

Figures

Figure 1: Hong Kong – Payment Instrument Shares by Transaction Value (%), 2011 vs 2015

Figure 2: Hong Kong – Payment Instrument Shares by Transaction Volume (%), 2011 vs 2015

Figure 3: Hong Kong – E-Commerce Value (US$ Billion) and Payment Methods (%)

Figure 4: Hong Kong – Population and Economic Indicators

Figure 5: Hong Kong – Number of ATMs and POS Terminals, and Real Household Consumption

Figure 6: Hong Kong – Cards and Payments Industry Segmentation by Card Type, 2016

Figure 7: Hong Kong – Growth in Payment Card Transaction Values and Number of Cards in Circulation by Type, 2011–2020

Figure 8: Hong Kong – Volume and Value of Payment Card Transactions by Type (%), 2011–2020

Figure 9: Hong Kong – Debit Card Penetration and Number of Cards in Circulation, 2011–2020

Figure 10: Hong Kong – Turnover Per Debit Card and Transaction Values by Channel, 2011–2020

Figure 11: Hong Kong – Debit Card Scheme and Issuer Shares in Terms of Transaction Value (%), 2015

Figure 12: Hong Kong – Pay Later Cards Penetration and Number of Cards in Circulation, 2011–2020

Figure 13: Hong Kong – Turnover Per Pay Later Card and Transaction Values by Channel, 2011–2020

Figure 14: Hong Kong – Pay Later Card Scheme and Issuer Shares in Terms of Transaction Value (%), 2015

Figure 15: Hong Kong – Personal vs Commercial Pay Later Cards, Transaction Volumes and Values (%), 2011–2020

Figure 16: Hong Kong – Number of Commercial Pay Later Cards in Circulation, Transaction Values and Volumes, 2011–2020

Figure 17: Hong Kong – Number of Prepaid Cards in Circulation and Transaction Value, 2011–2020

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