Thailand’s card payments market is forecast to register a compound annual growth rate of 9.2 percent between 2024 and 2028 to reach THB3.3 trillion (USD 94.5 billion) in 2028, driven by a rise in consumer spending and a shift towards electronic payments.
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According to GlobalData card payment value in Thailand registered a growth of 16.7 percent in 2022, backed up by 6.2 percent growth in 2023, to reach THB2.2 trillion.
“The use of payment cards has been steadily rising, fueled by the growing awareness of electronic payments and an increase in the banked population,” said Ravi Sharma, lead banking and payments analyst at GlobalData.
“Government efforts to promote electronic transactions and expand payment infrastructure have also played a crucial role in driving the adoption of payment cards. As the country recovered from the impact of the Covid-19 pandemic, the travel and tourism and hospitality sectors are experiencing growth, which is driving the overall economic activities and supporting card usage.”
Credit and charge cards accounted for 92.8 percent of the overall card payment value in 2023, with their popularity attributed to the rewards, discounts, cashback, and interest-free installment facilities offered by these cards. The rise of the middle class and young working populations in Thailand is also expected to drive the adoption and usage of credit and charge cards, added Globaldata.
Debit cards accounted for only 7.2 percent of total card payment value in 2023, despite having gained popularity in Thailand, due to a strong banked population and government initiatives to raise consumer awareness. The expansion of payment services in rural areas and the expected rise of digital-only banks are also expected to further drive debit card penetration, the research firm added.
Adding to the use of card payments, the central bank of Thailand has taken steps to promote digital payments through initiatives such as the Payment Systems Roadmap, which aims to develop digital payments by creating an interoperable payment infrastructure, establishing a biometric standard for identity authentication, developing cross-border payment, and promoting widespread usage of digital payments.
Looking ahead more short term, the Thai card payments market is set for continued expansion and expected to grow by 6.3 percent to reach THB2.3 trillion in 2024.