Thailand’s card payments to hit 3.3 trillion baht by 2028

Thailand’s card payments market is projected to achieve a compound annual growth rate (CAGR) of 9.2% from 2024 to 2028, reaching 3.3 trillion baht (US$94.5 billion) by 2028. This growth is driven by a consistent consumer shift towards electronic payments, according to data and analytics firm GlobalData.

Data from GlobalData’s Payment Cards Analytics indicates that card payment value in Thailand saw a 16.7% increase in 2022, attributed to a rise in consumer spending. The growth continued in 2023, with a 6.2% increase, reaching 2.2 trillion baht (US$62.5 billion).

“The use of payment cards has been steadily rising, fuelled by the growing awareness of electronic payments and an increase in the banked population,” noted 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, tourism, and hospitality sectors are experiencing growth, which is driving overall economic activities and supporting card usage.”

Credit and charge cards dominated payments, accounting for 92.8% of the overall card payment value in 2023. Their popularity stems from the rewards, discounts, cashback, and interest-free installment facilities they offer.

The rising middle class and young working population in Thailand are expected to further drive the adoption and usage of credit and charge cards. Conversely, debit cards accounted for 7.2% of the total card payment value in 2023. Despite this lower percentage, debit card payments have gained traction due to the strong banked population and government initiatives to increase consumer awareness.

Efforts to expand payment services in rural areas and the anticipated rise of digital-only banks are expected to bolster debit card penetration.

The Bank of Thailand has been proactive in promoting digital payments through initiatives such as the Payment Systems Roadmap (2022-24). This roadmap aims to develop digital payments by creating an interoperable payment infrastructure, establishing biometric standards for identity authentication, developing cross-border payment systems, and promoting widespread use of digital payments, including card payments, reported Bangkok Post.

“Thailand’s card payments market is set to experience robust growth in the coming years, driven by the increasing adoption of digital payments and government initiatives to promote electronic transactions,” Sharma added.

“With the gradual decline of cash usage, the Thai card payments market is poised for continued expansion, expected to grow by 6.3% to reach 2.3 trillion baht (US$66.4 billion) in 2024.”