A consumer shift towards electronic payments will see the Thai card payments market register a compound annual growth rate of 9.2% between 2024 and 2028, reaching THB3.3 trillion baht (AUD145.6 billion) in 2028, according to GlobalData research.
GlobalData’s Payment Cards Analytics reveals that card payment value in Thailand grew by 16.7% in 2022, driven by rising consumer spending. In 2023, the value grew further to register growth of 6.2%, reaching THB2.2 trillion (AUD97.1 billion).
“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 GlobalData’s Banking and Payments Analyst Ravi Sharma. “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 the overall economic activities and supporting card usage.”
Credit and charge cards are favoured for payments and accounted for 92.8% of the overall card payment value in 2023. The popularity of credit and charge cards can be 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 driving the adoption and usage of credit and charge cards.
On the other hand, debit cards accounted for only 7.2% of total card payment value in 2023. However, debit card payments have 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 should drive further debit card penetration.
Thailand’s central bank has taken steps to promote digital payments through initiatives such as the Payment Systems Roadmap (2022-2024). This roadmap 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, including card payments.
“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,” said Sharma. “With the gradual decline of cash usage, the Thai card payments market is poised for continued expansion and expected to grow by 6.3% to reach THB2.3 trillion (AUD101.5 billion) in 2024.”
