The Thailand card payments market is projected to achieve a compound annual growth rate (CAGR) of 9.2% from 2024 to 2028, ultimately reaching 3.3 trillion baht (approximately $94.5 billion) by 2028. This growth is attributed to the ongoing shift among consumers towards electronic payment methods, as detailed by GlobalData, a prominent data and analytics firm.
According to GlobalData’s Payment Cards Analytics, the value of card payments in Thailand experienced a substantial increase of 16.7% in 2022, driven by a boost in consumer spending. In 2023, the market further expanded, recording a 6.2% increase to 2.2 trillion baht ($62.5 billion).
“The rising utilization of payment cards is supported by growing awareness surrounding electronic payments and an increase in the banked population,” remarked Ravi Sharma, the lead banking and payments analyst at GlobalData.
He noted that government initiatives to promote electronic transactions and enhance payment infrastructure have been vital in encouraging the adoption of payment cards. As the nation rebounds from the impacts of the Covid-19 pandemic, sectors such as travel, tourism, and hospitality are witnessing growth, contributing to overall economic activity and supporting card utilization.
Credit and charge cards dominate the payment landscape, accounting for 92.8% of the total card payment value in 2023. Their popularity is mainly attributed to the rewards, discounts, cashback, and interest-free installment options they offer.
The emergence of a middle class and the young working demographic in Thailand are expected to further boost the adoption and use of credit and charge cards.
Conversely, debit cards made up only 7.2% of the total card payment value in 2023. Nonetheless, debit card payments are gaining traction thanks to a high level of banking access and government campaigns aimed at raising consumer awareness.
The growth of payment services in rural regions and the anticipated rise of digital-only banks are also expected to enhance debit card usage.
The Bank of Thailand has introduced measures to promote digital payments, including the Payment Systems Roadmap (2022-24), which seeks to advance digital payments by establishing an interoperable payment infrastructure, creating biometric standards for identity verification, developing cross-border payment solutions, and promoting widespread adoption of digital payment methods, including card payments.
“Thailand’s card payments market is on track for significant growth in the upcoming years, driven by the increasing embrace of digital payments and government efforts to advance electronic transactions,” stated Mr. Sharma.
“With cash usage gradually declining, the Thai card payments market is set for continued growth, expected to rise by 6.3% to reach 2.3 trillion baht ($66.4 billion) in 2024.”