The card payments market in Thailand is projected to grow at a compound annual growth rate (CAGR) of 9.2% from 2024 to 2028.
By 2028, the market is expected to reach 3.3 trillion baht ($94.5 billion), driven by a consistent shift towards electronic payments, according to GlobalData, a leading data and analytics company.
GlobalData’s Payment Cards Analytics revealed that the value of card payments in Thailand grew by 16.7% in 2022, mainly due to increased consumer spending. This upward trend continued, with a growth rate of 6.2%, reaching 2.2 trillion baht ($62.5 billion) in 2023.
Ravi Sharma, lead banking and payments analyst at GlobalData, noted that the use of payment cards has been steadily rising, supported by growing awareness of electronic payments and an increase in the banked population.
Government initiatives to promote electronic transactions and improve payment infrastructure have also been essential in boosting the adoption of payment cards.
As Thailand recovers from the impact of the Covid-19 pandemic, sectors like travel, tourism, and hospitality have rebounded, stimulating economic activities and encouraging card usage.
Credit and charge cards remain the preferred payment method, accounting for 92.8% of the total card payment value in 2023. Their popularity is attributed to benefits such as rewards, discounts, cashback, and interest-free installment options.
The expanding middle class and a young working population in Thailand are expected to further increase the use of credit and charge cards.
In contrast, debit cards accounted for only 7.2% of the total card payment value in 2023. However, debit card payments have gained popularity due to a strong banked population and government efforts to raise consumer awareness.
The expansion of payment services into rural areas, along with the anticipated rise of digital-only banks, is also expected to boost debit card usage.
The Bank of Thailand has been actively promoting digital payments through its Payment Systems Roadmap (2022-24).
This plan focuses on developing an interoperable payment infrastructure, setting a biometric standard for identity verification, enhancing cross-border payments, and encouraging widespread digital payment adoption, including card transactions.
“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 Mr 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 2.3 trillion baht [$66.4 billion] in 2024.”
