Global payment card spending increased by 4% in 2023, fuelled by online shopping, contactless payments and government initiatives to promote financial inclusion.
Food delivery and ride-sharing services help drive online spending
According to the latest Global Cards and Payments research published by RBR Data Services, a division of Datos Insights, global card expenditure has been boosted by the rise of e-commerce spending, which grew by 17% in 2023. As well as increased traffic to online merchants for clothing and electronics, consumers have also been spending more money on food deliveries and ride-sharing services. Online payments now account for one quarter of all card payments across the globe.
Government-led initiatives promoting the benefits of a cashless society have also helped drive global card spending. There are government schemes to boost card usage and improve financial inclusion in many countries worldwide, but especially in the Americas and Asia-Pacific, for example in Ecuador, Pakistan and India. The infrastructure that accepts contactless payments is also improving in these countries, making card spending as accessible and easy as possible.
Financial inclusion boosts debit card spending in developing markets
In the Middle East and Africa, where large unbanked and underbanked populations persist, significant strides are being made towards financial inclusion. This region has the highest proportion of prepaid card spending, at 7%, with these products serving as crucial entry points to formal banking services. Historically reliant on cash, countries in this region are experiencing a paradigm shift driven by digitisation, cutting-edge technology, and innovative fintech solutions.
While prepaid products exhibited the most rapid growth among all card types, they still make up the smallest share of global card spending. Debit products, however, continue to dominate, accounting for almost 60% of total card expenditure. This trend is particularly pronounced in lower-value retail transactions, where debit cards are increasingly supplanting cash as the preferred payment method. Europe, with its unparalleled level of financial inclusion, leads this trend with debit cards comprising over 70% of card spending.
Despite inflationary pressures driving credit card usage in several markets, the credit sector’s growth lagged behind both prepaid and debit segments. Economic instability worldwide has made consumers in all regions more debt-averse, with younger consumers particularly wary of accumulating debt.
Payment companies are innovating with QR code technology
It should be noted that cashless payments are not always card payments. Account‑based payment solutions that harness QR code technology are gaining significant traction, particularly in Asia-Pacific markets. Notable examples include PayNow in Singapore, QRIS in Indonesia, and PromptPay in Thailand. It is largely due to the rising popularity of these alternative payment systems that Asia-Pacific’s share of global card spending has fallen by two percentage points since 2022, to stand at just over 50%.
China’s economic challenges further impacted the region’s share of global card spending. A combination of declining industrial output, a weakened domestic property market, and increased consumer debt aversion post-pandemic led to a substantial decrease in Chinese card volume. Indeed, if China is excluded, global volume grew by 8%, rather than 4%.
Financial inclusion and fintech to drive prepaid growth
Daniel Dawson, who led the Global Cards and Payments research, commented “E-commerce is expected to drive spending over the next five years, with global purchase volume rising to US$62 trillion by 2029. Debit will continue to replace credit, and prepaid will see the fastest growth of all card types, driven by the continued effort to bank the unbanked, and an increase in fintech prepaid products.”
Notes to editors
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