How Credit Cards In Asia Are Losing Momentum

Asia’s three largest emerging economies, China, India, and Indonesia, have massive payments markets but moderate to low credit card penetration. China’s payments market is not just Asia’s but also the world’s largest at $40 trillion, while India’s is valued at $1.74 trillion and Indonesia’s at $362 billion. What is happening with credit cards in Asia.
The growth of credit cards in Asia growth, especially in these three countries, is not keeping pace with the broader payments market. Indeed, China’s credit card market has experienced a contraction in recent years, while growth has slowed sharply in India, and the Indonesian market is expanding more slowly than expected. Credit card penetration in China remains below 40%. In India and Indonesia, it is in the single digits: 3% and 6-7%, respectively.
All three countries face unique challenges in boosting credit card use, and it is questionable if they will ever achieve the rates of advanced economies in Asia like Japan, South Korea, Hong Kong, and Taiwan.
A Shrinking Chinese Credit Card Market
China’s credit card market is currently undergoing a significant contraction, with nearly 100 million cards canceled since 2022 and the total number in circulation falling to approximately 707 million by late 2025.
The immediate catalyst for the decline is tighter regulatory oversight. In 2022, Chinese regulators introduced strict rules to curb