Credit Card Market 2023-2030 by Type (Reward Card, Credit Builder Card, Travel Credit Card, Balance Transfer Card, Other Types), Card Type (Base, Signature, Platinum), Service Provider (Visa, Matercard, Rupay, Other Service Providers) – Partner & Customer Ecosystem (Product Services, Proposition & Key Features) Competitive Index & Regional Footprints by MarketDigits
Industry : Information Technology | Pages : 168 Pages | Published On : Jul 2023
The global credit card market is projected to experience growth, increasing from $99.08 billion in 2021 to $101.98 billion in 2022, with a compound annual growth rate (CAGR) of 2.9%. However, the Russia-Ukraine war has disrupted the global economic recovery from the COVID-19 pandemic, particularly in the short term. This conflict has resulted in economic sanctions on multiple countries, a surge in commodity prices, supply chain disruptions, and inflation across various markets worldwide. Despite these challenges, the credit card market is expected to reach $106.67 billion by 2026, with a CAGR of 1.1%.
The credit card market primarily involves entities engaged in storing, processing, and transmitting credit card data. Credit cards, issued by banks and financial institutions, enable individuals to borrow funds for the short-term financing of consumer goods and services. The credit limit is predetermined based on the borrower's credit rating, and cardholders are charged interest monthly by the credit card provider. Revenue in the market encompasses processing and service fees imposed by banks and financial institutions for handling card-based payments. The market value also includes the value of related goods sold by the service provider or included within the service offering. Only transactions between entities or sales to end consumers are considered in the market assessment.
A credit card is a type of payment card issued by banks or financial services companies, enabling cardholders to make purchases with the option to repay the amount later.
In terms of regional analysis, Asia Pacific held the largest share in the credit card market in 2022, followed by Western Europe. The credit card market report covers regions such as Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.
The credit card market encompasses various types of cards, including reward cards, credit builder cards, travel credit cards, balance transfer cards, and others. Reward cards provide cardholders with rewards based on accumulated points, offering special offers redeemable with those points. Different card types include base, signature, and platinum, and major service providers in this market include Visa, Mastercard, Rupay, and others.
The forecast period is expected to witness growth in the credit card market, driven by the increasing demand for credit cards. The demand for consumer credit and the benefits provided by credit cards incentivize individuals to use them. In Australia, for example, the Equifax Quarterly Consumer Credit Demand Index reported a 6% increase in credit card demand in June 2022 compared to June 2021. Overall consumer credit demand grew by 10.2% during the same period. Thus, the rising demand for credit cards fuels market growth.
However, the COVID-19 pandemic has had a negative impact on the credit card market. Economic uncertainties and reduced spending opportunities have led consumers to decrease credit card applications and balances. Even digitally focused companies like Apple, which introduced the Apple Card, experienced lower spending overall. Data from the Federal Reserve Bank of New York shows an 8.3% reduction ($76 billion) in credit card balances during Q2 2020, along with a 40% decline in new credit card applications. Hence, the recession caused by COVID-19 hampers the growth of the credit card market.
Technological innovation is a prominent trend in the credit card market. Major corporations are focusing on providing digital prepaid card services in emerging economies, aiming to attract a large consumer base for such cards. For instance, Grab Holdings, Inc., a multinational ride-hailing company based in Singapore, collaborated with Mastercard to launch a new card in the Philippines. This card facilitates cashless payments and is linked to Grab's prepaid wallet, which can be used for online payments at over 53 million global merchants accepting Mastercard. This technological innovation is gaining popularity and shaping the credit card market.
In September 2021, M2P, an Indian digital infrastructure provider, acquired Wizi, an Indian credit card company, for $5 million. This acquisition enables the companies to jointly operate in the credit card sector and offer benefits to customers. The entry regarding Wizi was published on August 1, 2010.
The credit card market report covers various countries, including Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, the UK, and the USA.
Market value refers to the revenue generated by enterprises from the sale of goods and/or services within a specific market and geography. These revenues are expressed in USD ($) unless otherwise stated and may come from sales, grants, or donations.
The revenues for a specified geography represent consumption values, meaning they are generated by organizations operating within the specified market, regardless of where the goods or services are produced. Resale revenues from further points along the supply chain or as part of other products are not included.
The credit card research report is part of a series providing credit card statistics, such as the global market size, regional shares, competitor analysis, detailed segment insights, market trends, opportunities, and any additional data required to succeed in the credit card industry. This comprehensive report offers an in-depth analysis of the current and future scenarios in the industry.
A selection of companies mentioned in this report includes:
- The American Express Company
- Mastercard Incorporated
- Visa Inc.
- JPMorgan Chase & Co.
- Mango Financial Inc.
- BBVA Compass Bancshares Inc.
- Total System Services Inc.
- The PNC Financial Services Group Inc.
- Capital One Financial Corporation
- The Bank of America Corporation
- Wells Fargo
- Discover Bank
- HDFC Bank Ltd.
- SBI Card and Payment Services Limited
- ICICI Bank Limited
- Axis Bank Limited
- Bank of Baroda
Credit Card Market Segmentations:
- Reward Card
- Credit Builder Card
- Travel Credit Card
- Balance Transfer Card
- Other Types
By Card Type:
By Service Provider:
- Other Service Providers
Table and Figures
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