According to the Market Statsville Group (MSG), the global credit card payment market the size should go from $148,380.0 million in 2021 at $284,979.2 million by 2030at 8.5 CAGR% from 2022 to 2030. A credit card offers high security features to transfer payments from one account to another, which increases the demand for credit cards among its users. In addition, credit cards offer many benefits to customers, including providing instant loans, increasing transaction security, and offering different credit ratings and cash back based on transactions from the user.
Rising demand for cash alternatives and availability of affordable credit cards across the globe is driving the growth of the global credit card market. Moreover, the increase in the demand for credit cards among young people in developing countries is having a positive impact on the growth of the market. However, factors such as an increase in credit card fraud across the globe are expected to hamper the market growth. On the contrary, technological advancements in product offerings such as the use of blockchain for enhanced security are expected to provide remunerative opportunities for market expansion over the forecast period.
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Global credit card payments market definition
A credit card is a payment card issued to cardholders to allow the cardholder to pay a merchant for goods and services based on the cardholder’s accumulated debt.
covid–19 Global Credit Card Payments Market Impact
The credit card market has experienced significant growth in recent years; however, due to the COVID-19 outbreak, the market witnessed a sudden growth in 2020. This is attributed to the implementation of lockdown by governments in majority of countries, increase in payment delays and job losses, and the borrowing of credit by individuals to cover day-to-day expenses.
The major players operating in the market are facing a positive impact from the COVID-19 outbreak and are witnessing an increase in their revenue. A number of vendors have reported an increase in their industrial profits during the second quarter of 2020. However, major market players are introducing new strategies to increase their market value and market share. There has been an increase in credit card fraud during the COVID-19 lockdown. Majority of the companies try to innovate solutions to provide safe and easy transactions to its customers. Card issuers use GPS technology to validate transaction location and protect against fraud. For example, Visa Mobile Location Confirmation allows Visa to access a credit card user’s location using their smartphone. This ensures that the user is physically present at the site where the transaction takes place.
Global credit card payments market dynamics
Drivers: Increase in demand for cash alternatives and availability of affordable credit cards
There is an increase in the demand for credit cards as they are easy to carry and also a good alternative to cash. As a result of the COVID-19 pandemic, the majority of people are trying to avoid cash and have increased the use of contactless credit cards. Additionally, companies are trying to publicize credit cards for everyday purchases. For example, MasterCard launched tap-and-go at subway stations and Fareback Friday, which allows the cardholder to use their contactless card at any participating subway in New York. Additionally, the rise in popularity of digital first point-of-sale credit cards for those with poor or decent credit like the Apple Card. Apple cardholders receive their rewards using the mobile version of the card versus the physical titanium card.
Constraints: Increase in credit card fraud worldwide
Credit card fraud is the most common type of identity theft. It is growing at a breakneck pace which is attributed to the COVID-19 pandemic. Additionally, the increase in phishing email, text message, and phone call attacks has made it more difficult for the scam to be carried out, limiting the growth of the market. According to the 2020 research report, losses due to payment card fraud reached approximately $28.65 billion globally. Additionally, the United States is the most exposed to credit card fraud with approximately one-third of total global losses; it has been estimated at around USD 11 billion through the end of 2020.
Additionally, the number of new payment app scams is increasing due to the evolution of e-commerce. In these cases, the product is not received or cannot be tracked by the customer. These factors are hampering the growth of the market.
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Scope of the Global Credit Card Payments Market
The study categorizes the credit card payments market based on card type and application regionally and globally.
By card type (Sales, million USD, 2017–2030)
- General Purpose Credit Cards
- Specialty credit cards and others
By Outlook app (Sales, million USD, 2017–2030)
- Food and groceries
- Health & Pharmacy
- Restaurants & Bars
- Consumer electronics
- Media and entertainment
- Travel & Tourism
Outlook by region (Sales, million USD, 2017–2030)
- North America
- The Netherlands
- Czech Republic
- The rest of Europe
- Asia Pacific
- South Korea
- Australia and New Zealand
- Rest of Asia-Pacific
- South America
- Rest of South America
- The Middle East and Africa
- Saudi Arabia
- United Arab Emirates
- South Africa
- North Africa
- Rest of MEA
The general purpose credit card segment represents the largest market share, by type of card
On the basis of card type, the credit card payments market is categorized into general purpose credit cards and specialty credit cards and others. In 2021, general purpose credit cards held the largest market share of 85.2% in the global credit card payments market. A general purpose credit card is issued for a set amount and can be topped up by consumers. It offers the same convenience and ease to consumers affiliated with debit cards as well as protection against fraud and error using a personal identification number (PIN). In addition, these cards are generally intended for customers with a good to excellent credit score. Additionally, travel credits, high rewards rates on spend, and rich redemption options are just a few of the perks that general purpose credit card holders can enjoy.
Electronic payments have brought about a paradigm shift in the financial sector by reducing liquidity. In keeping with this trend, general purpose credit cards have grown in popularity for cash management. For example, in January 2019, Green Dot Corporation acquired UniRush, LLC and its operating business, RushCard, a leading online direct-toprovider of consumer general purpose reloadable credit cards. This acquisition enhanced the growth prospects of the Green Dot Direct division among the tech-savvy urban and millennial consumer segments of financial services.
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Europe represents the highest CAGR during the study period
On the basis of region, the global credit card payments market has been segmented into North America, Asia–Pacific, Europe, South America, Middle East and Africa. Globally, Europe is estimated to hold the highest CAGR of 10.8% in the global credit card payments market over the forecast period. The market in Europe is analyzed in UK, Germany, France, Italy, Netherlands and Rest of Europe. Continuous technological advancements in the financial industry are driving the adoption of EMV and contactless technology by the public. In addition, the credit card is expected to remain an important payment method in European countries due to its ability to combine the offer of credit with a payment device.
The rise of technological advancements in computing power and storage, which have transformed the speed, accuracy and capabilities of data analysis to serve digital credit services, is expected to drive the market growth in Europe. Additionally, changing consumer expectations for flexibility, customization, and willingness to accept in any B2C relationship are expected to increase the market share in this region. In addition, about 80% of revenue is generated from interest paid by the consumer in this region. In addition, the acceleration of digital migration in Southern and Eastern Europe and the increased efforts of regulators for more efficiency and innovation to protect consumers against unfair practices constitute a major driver of the growth of the market.
Key Market Players in Global Credit Card Payments Market
Major vendors in the credit card market such as American Express, Chase, Citi, and Bank of America account for a significant share of the market. For example, in April 2021, American Express launched the Cashback credit card. The new card allows cardholders to earn uncapped cash back on every purchase, including when paying bills.
Key players in the global credit card payment market are: