What Has Been The Evolution of the Credit Card Market in Recent Years?
The credit card market has seen considerable growth due to a variety of factors.
• There has been a modest expansion in the size of the credit card market in the past few years. The forecast suggests an increase from $105.39 billion in 2024 to $106.67 billion in 2025, with a compound annual growth rate (CAGR) of 1.2%.
This growth in the historical period can be traced back to factors such as changing consumer spending habits, rewards and incentive programs, transaction simplicity and access, the rise in online shopping and e-commerce, as well as international transactions and travel.
How Will the Credit Card Market?
The credit card market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the credit card market is forecasted to experience a slight increase in size, reaching $114.55 billion in 2029 with a compound annual growth rate (CAGR) of 1.8%.
The anticipated growth during this forecast period can be credited to several factors such as the adoption of contactless payment, the integration of security and fraud protection features, compatibility with mobile wallets, personalization and innovative card design, and the rise of the buy now, pay later (BNPL) scheme. Trending developments in this same time frame include tailored rewards programs, a concentration on sustainability, the usage of artificial intelligence, flexible payment alternatives, regulatory compliance, and data protection.
Which Factors Are Boosting Growth In The Credit Card Market?
Anticipated growth in the credit card market is likely to be driven by the escalating demand for credit cards during the forecast period. The combined factors of a surge in consumer credit demand and the attractive perks of credit cards are motivating more individuals to adopt their use. Based on data from the Equifax Quarterly Consumer Credit Demand Index June 2022, there was a 6% upswing in the demand for credit cards in Australia in 2022 compared to the same period in 2021. There was also an overall climb in consumer credit demand by 10.2% in 2022 in contrast to June 2021. Consequently, the growing appetite for credit cards fuels the expansion of the credit card market.
What Key Areas Define The Segmentation Of The Global Credit Card Market?
The credit card market covered in this report is segmented –
1) By Type: Reward Card, Credit Builder Card, Travel Credit Card, Balance Transfer Card, Other Types
2) By Card Type: Base, Signature, Platinum
3) By Service Provider: Visa, Mastercard, Rupay, Other Service Providers
Subsegments:
1) By Reward Card: Cashback Cards, Points-based Cards, Miles-based Cards, Category-specific Reward Cards
2) By Credit Builder Card: Secured Credit Cards, Student Credit Cards, Low-limit Credit Cards
3) By Travel Credit Card: Airline-branded Cards, Hotel-branded Cards, General Travel Rewards Cards, Premium Travel Cards
4) By Balance Transfer Card: Low Or 0% APR For Balance Transfers, Long-term Balance Transfer Cards, Introductory Offer Balance Transfer Cards
5) By Other Types: Business Credit Cards, Prepaid Credit Cards, Store Credit Cards, Co-branded Credit Cards, Corporate Cards
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What Trends Are Reshaping The Future Of The Credit Card Market?
Leading firms in the credit card sector are leveraging strategic alliances in order to boost technological synergy and extend their market presence. A strategic alliance usually involves a cooperative endeavor between multiple organizations, pooling their resources, competencies, and endeavors towards achieving shared targets or objectives. An illustrative example from June 2023 is the collaboration between Federal Bank Limited, a private sector bank based in India, and Scapia Technology Private Limited, an Indian Fintech enterprise, facilitating the launch of the Federal Scapia Co-branded Credit Card. Distinguishing features of this credit card include its lifetime-free membership, dispensing with any initial or yearly charges. It equips clients with the advantage of contactless payments along with a streamlined ‘Tap and Pay’ function for effortless transactions. The card is functional in more than 150 countries and is supported by an expansive network of more than one million traders that recognize Visa cards. Additionally, card users can accumulate Scapia Coins at a reward rate of 4% on all travel reservations made through the Scapia application.
Who Are the Key Players In The Credit Card Market?
Major companies operating in the credit card market include:
• SBI Card and Payment Services Limited
• JPMorgan Chase & Co.
• Bank of America Corporation
• Citigroup Inc.
• Wells Fargo & Company
• American Express Company
• Capital One Financial Corporation
• TD Bank N.A.
• Barclays plc
• U.S. Bancorp
• Truist Financial Corporation
• The PNC Financial Services Group Inc.
• HDFC Bank Ltd.
• ICICI Bank Limited
• Synchrony Financial
• Discover Financial Services
• SunTrust Banks Inc.
• Axis Bank Limited
• Navy Federal Credit Union
• BBVA Compass Bancshares Inc.
• Bank of Baroda
• Pentagon Federal Credit Union
• First National Bank of Omaha
• Credit One Bank
• Merrick Bank Corporation
• Comenity Capital Bank
• First Premier Bank
• Applied Bank
What Is The Most Dominant Region In The Credit Card Market?
Asia-Pacific was the largest region in the global credit card market share in 2024. Western Europe was the second largest region in the credit card market. The regions covered in the credit card market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
