Credit Card Payments Market

Credit Card Payments Market Outlook - 2028

The global credit card payments market revenue was valued at $138.43 billion in 2020, and is projected to reach $263.47 billion by 2028, growing at a CAGR of 8.5% from 2021 to 2028. 

The COVID-19 pandemic has negatively impacted the credit card payments market, owing to limited consumer spending caused by rise in pay cuts and job losses across the globe. In addition to this, ban on travel, closing of various bars & restaurant and growing ban on essential and non-essential goods across the globe is adversely impacting the market growth.

A credit card is a piece of metal or plastic issued by a financial services company or banks, which allows cardholders to borrow funds to pay for goods and services with different types of merchants. Furthermore, credit cards provided by the banks and other fintech institutions help customer purchase different types of services on credit without having to put up cash at the point of sale. Instead, the charges accrue as a balance that must be paid off on a monthly billing cycle, giving the buyer more time to get the cash together.

Rise in demand for cash alternatives and availability of affordable credit cards across the globe boost the growth of the global credit card payments market size. In addition, rise in demand for credit card among the developing nations positively impacts the growth of the market. However, factors such as increase in credit card frauds across the globe is expected to hamper the credit card payments market growth. On the contrary, technological advancements in product offering like using blockchain for increased security is expected to offer remunerative opportunities for the expansion of the market during the forecast period.

By type, the general purpose credit cards segment garnered the largest credit card payments market share in 2020, and is expected to maintain its dominance in the upcoming years as general purpose credit cards offer an array of exclusive rewards and perks owing to which many credit card users are adopting premium cards. However, the specialty & other credit cards segment is expected to witness highest growth, owing to higher credit or spending limits provided by the banks for this credit cards as compared to others. In addition, various organizations are providing special credit cards to their employees for keeping tracks on employee spending on travel, purchases of inventory or supplies, and other responsibilities, which is propelling the growth of the market.

Region wise, the credit card payments market was dominated by North America in 2020, and is expected to retain its position during the forecast period. This is attributed to number of factors such as rapid penetration of credit card in the economy of this region. In addition, Americans are hugely dependent on credit cards as nearly 47% of U.S. adults or around 120 million people have credit card debt in 2020, which enhances the growth of the market. 

However, Europe is expected to witness significant growth during the forecast period, owing to rise in loyalty programs and credit card reward points provided by companies to increase their market share and growing trend of credit cards among the youths of developed nations, which include UK, Germany and other. In addition to this, people in this region are more inclined toward cash transaction, owing to which many credit card providers are providing various offers for enhancing their market share and to increase revenue opportunities which in turn is providing lucrative opportunity for the market in the region.    

The report focuses on growth prospects, restraints, and trends of the global credit card payments market analysis. The study provides Porter’s five forces analysis to understand impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the global credit card payments industry.

Segment Overview

The global credit card payments market is segmented on the basis of card type, application, provider, and region. In terms of card type, the market is divided into general purpose credit cards and specialty & other credit cards. Depending on application, it is fragmented into food & groceries, health & pharmacy, restaurants & bars, consumer electronics, media & entertainment, travel & tourism and others. On the basis of enterprise size, it is classified into Visa, MasterCard, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Competitive Analysis 

The key players profiled in the Credit Card Payments Market are American Express, Bank of America Corporation, Barclays PLC, Capital One, Citigroup Inc., JPMorgan Chase & Co, MasterCard, Synchrony, The PNC Financial Services Group, Inc., and USAA. These players have adopted various strategies to increase their market penetration and strengthen their position in the credit card payments industry. 

COVID-19 Impact Analysis

The COVID-19 pandemic has led to decline in the revenue of credit card payments market due to implementation of lockdown by governments in majority of the countries and rise in pay delays and job losses are increasing day-by-day. In addition, growth in lockdown and loss of jobs have led consumers to shift from credit card to debit cards as well as to reduce their spending limit, which is negatively impacting the growth of the market. Furthermore, shutdown of malls and growing travel restrictions across the globe have led to a significant decline in the conventional spending of the end users. In addition, various banks and fintech have started revising their credit card limits and interest rate, which will help them improve their losses suffered in the pandemic. 

Top Impacting Factors

Rise in Demand for Credit Cards Among the Developing Nations

Developing countries such as India, Hong Kong, and others have a huge working population and growth in adoption of digital payments systems among the working populations drive the growth of the credit card payments market. In addition, various countries are focusing on increasing the adoption of digital payments for their end users to reduce the spread of corona virus, which is driving the growth of the market. 
For instance, according to a research report published by Mastercard in 2020, 42% of Indians have increased the use of digital payment systems, which mainly include contactless credit cards, online payments, and others, which fuel the growth of the market. Furthermore, many companies are introducing beneficial points, rewards, and cashbacks to their customers for increasing their market share in developing nations, which is propelling the growth of the credit card payments market. 

Technological Advancement in Product Offering

Credit card has experienced a drastic change over decades, owing to the emergence of disruptive technologies. Credits card holders are facing frauds all across the globe and majority of the companies are trying to innovate advance analytical solutions to provide safe and easy transactions to its customers. For instance, in October 2020, Paytm a global provider of online payment application announced that it is coming up with credit cards to make it easier for new users to join the credit market. The new credit card will provide users a special feature that would allow users to manage their transactions and have full control over the card usage. 

Thus, growth in number of such developments across the globe is providing lucrative opportunity for the growth of the market. Furthermore, card issuers are investing in NFC technology, which allows credit card companies to offer contactless payment at one tap. It is an effective tool against online banking fraud as it uses tokenization, which completes the transaction without sharing the merchant’s actual credit card information, which is anticipated to provide lucrative opportunity for the credit card payments market. 

Key Benefits For Stakeholders

•  The study provides an in-depth analysis of the global credit card payments market forecast along with the current trends and future estimations to explain the imminent investment pockets.
•  Information about key drivers, restraints, & opportunities and their impact analysis on the global credit card payments market trends is provided in the report.
•  Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
•  The quantitative analysis of the market from 2020 to 2027 is provided to determine the market potential.

Key Market Segments

By Card Type 

•  General Purpose Credit Cards 
•  Specialty & Other Credit Cards

By Application

•  Food & Groceries
•  Health & Pharmacy
•  Restaurants & Bars
•  Consumer Electronics
•  Media & Entertainment
•  Travel & Tourism
• Others 

By Provider

•  Visa
•  Mastercard
•  Others 

By Region

•  North America
  •  U.S.
  •  Canada
•  Europe 
  •  UK
  •  Germany 
  •  France
  •  Italy
  •  Netherlands
  •  Rest of Europe
•  Asia-Pacific 
  •  China
  •  Japan
  •  India
  •  Australia
  •  Singapore
  •  South Korea
  •  Rest of Asia-Pacific
•  LAMEA
  •  Latin America 
  •  Middle East 
  •  Africa

Key Players

•  American Express
•  Bank of America Corporation
•  Barclays PLC
•  Capital One
•  Citigroup Inc.
•  JPMorgan Chase & Co
•  MasterCard
•  Synchrony
•  The PNC Financial Services Group, Inc. 
•  USAA

 Credit Card Payments Market Report Highlights