Credit Card Issuance Services Market Expected to Reach $952.2 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Credit Card Issuance Services Market," The credit card issuance services market was valued at $443.67 billion in 2021, and is estimated to reach $952.2 billion by 2031, growing at a CAGR of 8.2% from 2022 to 2031.

Financial organizations known as credit card issuer give consumers credit cards and credit limits. The application and approval procedure, card distribution, determining terms and perks, collecting payments from cardholders, and many other aspects of credit cards are all managed by issuer. In addition, credit card issuer decide how much credit to grant customers and ultimately decide whether or not providers will allow or deny a transaction they can complete.

Furthermore, major market players are undertaking various strategies to increase the competition and offer enhanced services to their customers. For instance, In August 2022, WebBank announced a collaboration with American Express to become a card issuer and participant in the American Express network. The collaboration allows WebBank to issue credit card and payment solutions that include American Express benefits. American Express selected WebBank as one of its key issuing banks focused on the fintech industry.

With the help of this collaboration the companies delivered more personal approach to credit card issuance services that build customer and bank relationship. Which provided a strategic advantage to the company and credit card issuance services market size. On the basis of issuer, the banks segment is the highest growing segment. This is attributed to the fact that banking institutions provide credit card issuance services which generally involves advice and execution of transactions on behalf of credit cards.

Moreover, banks also help with financial planning, manage client portfolios, and performs a variety of other financial services in relation to a client’s private financing choices with the help of credit card issuance services. In addition, unique credit card offers and discount on shopping by banks are driving the growth of the segment. Furthermore, the NBFCs segment is attributed to grow at a significant growth rate pertaining to the fact that businesses have become more focused toward non-banking financial institutions compared to banks, owing to quick credit card issuance service sanctions and easier application process for individuals, which propels the credit card issuance services market growth.

Based on region, North America attained the highest growth in 2021. The credit card industry has a big business in the region owing to the presence of four major companies such as Visa, MasterCard, American Express, and Discover. Furthermore, Americans are hugely dependent on credit cards as nearly 47% of the U.S. adults or about 120 million people have credit card debt. These factors propel the market growth in the region.

Furthermore, Asia-Pacific is attributed to grow at a significant growth rate pertaining to the fact that developing countries such as India and others are using cash payments, owing to which many credit card providers are taking this as an opportunity to increase their market share in the developing countries by providing various offers which enhances the growth of the market. In addition, developments in e-commerce and rise in credit card awareness among the developing nations as well as surge in preference for contactless payments propel the market growth.

COVID-19 had a negative impact on the credit card issuance services market. This is caused by implementation of lockdown by governments in majority of the countries, rise pay delays & job losses, and decline in borrowing credit by individuals to cover their daily expenses. Moreover, customers stopped taking new credit and focused on paying off their debts. This was attributed to the huge loss of jobs and lockdown by the government of respective countries across the globe. Furthermore, in the approaching years, it is anticipated that this aspect will present the credit card issuance services industry with numerous, very lucrative prospects.

Key Findings of the Study

• By type, the consumer credit cards segment led the credit card issuance services market trends in terms of revenue in 2021.
• By end user, the personal segment accounted for the highest credit card issuance services market share in 2021.
• By region, the North America accounted for the highest credit card issuance services market share in 2021.

The report analyzes the profiles of key players operating in the credit card issuance services market analysis such as American Express Company, Entrust Corporation., FIS, Fiserv, Inc., Giesecke+Devrient GmbH, GPUK LLP., Marqeta, Inc., Nium Pte. Ltd., Stripe, Inc., and Thales. These players have adopted various strategies to increase their market penetration and strengthen their position in the credit card issuance services market.