Credit Card Market Size and Trends
The credit card market size is expected to grow from US$ 552.73 billion in 2023 to US$ 1057.48 billion by 2031; it is anticipated to expand at a CAGR of 8.4% from 2023 to 2031. The growing demand for convenient cash alternatives is one of the major factors fueling the growth of the credit card market.
Credit Card Market Analysis
Credit cards have become more and more popular over time because of their many benefits, including better security than debit cards, quicker payment processing, the ability to make interest-free payments, and more. Additionally, the industry is expanding due to the end consumers' quick adoption of credit cards for EMI purchases and the rise in the purchase of various pricey goods. Additionally, it offers end consumers extended warranties and purchase protection, which further fuels the market's expansion. The fact that many credit cards also provide travel, rental vehicles, and return protection is fueling the expansion of the credit card market worldwide.
Credit Card Market Overview
- A credit card is a thin piece of plastic or metal card that is provided by banks or financial services companies.
- It enables cardholders to borrow money to make purchases from a variety of retailers.
- Additionally, credit cards offered by banks and other fintech companies enable customers to pay for various services using credit rather than cash at the point of sale.
- Furthermore, the card offers various benefits, one of which is that the user can also convert his purchase into EMI and pay accordingly, which further boosts the growth of the credit card market.
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Credit Card Market: Strategic Insights
Market Size Value in US$ 552.73 billion in 2023 Market Size Value by US$ 1057.48 billion by 2031 Growth rate CAGR of 8.4% from 2023 to 2031 Forecast Period 2023-2031 Base Year 2023
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Credit Card Market: Strategic Insights
| Market Size Value in | US$ 552.73 billion in 2023 |
| Market Size Value by | US$ 1057.48 billion by 2031 |
| Growth rate | CAGR of 8.4% from 2023 to 2031 |
| Forecast Period | 2023-2031 |
| Base Year | 2023 |
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Credit Card Market Driver
Rising Demand for Credit Cards To Drive the Credit Card Market Growth
- As credit card provides easy access to credit, EMI facilities, incentives, and various offers, their demand is increasing worldwide. According to the Consumer Financial Protection Bureau, at the end of 2021, around 190.6 million adults out of the 258.3 million in the US had a credit card account in their name. Also, as per CapitalOne, about 75% of US households have at least one general-use credit card.
- Not just developed countries various developing countries are also witnessing the rise in the demand for credit cards. According to the report by the Reserve Bank of India (RBI), India recorded around 25 crore credit card-based merchant payments in April 2023. In addition, the country has around 8.5 crore credit card users in 2023, which increased from 7.5 crore in 2022.
- Hence, because of all the above factors, the demand for credit cards is increasing worldwide is fueling the credit card market growth.
Credit Card Market Report Segmentation Analysis
- Based on product type, the market is segmented into general-purpose credit cards and specialty credit cards. The general-purpose credit card segment is expected to hold a substantial credit card market share in 2023.
- The general-purpose credit cards segment is also expected to hold the highest CAGR over the forecast period particularly because this card provides a large array of exclusive rewards, along with different perks to the users.
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Credit Card Market Share Analysis By Geography
The scope of the credit card market is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is experiencing rapid growth and is anticipated to hold a significant credit card market share. The region consists of a large number of market players, including Bank of America Corporation, American Express, JPMorgan Chase & Co, and many more. Furthermore, the region is witnessing the rapid adoption of credit cards. According to the Federal Reserve Bank of Atlanta, 77% of adults in the US have at least one credit card. Also, as per the American Bankers Association, around 441 million people opened credit card accounts in the US in Q3 2022. Thus, all the above factors are fueling the growth of the market in the region.
Credit Card Market Report Scope
The "Credit Card Market Analysis" was carried out based on product type, service providers, application, and geography. On the basis of product type, the market is segmented into general-purpose credit cards and specialty credit cards. Based on service providers, the credit card market is segmented into Visa, Mastercard, and others. Based on application, the market is segmented into food and groceries, consumer electronics, health and pharmacy, restaurants and bars, media and entertainment, travel and tourism, and others. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
Credit Card Market News and Recent Developments
Companies adopt inorganic and organic strategies such as mergers and acquisitions in the Credit Card Market. A few recent key market developments are listed below:
- In August 2023, Citi Global Wealth unveiled the ULTIMA Mastercard credit card, which targeted Citi Private Bank clients across Asia, including Hong Kong and Singapore. Leveraging Citi’s full wealth continuum, the card delivers the best of the bank’s leading credit card franchise to serve better potential and existing ultra-high net worth clients in Asia
[Source: Citi, Company Website]
- In July 2021, Bank of America announced the launch of the Bank of America Unlimited Cash Rewards credit card, which allows clients to earn unlimited 1.5% cash back on all purchases. This new credit card is the latest among Bank of America’s suite of rewards cards, each designed to fit a variety of clients’ needs.
[Source: Bank of America, Company Website]
Credit Card Market Report Coverage & Deliverables
The Credit Card Market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. The market report "Credit Card Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas-
- Market size & forecast at global, regional, and country levels for all the key market segments covered under the scope.
- Market dynamics such as drivers, restraints, and key opportunities.
- Key future trends.
- Detailed PEST & SWOT analysis
- Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
- Industry landscape and competition analysis covering market concentration, heat map analysis, key players, and recent developments.
- Detailed company profiles.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Product Type, Service Providers, Application and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
The growing adoption of digital payment solutions is anticipated to play a significant role in the global credit card market in the coming years.
The global Credit Card Market was estimated to be US$ 552.73 billion in 2023 and is expected to grow at a CAGR of 8.4 % during the forecast period 2023 - 2031.
The key players holding majority shares in the global Credit Card Market are Bank of America Corporation, American Express, Citigroup Inc., Mastercard, and JPMorgan Chase & Co.
The global Credit Card Market is expected to reach US$ 1057.48 billion by 2031.
Rising demand for credit cards is the major factors that propel the global credit card market.
- Bank of America Corporation
- American Express, Citigroup Inc.
- Barclays
- HSBC
- Capital One
- JPMorgan Chase & Co
- Mastercard
- USAA
- SBI Cards and Payment Services Limited
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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