Credit Card Global Market Report 2022

Credit Card Global Market Report 2022

  • May 2022 •
  • 175 pages •
  • Report ID: 6280264 •
  • Format: PDF
Major players in the credit card market are Citibank, American Express Company, Mastercard Incorporated, Visa Inc., JPMorgan Chase & Co., Mango Financial Inc., BBVA Compass Bancshares Inc, Total System Services Inc, The PNC Financial Services Group Inc., and Capital One Financial Corporation.

The global credit card market is expected to grow from $99.08 billion in 2021 to $101.98 billion in 2022 at a compound annual growth rate (CAGR) of 2.9%. The market is expected to grow to $106.67 billion in 2026 at a compound annual growth rate (CAGR) of 1.1%.

The credit card market consists of sales of credit card services by entities (organizations, sole traders, and partnerships) that are engaged in storing, processing, and transmitting payment card data.Credit cards are payment cards issued by banks and financial institutions that can be used to borrow funds.

Credit cards are mostly used for short-term financing of consumer goods and services.The credit limit is preset depending on the borrower’s credit rating and credit cardholders are charged interest each month by the credit card provider.

Only goods and services traded between entities or sold to end consumers are included.

The main types of credit cards are reward cards, credit builder cards, travel credit cards, balance transfer cards, and other types.The reward card refers to the card that issues certain rewards for the credit card holder based on the reward points and even offers some special offers that can be claimed based on the points.

The various card types are base, signature, and platinum. The different service providers involved are visa, Mastercard, Rupay, and other service providers.

Asia Pacific was the largest region in the credit card market in 2021.Western Europe was the second largest region in the credit card market.

The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

The rising demand for credit cards is expected to fuel the growth of the credit card market in the forecast period.The rise in demand for consumer credit and the benefits offered by credit cards encourage individuals to use credit cards.

According to TransUnion CIBIL Limited, an India-based credit information company, credit card debts and the number of accounts increased by 40.7% and 29.8% respectively with 44.5 million cards in circulation in 2019. Therefore, the rising demand for credit cards drives the growth of the credit card market.

The impact of COVID-19 on a new credit card is expected to hinder the growth of the credit card market.Consumers are dialing back on applying for credit cards and reducing balances as there are fewer chances to spend money due to economic recession.

Also, digitally-focused businesses such as Apple, which announced the satisfactory acceptance of its Apple Card, noticed lower spending across the board. According to data from Equifax’s Weekly U.S. National, Consumer Credit Trends published in July 2019, general-purpose bank credit card approvals average were around 1.2 million new cards per week until mid-March. The new accounts opened dropped to 672,000 by the week of March 29 and continued to decline to less than 500,000 new cards a week. Therefore, the impact of the COVID-19 recession restrains the growth of the credit card market.

The growing technological innovation is a key trend gaining popularity in the credit card market.Major corporations are concentrating on offering digital prepaid card services in emerging economies to attract a large consumer base for a prepaid credit card.

For example, in June 2020, in collaboration with the Mastercard alliance, Grab Holdings, Inc., a multinational ride-hailing company based in Singapore, launched a new card to facilitate cashless payments in the Philippines. With the card linked to Grab’s prepaid wallet, which includes 53 million global merchants that accept Mastercard, users can pay for anything online.

In September 2021, M2P, a company that provides digital infrastructure based in India acquired Wizi for a deal amount of $5 million.With this acquisition, the companies manage the credit card sector and enable the customers with benefits.

Wizz is a company that provides credit cards based in India. [i].

The countries covered in the credit card market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.