Credit card Market Overview
Credit card Market Size was valued at USD 14351.2 Billion in 2022. The credit card market industry is projected to grow from USD 14955.4 Billion in 2023 to USD 20800.5 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.21% during the forecast period (2023 - 2032). Growing inclination for online buying and a growing emphasis on more flexibility and convenience are the key market drivers boosting the expansion of the market.
Source: Primary Research, Secondary Research, MRFR Data base and Analyst Review
Credit card Market Trends
Growing emphasis on improved flexibility and ease is driving the market growth
Market CAGR for credit card is being driven by the increased emphasis on greater flexibility. A credit card enables a user to borrow money from a financial institution, typically a bank; users agree to pay back the loan plus interest as specified by the card's terms. Furthermore, by enabling companies to purchase goods, resources, or equipment they need, it can help them build a strong credit history and make it simpler for them to get loans based on their credit score.
Additionally, a favorable market picture is provided by the increasing demand for credit card payments brought on by consumers' growing emphasis on greater convenience and flexibility. Accordingly, a growing number of consumers are choosing safe payment options, which is fueling the market's expansion. Furthermore, credit cards make it simple for people to make purchases in real establishments as well as online. In addition, credit cards help people avoid carrying around significant sums of cash and provide an extra security measure in the event of theft or loss, which makes them a desirable choice. These cards also come with a line of credit, which helps customers effectively manage their money. In addition, the option to pay down balances gradually gives users financial flexibility.
The growing popularity of online shopping among consumers worldwide is driving up demand for credit cards, which is supporting the market's expansion. Furthermore, credit cards are increasingly being used by people with hectic schedules as mobile payment methods. People's experiences are enhanced when card details can be entered easily or stored information may be used for online transactions. In addition, credit card payments are becoming a more seamless component of the checkout procedures on e-commerce platforms. Furthermore, the growing emphasis on subscription-based services is driving credit cards to become the preferred payment method for frequent online transactions, which is supporting the market expansion.
For instance Data from the Reserve Bank of India shows that in June 2020, credit card spending was Rs 42,818 crores, which is less than the amount spent on debit card Point of Sale (PoS) transactions, which totaled Rs 47,255 crore (RBI). For a long while, only sales of necessities were allowed. But when the lockdowns loosened and more people traveled and went shopping, market, demand for credit card supplements will increase due to increased emphasis on greater flexibility. Thus, result in driving the credit card market revenue.
Credit card Market Segment Insights
Credit card Card Type Insights
The credit card market segmentation, based on Card Type includes general purpose credit cards and specialty and other credit cards. The general purpose credit cards segment dominated the market. Because widely applicable to a variety of transactions, general purpose credit cards are flexible cards. They don't belong to any one merchant or industry and are widely accepted by many businesses. They also include the normal features of credit cards, like interest rates, lengths of credit limit, and methods of payment.
Credit card Application Insights
The credit card market segmentation, based on application, includes food and groceries, health and pharmacy, restaurants and bars, consumer electronics, media and entertainment, travel, and tourism, and other applications. The food and groceries generated the most income. because they provide increased security, convenience, and often give incentives or return on dining-related costs. Credit cards are being used more and more for necessities like groceries and food, which are necessary personal expenses.
Credit card Provider Insights
The credit card market segmentation, based on provider, includes Visa, MasterCard, and others. The visa generated the most income. because It runs an extensive network that links consumers, businesses, and financial institutions and makes safe and easy payments possible. It actively participates in financial inclusion programs with the goal of giving marginalized communities access to financial services.
Figure1: Credit card Market, by Provider,2022 & 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Credit card Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American credit card market area will dominate this market, owing to an the market is expanding due to technological developments in payment processing, such as the increasing use of mobile wallets and contactless payments.
Further, the major countries studied in the market report are The US, German, France, the UK, Canada, Italy, Spain, India, Australia, South Korea, China, Japan, and Brazil.
Figure2: CREDIT CARD MARKET SHARE BY REGION 2022 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Europe credit card market has the second-largest portion of the market due to the region's market expansion is being supported by a flourishing finance industry. Further, the German credit card market had the biggest market share, and the UK credit card market was the fastest growing market in the European region
The Asia-Pacific Credit card Market is anticipated to expand between 2023 and 2032 at the quickest CAGR. Growing consumer preferences for internet purchasing, which offers greater convenience, are fueling the market's expansion. Moreover, China’s credit card market had the biggest market share, and the Indian credit card market was the fastest growing market in the Asia-Pacific region.
Credit card Key Market Players& Competitive Insights
Leading market players are putting a lot of money on R&D to expand their product lines, which will help the market for weight reduction products grow. Additionally, market players are engaging in a range of calculated initiatives to increase their worldwide presence, with important market developments involving the introduction of new products, contracts, M&A transactions, increased investment, and cooperation with other enterprises. to grow and endure in an increasingly cutthroat and dynamic market, credit card industry must provide reasonably priced goods.
Manufacturing locally is one of the primary business techniques used by manufacturers to cut operational costs in the credit card industry to help customers and expand the market segment. In recent years, the credit card industry has provided some of the biggest benefits to medicine. Major players in the credit card market, including American Express, Banco Itau, Bank of America Merrill Lynch, Bank of Brazil, Bank of East Asia, Chase Commercial Banking, Diners Club, Hang Seng Bank, and others, are attempting to increase market demand by investing in research and development operations.
The American Express Company is a multinational financial services firm and bank holding company based in the United States that specialized in payment cards. Its headquarters are located in Lower Manhattan's Battery Park City area at 200 Vesey Street, popularly referred to as the American Express Tower. In general, AMEX cards are ranked from Green to Platinum to Black (Centurion), with a higher rank denoting a greater priority level. In April 2021, The American Express Cash back Credit Card is introduced by the American Express Company. Cardholders can earn unlimited rewards on all purchases and bill payments with the new card. Cardholders can also take advantage of Plan Item Installments, a feature that provides the option to pay off credit card debt in equal monthly installments at a fixed monthly cost and with 0% annual percentage rate.
Owned by Sumitomo Mitsui Financial Group, Inc., Sumitomo Mitsui Banking Corporation is a multinational banking and financial services company based in Japan. Its main office is in Tokyo, Japan's Yurakucho, Chiyoda neighborhood. ly, the firm is involved in the retail, corporate, and investment banking sectors. It serves a broad spectrum of customers, including private citizens, small and medium-sized businesses, multinational corporations, financial institutions, and government agencies, by offering financial goods and services. In April 2023, SMBC declared that it will triple its holdings to as much as 15% of US investment bank Jefferies Financial Group. As part of a bigger partnership, it enabled SMBC to advise and lend to investment-grade companies across the globe, while also enabling it to take on more formidable competitors.
Key Companies in the credit card market include
Credit card Industry Developments
August 2024: Amazon and Barclays have partnered to release a rewards-rich credit card in the UK. Existing Amazon Barclaycard customers receive 1% on all purchases made with Amazon, 0.5% is received during the first 12 months after making purchases outside Amazon, and this is reduced to 0.25% after that. On select shopping event days such as Cyber Monday and Black Friday, Amazon Prime customers get 2% back on every dollar spent with Amazon. Additionally, both the website and the app for Barclaycard enable customers to see their earned points and even exchange them for Amazon gift cards if they choose. No annual fees are associated with the card, and upon acceptance of the application, customers are provided with a £20 Amazon.co.uk gift card.
September 2024: Today, Axis Bank, one of the most prominent private players in the Indian banking sector, stated that it has added a new offering in the form of the Corporate Credit Card Suite for Start-Ups, designed under its New Economy Group (NEG). The corporate cards are aimed at entrepreneurs to ease their official travel and expenses as well as vendor payments allowing start-up businesses the needed ability to execute their activities with ease. This new offering consists of two cards, namely the Executive Corporate Credit Card suitable for founders and a Purchase Reward Credit Card that makes it easy to control expenses. With this launch, Axis Bank's New Economy Group (NEG) has once again demonstrated its intention to assist start-ups to grow and expand by offering financial solutions and support that meet their needs. These cards address the need for operational efficiency as they enable start-ups to distribute the limits between the T&E and purchase cards. They will also enable startups to gain more control and enhance visibility and growth while driving down costs.
Credit card Market Segmentation
Credit card Card Type Outlook
Credit card Application Outlook
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food and groceries
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health and pharmacy
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restaurants and bars
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consumer electronics
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media and entertainment
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travel, and tourism
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other
Credit card Provider Outlook
Credit card Regional Outlook
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North America
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Europe
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
| Report Attribute/Metric |
Details |
| Market Size2022 |
USD 14351.2 Billion |
| Market Size 2023 |
USD 14955.4 Billion |
| Market Size2032 |
USD 20800.5 Billion |
| Compound Annual Growth Rate (CAGR) |
4.21% (2023-2032) |
| Base Year |
2022 |
| Market Forecast Period |
2023-2032 |
| Historical Data |
2018- 2022 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Card Type, Application, provider, and Region |
| Geographies Covered |
North America, Europe, AsiaPacific, and the Rest of the World |
| Countries Covered |
The US, German, France, UK, Canada, Italy, Spain, India, Australia, South Korea, China, Japan, and Brazil |
| Key Companies Profiled |
American Express, Banco Itau, Bank of America Merrill Lynch, Bank of Brazil, Bank of East Asia, Chase Commercial Banking, Diners Club, Hang Seng Bank |
| Key Market Opportunities |
Growing inclinations towards e-commerce |
| Key Market Dynamics |
Increasing emphasis on improved ease and adaptability |
Frequently Asked Questions (FAQ) :
The credit card market size was valued at USD 14351.2 Billion in 2022.
The market is projected to grow at a CAGR of 4.21% during the forecast period, 2023-2032.
North America had the largest share in the market
The key players in the market are American Express, Banco Itau, Bank of America Merrill Lynch, Bank of Brazil, Bank of East Asia, Chase Commercial Banking, Diners Club, Hang Seng.
The general purpose credit cards dominated the market in 2022.
The food and groceries had the largest share in the market.
