Credit Card Payment Market Size, Share & Trends Analysis Report By Card Type (General Purpose Credit cards, Specialty), By Brand (Visa, MasterCard), By Application (Food and Groceries, Health and Pharmacy, Restaurants and Bars, Consumer Electronics, Media and Entertainment, Travel and Tourism) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global credit card payment market size was valued at USD 498.3 billion in 2023 and is projected to reach a value of USD 960.6 billion by 2032, registering a CAGR of 8.5% during the forecast period 2024-2032. Rising online purchasing habits are driving credit card payments market share.

A credit card payment is using a credit card to complete a financial transaction or purchase. Credit cards are payment cards issued by financial entities such as banks or credit card firms that allow cardholders to borrow money up to a certain credit limit. The cardholder can use the credit card to make purchases, with the amount spent deemed a loan from the issuing institution.

The rise in demand for cash alternatives and the availability of low-cost credit cards worldwide are driving the growth of the worldwide credit card payments market. Furthermore, increasing demand for credit cards in developing countries has a beneficial impact on market growth. However, a surge in credit card fraud worldwide is likely to stifle the growth of the credit card payments market. On the contrary, technical advances in product offerings, such as using blockchain for greater security, will likely provide remunerative chances for market expansion during the projection period.

Highlights

General Purpose Credit cards account for the largest share of the market by card type.

Visa card generates the highest revenue share by Brand.

Food and Groceries are the most common application of the market.

Market Dynamics

Global Credit Card Payment Market Drivers:

Rise in E-Commerce and Online Transactions

The growth in e-commerce activities and the expanding popularity of online transactions have all contributed to the supremacy of credit card payments in the digital world. When shopping on numerous online platforms, consumers choose credit cards for ease, security, and buyer protection features. Credit cards will be the predominant payment method for online commerce in the United States in 2023. 99% of the largest internet shops accept credit cards. Credit and debit cards are the most popular payment methods for Internet transactions. This demonstrates how vital credit cards are in facilitating online transactions in one of the world's top e-commerce markets.

Major e-commerce platforms such as Amazon, Alibaba, and eBay extensively accept credit card payments. Credit card payments are seamlessly integrated into the e-commerce ecosystem because consumers use them to purchase various things, from electronics to fashion. E-commerce sales are predicted to increase by 10.4% in 2023, hitting USD 6.3 trillion by the end of the year. Analysts expect e-commerce revenues to total USD 8.1 trillion by the end of 2024. 

Moreover, the rapid expansion of online retail is a global phenomenon. In 2023, online retail sales in China comprised 27.6% of total retail sales, up from 27.2% in 2022. This is more than double the e-commerce retail share in 2016, when China was the world's largest online retail market. Credit cards are essential in supporting the digital transformation of retail transactions in these economies. As e-commerce grows globally, credit card companies and issuers may expect a steady increase in transaction volumes. This trend emphasizes the symbiotic relationship between the rise of online transactions and the widespread use of credit card payments to facilitate these digital commerce activities.

Global Credit Card Payment Market Restraints:

Security Concerns and Fraud Risks

The credit card payment infrastructure faces severe security problems and fraud risks. Despite advances in security technology, fraudsters continue to target credit card transactions, causing data breaches, identity theft, and illegal access to sensitive information. As of November 2023, there had been 318,000 documented cases of credit card fraud in the first three quarters of 2023. 65% of those who use credit or debit cards have been victims of credit card fraud at some point. 

Moreover, high-profile data breaches involving large retailers, financial institutions, and internet platforms have exposed millions of credit card details. In October 2023, Mallorca-based airline Air Europa had a data breach that compromised its customers' confidential financial information. The breach, discovered on October 10, revealed unauthorized access to customer payment information such as credit card numbers, expiration dates, and CCV codes. Alarmingly, the breach occurred 41 days earlier, on August 28, and went undiscovered until suspicious behavior was discovered.

Further, According to the Identity Theft Resource Center (ITRC), 2023 was the worst year for data breaches, with 3,205 reported. This represents a 78% increase from 2022 and 72% from 2021. The financial and retail industries continue to account for a significant part of all breaches, highlighting the ongoing threat to credit card data.

Global Credit Card Payment Market Opportunity:

Emergence of Cryptocurrency Integration

The growing interest in cryptocurrencies and blockchain technology opens up opportunities for credit card firms to integrate with digital assets. Some credit card issuers have already created cards that allow customers to spend cryptocurrency, bridging the gap between traditional and digital payment methods. Several credit card providers have launched crypto-enabled cards, allowing customers to spend their bitcoins on daily purchases. These cards are linked to the cardholder's cryptocurrency wallet, allowing for easy conversion of digital assets into fiat currency at the point of sale. For example, Crypto.com provides a Visa card, enabling customers to use their cryptocurrency holdings for global transactions. 

Additionally, the Fiat24 Card entered the market in July 2023, making it one of the most recent additions. The Fiat24 virtual Visa Debit Card is the first card that allows users to store cryptocurrency in ANY crypto wallet. The use of cryptocurrency-enabled cards is growing in popularity. As of June 2023, Crypto.com had 80 million active users. In 2021, the company had 10 million users; by 2022, it had over 50 million active users. This development emphasizes credit card issuers' ability to provide creative solutions that bridge the gap between traditional and digital modes of payment.

Thus, incorporating cryptocurrencies into credit card operations broadens the number of payment choices available to users. Users can easily use their cryptocurrency holdings for regular transactions, making it a versatile and handy payment mechanism. As the regulatory landscape matures and customer acceptance grows, credit card firms have the chance to pioneer creative solutions that appeal to a wide range of payment preferences, encouraging a harmonious coexistence of traditional and digital financial ecosystems.

Regional Analysis

North America Dominates the Global Market

The global credit card payment market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America is the most significant global credit card payment market shareholder and is estimated to grow at a CAGR of 8.7% over the forecast period. It can be attributed to various factors, including the rapid acceptance of credit cards in the regional economy. 70% of the US population uses credit cards, with 34% holding three or more.  According to Statista, the number of credit cards in the United States is predicted to grow by 25 million between 2024 and 2029, reaching 1.1 billion in 2029. As of 2022, the United States had over 572 million credit card accounts, with 84% of adults holding at least one. According to Experian, the average American has 3.84 credit cards, with an average credit limit of USD 30,365. Most Americans own multiple credit cards, most likely because doing so increases their credit limits as monies are dispersed among various channels.

Europe is anticipated to exhibit a CAGR of 9.0% over the forecast period due to an increase in loyalty programs and credit card reward points offered by companies to increase market share, as well as the growing popularity of credit cards among young people in developed countries such as the United Kingdom, Germany, and others. As of December 2023, Europe has over 810 million payment cards, with Visa and Mastercard being the biggest credit card issuers. In 2021, 37.99% of those aged 15 and up in 38 European countries owned a credit card. Iceland had the most significant percentage of credit card users (74%), while Albania had the lowest (4.94%). 

Furthermore, because individuals in this region rely more on cash transactions, many credit card companies provide numerous incentives to increase their market share and income potential, creating a profitable opportunity for the region's market.

The Asia-Pacific (APAC) area is a dynamic and fast-evolving credit card payments market, marked by a growing middle class, more digitalization, and shifting consumer preferences. Mobile payment networks such as Alipay and WeChat Pay have become ubiquitous in China, providing various financial services and essential payments. As of June 2023, 943 million Chinese individuals used mobile payments, accounting for more than 87.5% of all mobile internet users. This is the world's most excellent penetration rate (38.3%). In metropolitan regions, it is nearly 88%. This widespread use of mobile payment methods encourages credit card firms to incorporate digital solutions, emphasizing the necessity of user-friendly mobile applications and contactless payment possibilities.

Further, The growth in e-commerce activity, particularly during the COVID-19 pandemic, has increased reliance on credit cards for online transactions. Retail e-commerce sales in India are predicted to rise 17.5% by 2023. The Christmas season in 2023 is expected to strengthen Indian e-commerce platforms, with projected sales of INR 90,000 crore. This is a considerable 18%-20% gain over the previous year, fueled by an estimated 140 million internet shoppers. This trend emphasizes the importance of credit cards as a preferred method for online transactions, with consumers valuing their security and convenience.

Segmental Analysis

The global credit card payment market is segmented based on card type, Brand, and application.

The market is further segmented by card type into general-purpose credit cards and specialty cards.

General Purpose Credit cards account for the largest share of the market.

General Purpose Credit Cards

General-purpose credit cards are versatile financial tools that allow cardholders to make various purchases. These cards are not restricted to specific merchants or industries, allowing users to use them for regular online and offline purchases. General-purpose credit cards are often issued with a predetermined credit limit based on the cardholder's creditworthiness. They are widely accepted in various settings, including retail shops, restaurants, and service providers. Furthermore, credit cards frequently include features such as loyalty programs, cashback incentives, and introductory interest rates, making them popular among consumers looking for a universal payment solution.

Specialty

Specialty credit cards are designed for specific niches or target markets, with tailored features and rewards to fulfill the unique demands of cardholders in that market group. These cards are frequently meant to appeal to a specific demographic's hobbies, preferences, or lifestyle. Specialty credit cards may specialize in travel, dining, retail partnerships, or affinity programs. They offer particular benefits, unique discounts, or co-branded partnerships that appeal to the intended cardholder demographic. Specialty credit cards strive to improve the overall value proposition for customers with specialized spending habits or preferences.

Based on Brand, the market is fragmented into Visa and MasterCard.

Visa card generates the highest revenue share.

Visa

Visa is a worldwide payment network that enables electronic financial transfers and credit card transactions. Visa-branded credit cards are widely accepted in millions of locations globally, making them an attractive option for consumers and companies. Visa provides various credit card options, including general-purpose cards, rewards cards, and co-branded cards with other financial institutions. Visa cards, with their global presence and extensive network, are a versatile and accessible payment option for users in a variety of areas and businesses. For example, As of the first quarter of 2023, over 1.2 billion Visa credit cards were used worldwide. By the first quarter of 2023, there were around 921 million Visa debit cards in circulation in the United States, with more than 2.9 billion cards worldwide.

MasterCard

MasterCard, another major worldwide payment network, accepts electronic payments using its branded credit cards. MasterCard, like Visa, offers various credit card alternatives, including general-purpose rewards and co-branded cards. MasterCard's network is comprehensive, including many merchants and ATMs globally. The Brand is well-known for its commitment to innovation, security features, and collaborations with financial institutions to provide cardholders with a seamless and safe payment experience.

The market can be bifurcated by application into Food and Groceries, Health and Pharmacy, Restaurants and Bars, Consumer Electronics, Media and Entertainment, Travel and Tourism.

Food and Groceries are the most common applications of the market.

Food and Groceries

Credit cards are widely used to pay for meals and groceries. Consumers frequently use credit cards to pay for groceries and dining out. Credit cards in this category may provide rewards or cashback incentives for purchases made in supermarkets, grocery stores, and restaurants, making them an appealing payment alternative for people managing their household budgets.

Health and Pharmacy

Credit cards are utilized in the health and pharmacy industries for various purposes, including medical services, prescription drugs, and health-related spending. Credit cards may provide perks such as cashback or rewards for spending on healthcare-related items, adding value to cardholders in this area.

Impact of covid-19

The pandemic has far-reaching ramifications in all aspects of society. Compared to other industries, the impact on the credit card industry has been relatively mild, and the value of on-demand liquidity is more clear to customers. However, the industry's profitability has suffered significantly. Reduced international travel has impacted the foreign currency fees, which are a primary source of revenue for credit card companies.

Similarly, borrowers' stresses have resulted in significant increases in bad debt. Since the lockdown, consumers have shifted their spending from credit cards to debit cards as they pause larger purchases and use debit cards to pay for groceries, utilities, and other essential products and services.

According to the Reserve Bank of India data, credit card spending was Rs. 42,818 crores in June 2020, i.e., lower than the value of debit card Point of Sale (PoS) transactions, which was Rs 47,255 crore (RBI). For a prolonged period, only the sale of essential items was permitted. However, as the lockdowns were eased and the travel and retail activities increased, the market growth is expected to spur.

Recent Developments

• February 2024- American Express and Delta Air Lines unveiled upgraded Delta SkyMiles® American Express Cards, intended to improve the travel experience and provide everyday value to consumers and business owners.
• January 2024- Bank of America announced the availability of CashPro Insights, a digital application that analyzes data via the CashPro platform.
• February 2024- Barclays will acquire Tesco's retail banking unit.