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The credit card payments market size is estimated to grow by USD 155.9 billion at a CAGR of 8.06% between 2023 and 2028. In today's digital age, the retail industry is witnessing a significant shift towards online transactions. With the rising number of internet users and the growing emergence of mobile apps for shopping, traditional brick-and-mortar stores are facing stiff competition. Furthermore, the increased use of wireless networks and high-speed internet has made online shopping more convenient than ever before. E-commerce platforms offer customers the flexibility to shop from anywhere at any time, providing a seamless and personalized shopping experience. Additionally, the integration of advanced technologies such as artificial intelligence and machine learning enables retailers to offer customized product recommendations and personalized customer service. Overall, the convenience, flexibility, and personalization offered by online shopping are driving its adoption at an unprecedented rate.
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Credit cards have revolutionized financial transactions, offering convenience and flexibility for both cardholders and businesses. These plastic or metal payment cards issued by financial services providers allow cardholders to borrow money up to a certain credit limit and make financial transactions for purchases of goods and services. The billing cycle enables cardholders to pay off their debts in installments or in full during the billing period. Credit card payments have become a popular alternative to cash and checks, offering numerous benefits such as reward points, cashback, and fraud protection. Financial services companies and banks issue these cards and facilitate the processing of these financial transactions. Merchants accept credit card payments, making it easier for businesses to expand their customer base.
However, credit card payments come with risks such as credit card fraud, which can result in financial losses for both cardholders and financial services companies. Despite these risks, the market continues to grow, driven by increasing consumer preference for contactless payments and the convenience they offer. Credit card firms are continually innovating to meet the evolving needs of consumers and businesses, offering new features and benefits to stay competitive. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising number of online transactions is notably driving market growth. In today's digital age, the use of credit cards for financial transactions has significantly expanded beyond traditional brick-and-mortar merchants to include e-commerce activities and online purchases. Goods and services in various sectors such as food and groceries, health and pharmacy, restaurants and bars, consumer electronics, media and entertainment, travel and tourism, among others, can now be bought using credit cards. Merchants have embraced credit card payments as cash alternatives, with contactless payment technology, such as Visa and MasterCard, gaining popularity. However, this shift to digital transactions comes with its own set of challenges. Credit card frauds, including identity theft, phishing emails, payment app scams, and other disruptive technologies, pose a significant threat to consumers. To mitigate these risks, credit card firms are investing in advanced security measures such as NFC technology, tokenization, and blockchain. Despite these efforts, it is crucial for consumers to remain vigilant and protect their personal information. The COVID-19 pandemic has further accelerated the trend towards online commerce, with transaction volumes soaring as consumers turned to e-commerce platforms for their retail needs. Debit cards have also gained popularity as a cash alternative, and e-commerce sales have become a significant contributor to retail sales. Credit card companies continue to innovate and offer credit limits and other features to attract and retain customers. Thus, such factors are driving the growth of the market during the forecast period.
The rise in mobile biometrics for payment is the key trend in the market. The market is witnessing a notable shift towards mobile transactions, as consumers increasingly opt for cash alternatives. This trend is driving the innovation of secure payment technologies, such as contactless payment technology, NFC technology, and tokenization. Merchants across various sectors, including food and groceries, health and pharmacy, restaurants and bars, consumer electronics, media and entertainment, travel and tourism, are integrating these technologies to enhance the purchasing experience for consumers. Credit card firms are responding by offering more advanced features, such as higher credit limits, payment apps, and identity theft protection.
However, with the rise of mobile payments comes the risk of payment card fraud, including credit card frauds, phishing emails, and payment app scams. Disruptive technologies, such as blockchain, are being explored to address these concerns and ensure secure financial transactions. E-commerce activities, including online transactions on internet shops and e-commerce platforms, are also seeing a surge in credit card payments, making it crucial for credit card companies to prioritize security measures. Debit cards are also gaining popularity in the online retail and retail sales sectors. Overall, the integration of advanced payment technologies and biometric identification methods is set to revolutionize the credit card payment landscape, offering consumers a more convenient, secure, and efficient way to make purchases. Thus, such trends will shape the growth of the market during the forecast period.
The lack of awareness of online payment in developing economies is the major challenge that affects the growth of the market. In many developing economies, the adoption of credit card payments is still in its infancy due to consumer unfamiliarity with the benefits and limited awareness of the technology. Mobile payments, a potential alternative to credit cards, are yet to gain significant traction in these regions despite high internet penetration in certain countries. The lack of essential telecom infrastructure to support mobile payments in several developing nations hinders their adoption. LTE technology, crucial for error-free and uninterrupted mobile services, is still under development in Asian countries, resulting in modest adoption rates. The absence of these mobile payment transactions could impede the expansion of the credit card payments market in these regions. Goods and services purchased through credit cards or payment cards are increasingly popular in sectors such as food and groceries, health and pharmacy, restaurants and bars, consumer electronics, media and entertainment, travel and tourism, and more. Credit card firms offer borrowed funds up to a specific credit limit, enabling consumers to make financial transactions without the need for cash.
However, the risk of credit card frauds, including identity theft, phishing emails, payment card fraud, and payment app scams, remains a significant concern. Disruptive technologies like contactless payment technology, NFC technology, and tokenization are transforming the credit card payment landscape. These technologies offer enhanced security and convenience, making financial transactions more efficient. E-commerce activities, online transactions, and online commerce through internet shops and e-commerce platforms have significantly increased retail sales. Credit card companies have responded by offering various services, including debit cards, to cater to the growing online retail sector. Blockchain technology, a decentralized digital ledger, is gaining popularity in the financial sector due to its security and transparency features. It can potentially reduce the risk of credit card fraud and identity theft. As the world becomes increasingly digital, credit card payments and other payment cards will continue to play a crucial role in financial transactions, making it essential to address the challenges and ensure secure and efficient transactions. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
American Express Co. - The company offers wide range of credit cards such as American Express Membership Rewards Credit Card and SmartEarn Credit Card.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The consumer or individual segment is estimated to witness significant growth during the forecast period. Credit card payments have become a preferred financial transaction method for consumers in various sectors, including food and groceries, health and pharmacy, restaurants and bars, consumer electronics, media and entertainment, travel and tourism, among others. Goods and services purchased using credit cards offer convenience and flexibility, allowing consumers to borrow money and make purchases without the need for cash alternatives.
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The consumer or individual segment accounted for USD 226.9 billion in 2018. Credit card firms issue general-purpose credit cards, which can be used for a wide range of purchases, as well as specific cards for travel, retail, or other industries. However, with the increasing use of credit card payments comes the risk of credit card frauds. Identity theft, phishing emails, payment card fraud, and payment app scams are some of the disruptive technologies that pose a threat to consumers. Contactless payment technology, such as NFC (Near Field Communication) and tokenization, have been introduced to enhance security and reduce the risk of fraud. Visa and MasterCard, two of the leading credit card brands, have implemented various security measures to protect consumers' financial information. These measures include encryption, tokenization, and multi-factor authentication. Despite these efforts, credit card fraud remains a significant concern for both consumers and merchants. E-commerce activities, including online transactions, online commerce, internet shops, and e-commerce platforms, have seen a surge in credit card payments. Retail sales through credit cards accounted for a significant portion of total retail sales in 2020. Credit card companies have responded by offering incentives, such as rewards programs, to attract and retain customers. Blockchain technology, which is known for its security and transparency, is being explored as a potential solution to address credit card fraud and enhance security in financial transactions. As the use of credit cards continues to grow, it is essential for consumers and merchants to remain vigilant and take necessary precautions to protect against credit card fraud and other payment-related scams.
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North America is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Credit cards, issued by banks and financial services providers as metal or plastic cards, have become a preferred payment method for millions of cardholders worldwide. Businesses widely accept credit card services for various transactions, ranging from cashless purchases of food and groceries, health and pharmacy items, restaurants and bars, consumer electronics, media and entertainment, travel and tourism, to inventory purchases and staff expenses. Premium cards offer additional benefits like spending limitations and exclusive perks. However, the adoption of credit cards also brings risks, such as credit card fraud, which can be perpetrated through hardware like skimmers or digital methods like phishing, SQL injections, fraudulent online applications, and text messages. Technical advances and product offerings continue to evolve, with new card types and security measures being introduced to mitigate these risks. Credit card breaches at financial services companies and banks can lead to significant financial losses for both the institutions and their customers.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
Credit cards have become a popular mode of payment for both individuals and businesses due to their convenience and flexibility. Credit cards come in two forms: metal and plastic. Banks and financial services providers issue these cards to cardholders, enabling them to make purchases up to a certain credit limit during their billing cycle. Businesses accept credit card payments for various goods and services, including Food and Groceries, Health and Pharmacy, Restaurants and Bars, Consumer Electronics, Media and Entertainment, Travel and Tourism, and more. Premium cards offer additional benefits like spending limitations, rewards programs, and exclusive perks. However, credit card payments come with risks, such as credit card fraud. Criminals use various techniques like hardware skimmers, phishing, SQL injections, and fraudulent online applications to steal cardholders' private information. Technical advances and product offerings from financial services companies aim to mitigate these risks. Despite these risks, credit card adoption continues to grow, with digital payment methods becoming increasingly popular. Businesses must ensure their staff members are trained to handle credit card transactions securely and maintain adequate inventory to meet customer demand. Travel, especially, is a significant area for credit card usage, with many offering rewards programs tailored to this sector. In conclusion, credit cards remain a crucial aspect of the financial services landscape, offering convenience, rewards, and security, while requiring vigilance against potential fraud and breaches.
Market Scope |
|
Report Coverage |
Details |
Page number |
134 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.06% |
Market growth 2024-2028 |
USD 155.9 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.86 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 39% |
Key countries |
US, China, UK, Canada, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
American Express Co., Bajaj Finserv Ltd., Bank of America Corp., Bank of Montreal, Barclays Bank Plc, Capital One Financial Corp., Citigroup Inc., Credicard SA, Credit One Bank N.A., HDFC Bank Ltd., JCB Co. Ltd., JPMorgan Chase and Co., Malayan Banking Berhad, Mastercard Inc., Royal Bank of Canada, SYNCHRONY FINANCIAL, THE PNC FINANCIAL SERVICES GROUP INC., USAA, and Visa Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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