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Credit Card Global Market Report 2021: COVID-19 Impact and Recovery To 2030

·4-min read

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.

New York, June 22, 2021 (GLOBE NEWSWIRE) -- announces the release of the report "Credit Card Global Market Report 2021: COVID-19 Impact and Recovery To 2030" -
, and Capital One Financial Corporation.

The global credit card market is expected to grow from $100.05 billion in 2020 to $103.06 billion in 2021 at a compound annual growth rate (CAGR) of 3%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $107.69 billion in 2025 at a 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 credit card market covered in this report is segmented by type into reward card, credit builder card, travel credit card, balance transfer card, others, by card type into base, signature, platinum, by a service provider into visa, mastercard, rupay, others.

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

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.

In January 2018, Scotiabank, a Canada-based financial services company announced that its Colombian subsidiary, Banco Colpatria Multibanca Colpatria S.A. (Banco Colpatria), acquired the consumer (retail and credit card) and small and medium enterprise operations of Citibank in Colombia for an undisclosed amount. Through this acquisition, Citibank will allow Scotiabank to serve new customers in Colombia and to increase scale within the Colombian banking sector, as well as the other Pacific Alliance economies of Mexico, Chile, and Peru. Citibank, a USA based financial services company engaged in providing a wide range of credit card, baking, investment, and wealth management services.

The rising demand for credit card 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 card drives 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.

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

Read the full report:

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