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U.S. Cards and Payments Industry Analysis 2016-2024 - Shift in Consumer Spending Due to COVID-19 Could Drive Away $100Bn Annually from Credit Cards to Debit Cards

Research and Markets
·4-min read

Dublin, Nov. 17, 2020 (GLOBE NEWSWIRE) -- The "United States of America (USA) Cards and Payments - Opportunities and Risks to 2024" report has been added to ResearchAndMarkets.com's offering.

This report provides detailed analysis of market trends in the US cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cards, cash, direct debits, cheques, and credit transfers during the review-period (2016-20e).

The report also analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2020e-24f). It also offers information on the country's competitive landscape, including market shares of issuers and schemes.

The report brings together the publisher's research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers detailed regulatory policies and recent changes in regulatory structure.

This report provides top-level market analysis, information and insights into the US cards and payments industry, including:

  • Current and forecast values for each market in the US cards and payments industry, including debit, credit and charge.

  • Detailed insights into payment instruments including cards, cash, direct debits, cheques, and credit transfers. It also, includes an overview of the country's key alternative payment instruments.

  • e-Commerce market analysis.

  • Analysis of various market drivers and regulations governing the US cards and payments industry.

  • Detailed analysis of strategies adopted by banks and other institutions to market debit, credit and charge cards.

To promote electronic payments in the country, on August 5, 2019 the Federal Reserve Board announced that the country's federal reserve banks will develop a new instant payment system called FedNow. The new payment system will have a wider presence than others and will allow banks of every size in the country to provide instant payment services to their customers. The service will be available to both individuals and businesses and will allow a range of payments, including person-to-person, business-to-business, business-to-customer, customer-to-business, and government-to-person. The new payment system will operate 24 hours a day, seven days a week, 365 days a year, and the maximum limit will be $25,000 per transaction. It is likely to be launched in 2023 or 2024. The US already has two instant payment solutions in place: Zelle and Real-Time Payments (RTP). However, neither has universal penetration in the market or interoperability with one another.

The proliferation of challenger banks will drive competition in the banking space, thus helping to boost debit card holding. In August 2019, new challenger bank Zenus Bank commenced its operations after receiving approval from the US regulatory authorities. Customers receive a digital version of a Visa or Mastercard debit card within 15 minutes of account opening. Germany-based digital bank N26 had 250,000 customers as of January 2020, after commencing its operations in the US from August 2019.

While US consumers have traditionally been credit card-reliant, the pandemic is changing consumer spending behavior as recession looms and unemployment grows. According to Visa, its credit card volumes declined by 21% in May 2020 year on year. The shift in consumer spending could drive away $100bn annually from credit cards to debit cards over time as per Visa. In May 2020, JPMorgan Chase revealed credit card spending fell by 40% during March and early April compared to 2019.

Reasons to Buy

  • Make strategic business decisions, using top-level historic and forecast market data, related to the US cards and payments industry and each market within it.

  • Understand the key market trends and growth opportunities in the US cards and payments industry.

  • Assess the competitive dynamics in the US cards and payments industry.

  • Gain insights into marketing strategies used for various card types in the US.

  • Gain insights into key regulations governing the US cards and payments industry.

Key Topics Covered

  1. Payment Instruments

  2. Card-based Payments

  3. Merchant Acquiring

  4. e-Commerce Payments

  5. Buy Now Pay Later

  6. Mobile Proximity Payments

  7. P2P Payments

  8. Bill Payments

  9. Alternative Payments

  10. Payment Innovations

  11. Payment Infrastructure & Regulation

  12. Appendix

Companies Mentioned

  • Federal Reserve

  • Bank of America

  • Citibank

  • JPMorgan Chase

  • Wells Fargo

  • PNC

  • USAA

  • US Bank

  • FIS

  • Fiserv

  • Global Payments

  • Elavon

  • Vantiv

  • Square

  • Discover Financial Services

  • Visa

  • Mastercard

  • American Express

  • Discover

  • Star

  • Pulse

  • PayPal

  • Apple Pay

  • Google Pay

  • Samsung Pay

  • Amazon Pay

  • Walmart Pay

  • Masterpass

  • Click to Pay

For more information about this report visit https://www.researchandmarkets.com/r/r7t5c9

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