Market Size of Credit Cards Industry
| Study Period | 2020 - 2029 |
| Market Size (2024) | USD 14.31 Trillion |
| Market Size (2029) | USD 17.14 Trillion |
| CAGR (2024 - 2029) | 3.67 % |
| Fastest Growing Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Credit Cards Market Analysis
The Credit Cards Market size in terms of transaction value is expected to grow from USD 14.31 trillion in 2024 to USD 17.14 trillion by 2029, at a CAGR of 3.67% during the forecast period (2024-2029).
Credit cards are a part of everyday life. The average credit card debt per borrower was USD 5,474 or about USD 617 higher than the year before. This shift may be due to inflation and marks a move in the wrong direction. Collectively, this adds up to USD 38 billion in new debt in a single quarter and represents a 15% increase year-over-year, and this is the largest change in two decades. In two decades, the percentage of transactions made by credit cards is higher for households with higher incomes. It jumps to 34% for households earning USD 100 million to USD 150 million and 44% for those earning over USD 150 million.
There is a similar trend when considering educational status and credit usage. 96% of college graduates hold a credit card, while only 52% still need to complete high school. Asian Americans (93%) and Caucasian Americans (88%) were the most likely demographic groups to hold credit cards. The average credit card interest rate is 24.08%, according to Forbes Advisor's credit card rate report as of mid-March 2023.
Paying off credit card bills in full every month is always the best course of action, but when that's not possible, it's still important to make the minimum payment. You can avoid a delinquent mark on your credit report and several credit card fees by making the minimum payment. Having a strong credit rating can help you qualify for the best credit cards and the most competitive rates for mortgages, auto loans, and other lending products.
Pre-pandemic payments as a percentage of the total balance were stable and followed normal seasonal trends. In the initial stages of the pandemic, this fell as delinquency increased due to government support or stimulus packages being set up and implemented. Once these were in place, rates started to rise with the usual fluctuation.
Credit Cards Industry Segmentation
A complete background analysis of the credit card market, which includes an assessment of the economy, market overview, market size estimation for key segments, emerging trends in the market, market dynamics, and key company profiles, is covered in the report.
The credit card market is segmented by card type. By card type, the market is sub-segmented into general-purpose credit cards and specialty and other credit cards. By application, the market is sub-segmented into food and groceries, health and pharmacy, restaurants, and bars, consumer electronics, media and entertainment, travel and tourism, and other applications. By provider, the market is sub-segmented into visa, mastercard, and others, and by geography, the market is sub-segmented into North America, Europe, Asia-Pacific, Latin America, the Middle East, and Africa.
The report offers market size and forecasts for the credit card market in value (USD) for all the above segments.
| By Card Type | |
| General Purpose Credit Cards | |
| Specialty & Other Credit Cards |
| By Application | |
| Food & Groceries | |
| Health & Pharmacy | |
| Restaurants & Bars | |
| Consumer Electronics | |
| Media & Entertainment | |
| Travel & Tourism | |
| Other Applications |
| By Provider | |
| Visa | |
| MasterCard | |
| Other Providers |
| By Geography | |||||||||
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Credit Cards Market Size Summary
The credit card market is experiencing a steady expansion, driven by its integral role in daily financial transactions and consumer spending habits. The United States holds a pivotal position in this global market, supported by a sophisticated financial infrastructure and a mature credit card industry. Major networks like Visa, Mastercard, American Express, and Discover, headquartered in the U.S., contribute to its dominance. The widespread acceptance of credit cards for various purchases, coupled with a culture of rewards and incentives, enhances their appeal among consumers. Additionally, North America's strong presence in e-commerce and digital payments further accelerates market growth, as credit cards are increasingly used for secure online transactions.
The competitive landscape of the global credit card market is characterized by fragmentation, with numerous international and regional players striving to innovate and enhance their offerings. Companies are actively engaging in strategic initiatives such as mergers, acquisitions, and technological upgrades to gain a competitive edge. Key players like American Express, Banco Ita√∫, and Bank of America Merrill Lynch are at the forefront, continuously improving their products and services. The market's growth trajectory is supported by these strategic moves, as well as the ongoing expansion of credit card usage across different demographics and regions, reflecting a broader trend towards digital and cashless transactions.
Credit Cards Market Size - Table of Contents
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1. MARKET DYNAMICS AND INSIGHTS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Usage of Credit Card give the bonus and reward points
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1.3 Market Restraints
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1.3.1 Interest rates on Credit Card
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1.4 Insights on Various Regulatory Trends Shaping the Market
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1.5 Insights on impact of technology in the Market
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1.6 Industry Attractiveness - Porter's Five Forces Analysis
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1.6.1 Bargaining Power of Buyers
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1.6.2 Bargaining Power of Suppliers
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1.6.3 Threat of New Entrants
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1.6.4 Threat of Substitutes
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1.6.5 Intensity of Competitive Rivalry
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1.7 Impact of High Inflation on Credit Card Market
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1.8 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Card Type
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2.1.1 General Purpose Credit Cards
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2.1.2 Specialty & Other Credit Cards
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2.2 By Application
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2.2.1 Food & Groceries
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2.2.2 Health & Pharmacy
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2.2.3 Restaurants & Bars
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2.2.4 Consumer Electronics
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2.2.5 Media & Entertainment
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2.2.6 Travel & Tourism
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2.2.7 Other Applications
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2.3 By Provider
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2.3.1 Visa
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2.3.2 MasterCard
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2.3.3 Other Providers
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2.4 By Geography
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2.4.1 North America
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2.4.1.1 United States
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2.4.1.2 Canada
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2.4.1.3 Rest of North America
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2.4.2 Europe
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2.4.2.1 UK
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2.4.2.2 Germany
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2.4.2.3 France
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2.4.2.4 Italy
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2.4.2.5 Netherlands
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2.4.2.6 Rest of Europe
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2.4.3 Asia-Pacific
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2.4.3.1 China
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2.4.3.2 Japan
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2.4.3.3 India
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2.4.3.4 Australia
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2.4.3.5 Singapore
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2.4.3.6 South Korea
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2.4.3.7 Rest of Asia-Pacific
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2.4.4 Middle East & Africa
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2.4.4.1 Saudi Arabia
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2.4.4.2 Egypt
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2.4.4.3 UAE
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2.4.4.4 Rest of Middle East and Africa
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Credit Cards Market Size FAQs
How big is the Credit Cards Market?
The Credit Cards Market size is expected to reach USD 14.31 trillion in 2024 and grow at a CAGR of 3.67% to reach USD 17.14 trillion by 2029.
What is the current Credit Cards Market size?
In 2024, the Credit Cards Market size is expected to reach USD 14.31 trillion.
