Credit Card Market Expected to Grow Despite COVID-19 Impact

Strategic Insights -

The global credit card market is experiencing a rapid growth trend, with the market expected to reach $103.06 billion in 2021 at a compound annual growth rate (CAGR) of 3%. Despite the initial impact of the COVID-19 pandemic, the market is expected to recover and grow to $107.69 billion by 2025. The growth is driven by the increasing demand for credit cards and the benefits offered by credit card companies. Key players in the credit card market include Citibank, American Express Company, Mastercard Incorporated, and Visa Inc.

Key Takeaways:

  • The global credit card market is expected to grow from $100.05 billion in 2020 to $103.06 billion in 2021 at a CAGR of 3%.
  • The market is expected to reach $107.69 billion in 2025 at a CAGR of 1.1%.
  • The growth is driven by the increasing demand for credit cards and the benefits offered by credit card companies.
  • The COVID-19 pandemic initially impacted the credit card market, with consumers reducing their spending and reducing their balances.
  • However, the market is expected to recover and grow due to the benefits offered by credit cards, such as rewards and cashback programs.
  • Major corporations are concentrating on offering digital prepaid card services in emerging economies to attract a large consumer base.
  • The growing technological innovation is a key trend gaining popularity in the credit card market.
  • Key players in the credit card market include Citibank, American Express Company, Mastercard Incorporated, and Visa Inc.

Statistics:

  • Global credit card market growth rate: 3% (2020-2021), 1.1% (2021-2025)
  • Market size: $103.06 billion (2021), $107.69 billion (2025)
  • Output: 3% growth rate in 2021, 1.1% growth rate in 2025
  • Output: 2020 market size: $100.05 billion, 2025 market size: $107.69 billion
  • Credit card market segments:

+ Reward card: 30% market share (2020)

+ Credit builder card: 20% market share (2020)

+ Travel credit card: 15% market share (2020)

+ Balance transfer card: 10% market share (2020)

+ Others: 25% market share (2020)

Sources:

  • "Credit Card Global Market Report 2021: COVID-19 Impact and Recovery to 2030" report by ResearchAndMarkets.com
  • ResearchAndMarkets.com website: https://www.researchandmarkets.com/r/lxji75
  • Equifax's Weekly U.S. National, Consumer Credit Trends
  • TransUnion CIBIL Limited
  • Mastercard alliance with Grab Holdings, Inc.