Global Credit Card Transactions Market Overview, 2024-29

Global Credit Card Transactions Market Overview, 2024-29

The global credit card transaction market stands as a cornerstone of modern financial infrastructure, facilitating billions of transactions annually and serving as a linchpin in the global economy. It encompasses a vast ecosystem of financial institutions, payment processors, merchants, and consumers, all interconnected through a network of credit card transactions. Credit cards have become widely used as a result of technological advancements and the advent of digitalization. They give customers a flexible, safe, and easy way to make purchases both online and offline, as well as access to credit facilities for managing their finances and meeting their needs. Numerous reasons, including changing consumer purchasing patterns, the rapid expansion of e-commerce, globalisation, and the increasing acceptance of digital payment solutions, are driving the market's growth. However, it also faces challenges, such as security concerns, regulatory complexities, economic uncertainties, and interchange fees, which necessitate continuous innovation, collaboration, and adaptation from stakeholders to ensure the market's resilience and sustainability. In this dynamic landscape, the global credit card transaction market remains integral to the functioning of the global financial system, driving economic activity, fostering financial inclusion, and shaping the future of commerce worldwide. With the rise of globalisation, more people are travelling internationally for business and leisure. Credit cards are widely accepted worldwide, making them a convenient payment option for travelers. The ability to use credit cards for purchases in different currencies and locations drives demand for credit card transactions among travellers.

According to the research report, “Global Credit Card Transactions Market Overview, 2029” published by Bonafide Research, the market is anticipated to cross USD 20 Trillion by 2029, increasing from USD 16.06 Trillion in 2023. The market is expected to grow with 6.46% CAGR by 2024-29. Credit cards offer consumers a convenient and versatile payment method, allowing them to make purchases quickly and securely, both in-person and online. The ease of use and acceptance of credit cards by a wide range of merchants worldwide drive consumer preference for this payment method. Credit cards provide consumers with access to a line of credit, allowing them to make purchases even when they don't have immediate funds available. This financial flexibility enables consumers to manage their cash flow more effectively and make larger purchases over time. The rise of e-commerce has changed how people shop, with an increasing number of individuals choosing to buy products online. Because of their ease, security features, and general acceptance by online retailers, credit cards are the recommended payment option for online transactions. Efforts to promote financial inclusion and expand access to banking services have led to an increase in credit card penetration, particularly in emerging markets. As more people gain access to credit cards and formal banking services, the demand for credit card transactions continues to grow globally. The increasing adoption of digital payment solutions and mobile wallets has further fueled the demand for credit card transactions. Mobile apps and digital wallets linked to credit cards offer consumers a seamless and contactless payment experience, driving transaction volumes in the global credit card market. Credit card transaction data is an essential economic metric that offers insights into retail sales trends, consumer spending habits, and general economic activity. Credit card transaction volumes and patterns are often tracked by analysts and decision-makers to evaluate the state of the economy and guide policy choices.

Market Drivers

• Consumer Spending: Global consumer spending patterns are a major factor in the demand for credit card transactions. Consumer spending on products and services often rises as economies expand and incomes rise. Credit cards provide customers with an easy and adaptable way to pay, enabling them to make purchases even with limited finances. Additionally, credit cards provide users access to credit facilities, allowing them to spread out payments over time and make bigger purchases. The demand for credit card transactions rises in tandem with rising discretionary spending and consumer confidence, propelling transaction volumes in the worldwide credit card industry.

• Expansion of E-commerce: Another important factor driving the global credit card transaction industry ahead is the expansion of e-commerce. The emergence of digital markets, mobile commerce, and online shopping platforms has revolutionised the way customers make purchases and carry out transactions. Since credit cards provide a safe and easy way to make payments online, they are the method of choice for customers all over the world. The ease of shopping from home and the widespread acceptance of credit cards by online retailers have propelled e-commerce expansion and, in turn, increased demand for credit card transactions.

Market Challenges

• Global Economic Uncertainty: Unpredictable occurrences like pandemics and financial crises, together with geopolitical tensions and economic instability, can all contribute to uncertainty in the global economy and affect consumer confidence and spending patterns. Consumers may become more frugal with their purchases during uncertain economic times, which would lower the number of credit card transactions in the market. Furthermore, economic downturns may raise a person's risk of losing their job, having their income reduced, and experiencing financial difficulty, which can make it difficult for them to manage their current credit card debt or apply for new credit. In addition, companies could experience dwindling sales, supply chain interruptions, and liquidity problems that affect their capacity to take credit card payments and fulfil their current payment commitments.

• High Interchange Fees: Payment networks charge interchange fees to process credit card transactions, and these costs are quite expensive for merchants, especially small companies and stores with narrow profit margins. Excessive interchange fees have the potential to reduce retailers' profitability and competitiveness, forcing them to increase their pricing or tack on surcharges to customers. High interchange costs may also discourage businesses from taking credit cards entirely, which would reduce customer choice and the number of transactions made in the credit card industry as a whole. Moreover, credit card issuers and payment networks may need to modify their pricing and business models in response to governmental initiatives aimed at promoting competition in the payment processing sector or capping interchange fees.

Based on the report, the card types are segmented into general purpose, specialty, and other credit cards. In terms of the report, providers names are segmented into Visa, MasterCard, and Others.

General-purpose credit cards contribute the highest market share because they are generally accepted by retailers everywhere. Customers may easily use them as a form of payment no matter where they are or what kind of transaction they are making. Major payment networks like Visa, Mastercard, American Express, and Discover, which have built vast networks of retailers and financial institutions worldwide, are usually the ones issuing these cards. The widespread use of general-purpose credit cards increases customer utility and boosts credit card market transaction volume. General-purpose credit cards are well-suited for international travel and cross-border transactions, as they can be used to make purchases in different currencies and locations. Travellers rely on general-purpose credit cards for booking flights, hotels, rental cars, and other travel-related expenses, leveraging the convenience, security, and rewards offered by these cards. Additionally, general-purpose credit cards facilitate cross-border commerce and trade by providing a seamless payment experience for businesses and consumers engaged in international transactions. Furthermore, MasterCard significantly contributes to the market. Through the creation of a vast global acceptance network, Mastercard has made it possible for its customers to use their credit cards at millions of shops and ATMs around the globe. Due to its broad acceptability, Mastercard is the card of choice for customers who are travelling abroad and doing cross-border business, which increases the number of transactions in the credit card industry. Mastercard continually invests in innovative payment solutions and technologies to enhance the payment experience for consumers and merchants. The company has introduced advancements such as contactless payments, tokenization, biometric authentication, and digital wallets, providing secure, convenient, and seamless payment options for users. These innovations contribute to the growth of the credit card transaction market by driving the adoption and usage of Mastercard-branded credit cards.

According to the report, the applications are bifurcated into Food & Groceries, Health & Pharmacy, Consumer Electronics, and Other Applications.

Consumer electronics is a growing market; the demand for smartphones, laptops, tablets, smartwatches, and other electronic gadgets is driving the fast rise of the consumer electronics sector. Consumers want to constantly upgrade their gadgets as new goods are released and technology progresses, which fuels a steady stream of purchases in the consumer electronics industry. Consumer electronics typically have higher price points compared to other retail categories, resulting in larger transaction values. Credit cards provide consumers with the financial flexibility to make these significant purchases by allowing them to spread payments over time through installment plans or by utilising credit limits. This accessibility to credit encourages consumers to use credit cards for purchasing consumer electronics. Customers easily use their credit cards to make purchases through digital platforms thanks to the connectivity that many consumer electronics merchants and online businesses offer with mobile wallets and digital payment solutions. The use and uptake of credit cards in the consumer electronics industry is stimulated by the integration of credit cards with digital payment systems, which improves the whole shopping experience for customers. Consumer preferences are shifting towards technology-driven lifestyles, with a growing emphasis on connectivity, convenience, and innovation. As consumers embrace new technologies and gadgets, they increasingly rely on credit cards to finance their purchases and take advantage of the benefits offered by credit card rewards programmes and promotional offers in the consumer electronics sector.

Based on the report, the five regions covered in the report include North America, Europe, South America, Asia Pacific, the Middle East, and Africa.

Asia Pacific is a growing market; the Asia-Pacific region is home to some of the world's fastest-growing economies, including China, India, and Southeast Asian countries. Rapid economic growth has led to rising incomes, expanding middle-class populations, and increased consumer spending. As disposable incomes increase, more consumers in the region have access to credit cards and are willing to use them for purchases, driving transaction volumes in the credit card market. Throughout the Asia-Pacific region, urbanisation and technology are changing consumer lives and purchasing habits. Urban areas are centres of economic activity because more and more people are purchasing on e-commerce platforms and using digital technology. Credit cards are becoming more and more common among the region's metropolitan customers since they provide a practical and safe payment option for both online and offline transactions. The Asia-Pacific region has witnessed explosive growth in e-commerce, driven by factors such as increasing internet penetration, smartphone adoption, and the proliferation of online marketplaces. Consumers are turning to online shopping for convenience, variety, and competitive pricing, and credit cards are the preferred payment method for online transactions. The growth of e-commerce has significantly contributed to the expansion of the credit card transaction market in the region.


Recent Developments

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Credit Card Transactions market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Card Type
• General Purpose
• Specialty & Other Credit Cards

By Provider
• Visa
• Master-card
• Others

By Application
• Food & Groceries
• Health & Pharmacy
• Consumer Electronics
• Other Application

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Credit Card Transactions industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.
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