United States of America (USA) Cards and Payments - Opportunities and Risks to 2026

United States of America (USA) Cards and Payments - Opportunities and Risks to 2026

Summary

GlobalData’s ‘United States of America (USA) Cards and Payments - Opportunities and Risks to 2026' 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, credit transfers, cheques and mobile wallets during the review-period (2018-22e).

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 (2022e-26f). It also offers information on the country's competitive landscape, including market shares of issuers and schemes.

The report brings together GlobalData’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.

The 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 cards.
• Detailed insights into payment instruments including cards, cash, direct debits, credit transfers, cheques and mobile wallets. It also, includes an overview of the country's key alternative payment instruments.
• Ecommerce 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.
• Comprehensive analysis of consumer attitudes and buying preferences for cards.
• The competitive landscape of the US cards and payments industry.

Scope

• 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. To overcome such shortcomings, on August 5, 2019, the Federal Reserve Board announced that the country’s federal reserve banks are developing a new instant payment system called FedNow. This system will have a wider presence than the existing options and will allow banks of every size to provide instant payment services to their customers. The new payment system will operate 24 hours a day, seven days a week, 365 days a year, with a maximum transaction limit of $25,000. The service is expected to go live in 2023.
• Mastercard is phasing out the use of magnetic stripes on its credit and debit cards over the next decade, as the industry moves towards more secure and convenient alternatives such as chips and contactless payments. The transition will start in 2024, when the stripe will no longer be required on new cards in Europe (where chip cards are already widely used). In the US, the adoption of chip payments has been slower, meaning the transition will start in 2027. From 2029, no new Mastercard debit or credit cards will include a magnetic stripe, which will be completely phased out by 2033.
• Rising inflation is proving a deterrent to economic growth. In response, the Federal Reserve is gradually increasing its benchmark interest rate. In March 2022, the rate was revised from 0.25% to 0.50%, before soaring to 3-3.25% on September 22, 2022. Until inflation returns to a more manageable range, the Fed is expected to continue increasing interest rates. Such moves will directly impact the credit card market, leading to reduced spending via credit cards. In line with the rising benchmark interest rate, credit card APRs are also increasing. According to the Federal Reserve, the average APR on credit cards rose from 14.22% in 2018 to 15.13% as of May 2022.

Reasons to Buy

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

• 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.