United States (US) Cards and Payments - Opportunities and Risks to 2027

United States (US) Cards and Payments - Opportunities and Risks to 2027

Summary

GlobalData’s ‘US Cards and Payments: Opportunities and Risks to 2027' 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, credit transfer, cash, direct debits, mobile wallets and cheques during the review-period (2019-23e).

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 (2023e-27). 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, credit transfer, cash, direct debits, mobile wallets and cheques. 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

• FedNow is a new instant payment system that is being launched in a phased manner, staring from July 2023. The system operates on a 24/7/365 basis. As of September 2023, there were 57 participating financial institutions. Once the system has been fully rolled out, it will offer P2P, consumer-to-business, consumer-to-government, government-to-consumer, business-to-consumer, business-to-business, business-to-government, and account-to-account payments. The default payment limit is $100,000 per transaction, but financial institutions can raise the limit to $500,000.
• The US credit and charge card market is currently being affected by geopolitical challenges such as the Russia/Ukraine crisis and high inflation. To tame inflation, 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 5.25-5.50% as of September 2023. Until inflation returns to a more manageable range, this strategy is expected to continue. As a result, credit card APRs are also increasing. As per the Federal Reserve, the average APR on credit cards rose from 15.05% in 2019 to 20.68% as of May 2023, highlighting that credit is now more expensive in the country.
• US consumers are increasingly using contactless debit cards, with banks rolling out such cards to meet this demand. According to The 2023 PULSE Debit Issuer Study, the number of debit cards with contactless functionality in the US rose from 56.6% in 2021 to 70.2% in 2022. The study claims that most issuers are working towards 100% migration to contactless debit cards by the end of 2023. Meanwhile, as per Visa data, 34% of face-to-face card payments made using Visa debit and credit cards in the US were contactless as of April 2023 - up from 20% in January 2022. Visa revealed that in New York, San Francisco, Los Angeles, Detroit, Seattle, San Diego, Oakland, and Miami, contactless card payments account for over 40% of card payments.

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.