Credit Card Payments Market Size, Share, and Trends 2024 to 2033

Credit Card Payments Market Size and Growth 2024 to 2033   

The global credit card payments market size was USD 572.34 billion in 2023, calculated at USD 622.76 billion in 2024, and is expected to reach around USD 1,331.50 billion by 2033, expanding at a CAGR of 8.81% from 2024 to 2033.

Credit Card Payments Market Key Takeaways

• The North America credit card payments market size reached USD 246.11 billion in 2023 and is expected to expand around USD 579.20 billion by 2033, at a CAGR of 8.93% from 2024 to 2033.
• North America held the dominant share of the credit card payments market in 2023.
• Europe is expected to expand at a rapid pace in the market during the forecast period.
• By card type, the general purpose credit cards segment accounted for the largest share of the market in 2023 and is projected to continue its dominance over the forecast period.
• By card type, the specialty & other credit cards segment is expected to witness considerable growth in the market over the forecast period.
• By application, the food & groceries segment held the largest share of the market in 2023.
• By application, the health & pharmacy segment is expected to grow significantly in the market during the forecast period.
• By provider, the Mastercard segment is estimated to hold the dominating share of the market during the forecast period.
• By provider, the Visa segment is expected to grow notably in the market over the studied period.

U.S. Credit Card Payments Market Size Growth 2024 to 2033

The U.S. credit card payments market size was valued at USD 172.27 billion in 2023 and is predicted to be worth around USD 408.34 billion by 2033, at a CAGR of 9.01% from 2024 to 2033.

North America held the dominant share of the credit card payments market in 2023 and is expected to witness prolific growth during the forecast period. The region is observed to witness prolific growth during the forecast period. The growth of the region is driven by the increasing presence of sophisticated financial services organizations, the economy's rapid growth, the rising acceptance of credit cards, the growing customer preference for digital transactions, and the advancement in technology.

The rapid growth of e-commerce platforms, along with the increasing use of touchless payment options, has resulted in increasing dependency on the credit card payments market in North America. In addition, there is the presence of key prominent players such as Mastercard, Visa, American Express, and Discover Financial Services. Among all of them, MasterCard is used by the majority of the population in the United States, according to secondary sources.

• According to the Federal Reserve, 82% of American adults had a credit card in 2022. Nearly 191 million American adults have at least one credit card account; half of all Americans have at least two cards, and 13% have at least five cards.

According to the Canadian Bankers Association, in 2023, credit cards will be widely preferred by both consumers and retailers as they offer valuable benefits. The majority of Canadians use credit cards as a method of payment rather than borrowing. Nearly two-thirds of consumers, or 65 %, say credit card purchases are beneficial to merchants and directly help them grow their businesses.

Europe is expected to expand at a rapid pace in the credit card payments market during the forecast period. In Europe, the market has witnessed the rapid adoption of credit cards owing to increasing loyalty programs and reward points offered by financial organizations to credit card holders. Thus, this is expected to propel the market growth in the region during the forecast period.

Additionally, the rising popularity of credit cards among young people in countries such as the United Kingdom, France, Italy, Germany, and others is anticipated to fuel the credit card payments market’s growth during the forecast period. Additionally, the rise in retail and e-commerce sales is projected to be due to the significance of credit cards as a preferred method for online transactions in the region.

• According to secondary sources, roughly 33.8 million or 64 percent of adults in the United Kingdom have at least one credit card. There were 362 million credit card transactions in June 2023. Between June 2022 and June 2023, total outstanding credit card balances in the UK increased by £12.1 billion.

Market Overview

Earlier, cash was the most popular method of payment, but gradually, it is declining due to rapid digitalization around the world. Credit card payments have become the preferred choice for payments as a way to promote digital transactions. A credit card is a payment card issued by a bank to an account holder, allowing its cardholder to purchase goods or services or withdraw cash on credit. Credit cards are widely used to make payments around the world. The credit card also facilitates the conversion of purchases into easy EMIs.

A cardholder is liable to repay the used credit limit or minimum due on or before the due date to avoid additional interest. It is one of the flexible modes of payment that offers cardholders more time to pay accrued charges to card issuers. Payment through credit cards helps to enhance the purchasing power of individuals, create a credit score for loans, and offer cashback, zero foreign transaction fees, and others.

Credit Card Payments Market Scope

Credit Card Payments Market Dynamics

Driver

Increasing adoption of credit card

The rapidly rising adoption of credit cards is expected to boost the credit card payments market revenue during the forecast period. In the digital revolution era, the rapid adoption of credit cards is owing to the customer preference for quick, safe, and cashless transactions. Credit cards offer a convenient and flexible way of borrowing money to pay for several products and services, with many relying on credit cards in day-to-day life for things such as paying petrol or bills, shopping, and others.

Credit cards are accepted in more than 200 countries and at millions of locations across the globe. It offers several other benefits, such as access to unsecured credit, interest-free payment from the time of purchase to the end of the billing period, instant receipt of goods and services, and a wide range of discounts and offers. Therefore, the rising use of credit cards to buy goods or services drives the growth of the credit card payments market.

• According to a report by Worldline, Of the total card transactions of ₹12.66 trillion between June and December 2023, credit card transactions rose by 11% to ₹9.30 trillion between June and December 2023 in India. 11% up from 2022.

Restraint

Security concerns and fraudulent activities

The security concerns and fraudulent activities are anticipated to hamper the market's growth. Credit card payments often face severe security issues and fraud risks. Despite the robust advancement in security technology, fraudsters continue to target credit card transactions, which causes data breaches, illegal access to sensitive information of card holders, and other security purposes. In addition, the market has experienced an increasing number of payment scams on e-commerce sites. In many cases, the purchased product is either not received or cannot be tracked by the customer, which is likely to limit the expansion of the global credit card payments market.

• In March 2024, Axis Bank credit card users were impacted by fraudulent overseas transactions. Multiple customers with Axis Bank credit cards have been impacted by fraudulent overseas transactions, according to a senior official. Customers witnessed unauthorized transactions where they received transaction alerts on certain low-value purchases being carried out at some e-commerce sites.

Opportunity

Robust growth of the e-commerce and retail sector

The robust growth of the e-commerce and retail sector is projected to offer lucrative growth opportunities for the credit card payments market in the coming years. The e-commerce and retail sector has encouraged and promoted the use of credit card payments rather than paying cash for shopping for electronics, apparel, accessories, food products, and others.

Several e-commerce companies offer attractive points, rewards, and cashback to their customers to engage them in purchase activities, leading to an increase in credit card payments. With the growth in e-commerce activities and the expanding popularity of credit card transactions, as well as while shopping on e-commerce and retail sector platforms, consumers prefer credit cards for ease, speed, security, and others. Thereby bolstering the credit card payments market growth.

• In March 2024, online credit card spending surged over rupees 1 lakh crore, hitting rupees 1,04,081 crore. This marked a 20 % increase from nearly rupees 86,390 crore in March 2023 and a 10 % rise from rupees 94,774 crore in February 2024. this reflected a growing trend of using cards for smaller purchases. HDFC Bank led the market share at 20.2%, followed by SBI, ICICI Bank, Axis Bank, and Kotak Mahindra Bank.

Card Type Insights

The general purpose credit cards segment accounted for the largest share of the credit card payments market in 2023 and is projected to continue its dominance over the forecast period. The segment’s growth is driven by the increasing offerings of exclusive rewards, points, and other advantageous perks, which resulted in the increasing adoption of premium cards by credit card users. General Purpose Credit Cards enable a consumer to purchase goods and services at a variety of stores and businesses.

The specialty & other credit cards segment is expected to witness considerable growth in the credit card payments market over the forecast period. These credit cards offer higher credit or spending limits provided by the financial institution than others. Specialty credit cards are tailored to align the unique demands of a particular group of consumers, including college students and business professionals. Organizations often offer these cards to their employees to keep track of employee expenses on travel, inventory purchases, and various other responsibilities that require transactions. Thus boosting the growth of the segment.

Application Insights

The food & groceries segment held the largest share of the credit card payments market in 2023. The segment is expected to sustain its position throughout the forecast period owing to the increasing use of credit cards in the food and grocery sector to purchase food and groceries. Credit card payments are gaining significant popularity in the food and grocery sector due to their convenience and contactless nature, which improves customer satisfaction. Customers often prefer swiping or tapping credit cards for smooth and quick transactions at supermarkets and grocery stores. Credit cards offer rewards or cashback incentives for purchases made in supermarkets, grocery stores, and restaurants, which in turn makes them an appealing payment for cash alternatives and assists people in managing their household budgets. Such supportive factors drive the growth of the segment.

The health & pharmacy segment is expected to grow significantly in the credit card payments market during the forecast period. In the health and pharmacy industries, credit cards are widely used as a secure payment process, simplifying billing procedures by eliminating the need for cash handling and improving the overall experience of customers. Credit cards are used for multiple purposes in the health and pharmacy industries, such as prescription drugs, medical services, and other healthcare-related expenses. Credit cards offer various attractive perks, including cashback or rewards for spending on healthcare-related items.

Provider Insights

The Mastercard segment is estimated to hold the dominating share of the credit card payments market during the forecast period. Mastercard is a leading financial services corporation globally. It specializes in payment processing and technology. Mastercard partners with banks and merchants to provide a smooth and safe credit card payment experience across various areas and industries. Mastercard also offers debit, credit, and prepaid card services, making it one of the world’s most extensive payment networks.

The Visa segment is expected to grow notably in the credit card payments market over the studied period. Visa is a global payment technology company that offers credit, prepaid cards, gift cards, and debit card services. Visa cards have a global presence and extensive network and are a versatile and accessible payment option in a wide range of businesses. Visa credit cards are accepted in more than 200 countries and territories globally, making them gain significant popularity both among consumers and companies. Financial institutions and merchants collaborate with Visa to offer various credit card options and efficient payment solutions.

Credit Card Payments Market Companies 

• American Express
• Bank of America
• Barclays
• Capital One
• Chase
• Citibank
• Discover
• HSBC
• ICICI Bank
• JPMorgan
• Mastercard
• MUFG
• Santander
• SBI Cards
• State Farm
• U.S. Bancorp
• Visa
• Wells Fargo
• Westpac
• Worldpay

Recent Developments

• In February 2024, American Express and Delta Air Lines unveiled upgraded Delta SkyMiles American Express Cards, intended to improve the travel experience and provide everyday value to consumers and business owners.
• In March 2024, SBI Card, in partnership with Titan Company Ltd, announced the launch of Titan SBI Card. Titan SBI Card offers features that include cashback, titan gift vouchers, and reward points. The cardholders can avail benefits worth over Rs. 2,00,000 per annum.
• In June 2024, Adani One and ICICI Bank announced the launch of India's first co-branded credit cards with airport-linked benefits in collaboration with Visa. Available in two variants - Adani One ICICI Bank Signature Credit Card and Adani One ICICI Bank Platinum Credit Card - the cards offer a substantial reward program.Companies

Segments Covered in the Report

By Card Type

• General Purpose Credit Cards
• Specialty and Other Credit Cards

By Application

• Food and Groceries
• Health and Pharmacy
• Restaurants and Bars
• Consumer Electronics
• Media and Entertainment
• Travel and Tourism
• Other Applications

By Provider

• Visa
• Mastercard
• Other Providers

By Geography

• North America 
• Europe 
• Asia Pacific 
• Latin America 
• Middle East & Africa