Summary
- • The global credit card processing market is projected to reach $2.2 trillion by 2027.
- • Credit card transaction volume in the US reached $8.71 trillion in 2020.
- • The total number of credit cards in circulation worldwide is estimated to be around 2.8 billion.
- • Online credit card transactions are expected to account for 17.6% of total e-commerce sales in 2021.
- • The average credit card processing fee for merchants ranges from 1.5% to 3% per transaction.
- • Mobile credit card transactions are forecasted to reach $3.1 trillion by 2022.
- • Visa and Mastercard collectively account for over 80% of the global credit card market.
- • The average credit card debt per household in the U.S. is $5,315.
- • Around 42% of Americans have unpaid credit card debt.
- • Fraudulent transactions cost the credit card industry an estimated $27.85 billion in 2018.
- • Chargebacks accounted for $31 billion in losses for merchants in 2020.
- • Credit card processing volume in Europe amounted to €2.9 trillion in 2019.
- • Contactless payment usage increased by 150% in the U.S. in 2020.
- • The average transaction value for credit card purchases in the U.S. is $87.
- • Small businesses pay an average of 2.5% in credit card processing fees.
Hold onto your wallets, folks, because the credit card processing industry is reaching astronomical heights! With the global market projected to hit $2.2 trillion by 2027 and the average credit card transaction volume in the U.S. already hitting $8.71 trillion in 2020, its clear that plastic is fantastic. From the staggering number of credit cards in circulation worldwide to the forecasted rise of mobile transactions, its a cashless revolution thats showing no signs of slowing down. But beware the pitfalls, as fraudulent transactions and chargebacks continue to chip away at the industrys billions. So, lets swipe right into the chaotic yet captivating world of credit card processing with some jaw-dropping numbers that are sure to leave you both impressed and slightly nervous.
Average credit card processing fees for merchants
- The average credit card processing fee for merchants ranges from 1.5% to 3% per transaction.
- The average credit card debt per household in the U.S. is $5,315.
- Small businesses pay an average of 2.5% in credit card processing fees.
- The average credit card processing fee for businesses that process over $25,000 per month is 1.6%.
- The average credit card processing fee for small businesses ranges from 2.5% to 3.5% per transaction.
- Credit card processing fees can vary from 1.5% to 5% depending on the type of card used.
- Credit card processing companies spend an average of $3.01 on fraud for every $1 of direct losses.
- The average chargeback rate in the credit card processing industry is approximately 0.2% of all transactions.
Interpretation
In the intricate world of credit card processing, where the numbers dance like sleight-of-hand magicians, one thing remains crystal clear: fees are the silent tricksters of the trade. From the modest 1.5% to the hefty 5%, every swipe comes at a cost. As small businesses navigate the labyrinth of rates and charges, the average household debt in the U.S. quietly ticks away at $5,315 per family, a reminder that convenience often comes with a price tag. In this high-stakes game, where fraud lurks in the shadows, credit card processing companies juggle the delicate balance of security and profit, spending $3.01 on fraud for every $1 of direct losses. As the chargeback rate hovers at a mere 0.2%, it's a world where every penny counts and every transaction tells a story.
Average credit card processing time for transactions is not directly related to any of the given categories
- The average credit card processing time for transactions is 1-2 business days.
Interpretation
In the fast-paced world of credit card processing, where time is indeed money, the average processing time of 1-2 business days serves as the unsung hero balancing the need for speed and security. It's the equivalent of a high-powered business executive who knows when to strike a deal swiftly and when to deliberate with caution. Like a well-oiled machine working behind the scenes, this processing time may not grab headlines, but it's the dependable backbone of the financial world, ensuring transactions are handled with precision and care. After all, in a world where we tap, swipe, and click our way through transactions at lightning speed, a little patience goes a long way in safeguarding our financial transactions.
Credit card transaction volume in the US
- Credit card transaction volume in the US reached $8.71 trillion in 2020.
- Around 42% of Americans have unpaid credit card debt.
- Contactless payment usage increased by 150% in the U.S. in 2020.
- The average transaction value for credit card purchases in the U.S. is $87.
- Around 73% of all transactions in the U.K. are made using credit or debit cards.
- 67% of millennials prefer to use credit cards for purchases over cash.
- Credit card payment volumes in the U.S. are expected to exceed $10 trillion by 2022.
- The use of QR code payments in the U.S. has increased by 40% since 2019.
- In 2020, mobile banking led to a 24% increase in credit card applications.
- American Express had the highest credit card market share in the U.S. in 2020, at 23.05%.
- Around 64% of Americans have used mobile payments in the past year.
- The top three merchant acquirers in the U.S. processed 73% of all credit card purchase transactions in 2020.
- In 2020, Discover Financial Services had a credit card market share of 8.71% in the United States.
- The average approval rate for credit card applications in the U.S. was approximately 20% in 2020.
Interpretation
In a world where plastic reigns supreme, the credit card processing industry is painting a colorful financial landscape. With transaction volumes skyrocketing to trillions and unpaid debts looming over the heads of a significant portion of Americans, it's clear that the plastic revolution is here to stay. Contactless payments are experiencing a Renaissance, with a 150% surge in the U.S. taking the convenience factor to new heights. Millennials are waving goodbye to cash and swiping their way through life with credit cards as their preferred mode of payment. Buckle up, as the U.S. is set to break the $10 trillion mark in credit card volumes by 2022, with QR codes and mobile banking leading the charge. As the saying goes, "charge it to Amex," with the company holding the highest market share in 2020. It's evident that in the dance of digits and data, credit cards are taking center stage, inviting consumers to tap, swipe, and embrace the financial symphony that is shaping our spending habits.
Global credit card processing market size and trends
- The global credit card processing market is projected to reach $2.2 trillion by 2027.
- Mobile credit card transactions are forecasted to reach $3.1 trillion by 2022.
- Visa and Mastercard collectively account for over 80% of the global credit card market.
- Fraudulent transactions cost the credit card industry an estimated $27.85 billion in 2018.
- Chargebacks accounted for $31 billion in losses for merchants in 2020.
- Credit card processing volume in Europe amounted to €2.9 trillion in 2019.
- The global credit card processing market is expected to grow at a CAGR of 12.0% from 2020 to 2027.
- In 2020, the global credit card processing market size was valued at $2.3 trillion.
- The credit card processing industry is projected to have a 9.8% CAGR from 2020 to 2027.
- The Asia Pacific region is expected to witness the highest growth in credit card processing services in the coming years.
- The number of credit card transactions globally is forecast to reach 514 billion by 2023.
- Third-party payment platforms in China processed transactions worth 277.39 trillion yuan in the first half of 2021.
- Contactless payment adoption is expected to reach 70% globally by 2025.
- Credit card fraud losses in the U.S. are estimated to have reached $11 billion in 2020.
- The credit card application approval rate in 2021 was around 21%.
- Business-to-business (B2B) payments through credit cards are projected to reach $20.6 trillion by 2024.
- Around 50% of small businesses in the U.S. do not accept credit card payments.
- Visa accounted for 53.49% of credit card transactions in the Asia Pacific region in 2020.
- Credit card processing software market revenue is projected to reach $1.45 billion by 2027.
- The global credit card processing market size is expected to reach $3.4 trillion by 2027.
- The total value of U.S. credit card transactions is predicted to exceed $9 trillion by 2025.
- Mastercard reported a 53% increase in contactless payments globally in the first quarter of 2021.
- Mobile-based mPOS transactions are expected to account for 40% of global POS transactions by 2025.
- The credit card processing industry in Europe is anticipated to grow at a CAGR of 11.3% from 2021 to 2027.
- The worldwide credit card transaction volume amounted to $34.554 trillion in 2019.
- Small businesses that accept credit cards can see a 20% increase in revenue compared to cash-only businesses.
- Visa accounted for 53% of global credit card transactions in 2020.
- The credit card processing market in Latin America is estimated to reach $46.8 billion by 2026.
- The global credit card processing market is predicted to grow at a CAGR of 9.8% from 2021 to 2028.
- The U.S. credit card processing market size was valued at $640 billion in 2020.
- Business-to-business (B2B) payments through credit cards are expected to surpass $26 trillion by 2024.
- The global market for point-of-sale (POS) terminal systems used for credit card payments is projected to reach $116 billion by 2025.
- The credit card processing industry in Asia Pacific is expected to exhibit a CAGR of 11.2% from 2021 to 2027.
- The global fraud detection and prevention market for credit card transactions is forecasted to be worth $111 billion by 2025.
- Visa accounted for 51.7% of card payment transactions globally in 2020.
- The global market for mobile credit card readers is anticipated to reach $5.94 billion by 2025.
- The U.S. holds the largest market share in the global credit card processing market, accounting for around 40%.
- The adoption of tokenization in credit card processing is estimated to grow at a CAGR of 24.7% over the period 2021-2028.
- Mobile wallet usage accounted for 39% of all proximity mobile payment users globally in 2020.
- Cryptocurrency payments for credit card transactions are expected to reach $1.1 trillion by 2025.
- The global market for credit card processing software is forecasted to grow to $2.61 billion by 2026.
- The market for real-time payments in credit card processing is expected to see a CAGR of 30% from 2021 to 2027.
- The credit card processing industry in Latin America is projected to grow at a CAGR of 13% from 2021 to 2028.
- Around 50% of global credit card transactions were made through contactless payments in 2020.
- The credit card processing market in the Middle East is poised to grow at a CAGR of 7.2% from 2021 to 2027.
Interpretation
In the ever-evolving world of credit card processing, the numbers don't lie: from the staggering $2.2 trillion projection to the mind-boggling $27.85 billion lost to fraud, the industry is a financial rollercoaster. With mobile transactions set to skyrocket to $3.1 trillion by 2022 and a whopping $31 billion lost to chargebacks in 2020, it's clear that while innovation propels us forward, risks lurk around every corner. So as Visa and Mastercard hold dominion over 80% of the market and the global volume climbs at a brisk 12.0% CAGR, it's safe to say that in the high-stakes game of credit card processing, there's always more than meets the eye.
Number of credit cards in circulation worldwide
- The total number of credit cards in circulation worldwide is estimated to be around 2.8 billion.
- By 2022, EMV chip technology is projected to cover 72% of total cards in circulation globally.
- The average U.S. consumer has four credit cards.
Interpretation
As credit cards continue to proliferate like rabbits in a magician's hat, with a staggering 2.8 billion cards swirling around the world like confetti at a never-ending party, it's no wonder that the EMV chip technology is swiftly becoming the latest trend in credit card fashion, expected to cloak 72% of the global card population by 2022. With the average U.S. consumer juggling four credit cards like a seasoned magician, one thing is clear – in the dance of digits and chips, the credit card industry continues to spin a fascinating tale of global financial interconnectedness and consumer convenience.
Online credit card transactions growth projections
- Online credit card transactions are expected to account for 17.6% of total e-commerce sales in 2021.
- Mobile wallets accounted for 28% of all online transactions in 2020.
- Around 90% of all credit card transactions done online are abandoned at checkout.
- In 2021, mobile payments are projected to account for 73% of e-commerce transactions in China.
- In India, credit card transactions grew by 36% in 2021 compared to the previous year.
- The adoption of tokenization technology in credit card processing is projected to grow at a CAGR of 22.5% until 2025.
- The Middle East and Africa region is expected to experience significant growth in mobile credit card processing services by 2027.
- The total value of global e-commerce transactions paid by credit card is estimated to reach $5.3 trillion by 2023.
- The adoption of real-time payments in credit card processing is expected to increase by 23% annually through 2024.
Interpretation
The world of credit card processing is a fascinating rollercoaster of statistics and trends, where online transactions are king and mobile wallets reign supreme. As we navigate through the labyrinth of abandoned checkouts and exploding growth rates in countries like China and India, one thing is clear - the future is in the palm of our hands (literally). Tokenization is the name of the game, as we spin towards a future where real-time payments and global e-commerce transactions dance a multi-trillion dollar tango. So buckle up, fellow consumers and businesses, because the ride is just getting started in this wild world of credit card processing!
