The Latest Global Credit Industry Statistics Explained
The global credit card market reached a value of nearly USD 1,975.4 billion in 2020.
The statistic indicates that the total value of transactions made using credit cards worldwide in 2020 was nearly USD 1,975.4 billion. This figure represents the sheer size and importance of the global credit card market, highlighting its significant role in facilitating financial transactions on a global scale. The increase in the value of the market reflects the continued growth and adoption of credit cards as a preferred method of payment for consumers and businesses alike. This statistic underscores the widespread use and impact of credit cards as a key driver of economic activity and consumer spending across different countries and industries.
The credit card market is expected to grow at a CAGR of 5.3% from 2021 to 2023.
The statistic implies that the credit card market is projected to expand steadily at a Compound Annual Growth Rate (CAGR) of 5.3% over the period from 2021 to 2023. This means that the total value of the credit card market is expected to increase by an average of 5.3% each year during this time frame. A rising CAGR indicates that the credit card industry is likely to experience growth in terms of market size, usage, and potentially profitability. Factors driving this growth might include increased consumer spending, advancements in financial technology, and evolving consumer preferences towards cashless transactions. The CAGR figure serves as a useful metric to forecast the overall growth trajectory of the credit card market over the specified period.
Contactless cards claim 51% of all cards globally (in circulation) as of 2019.
The statistic that contactless cards claim 51% of all cards globally as of 2019 means that approximately half of the total number of cards in circulation around the world are equipped with contactless technology. This data suggests a significant adoption of contactless payments compared to traditional cards that require swiping or inserting into a card reader. Contactless cards allow for quick and convenient transactions by simply tapping the card on a contactless-enabled payment terminal, reducing the need for physical contact and enhancing the overall payment experience for consumers. The increasing prevalence of contactless cards reflects the ongoing shift towards more efficient and secure payment methods in the digital age.
Digital credit card transactions are projected to reach USD 10.5 trillion annually by 2025.
The statistic indicates that the total value of digital credit card transactions is expected to amount to USD 10.5 trillion on an annual basis by the year 2025. This projection suggests a significant increase in the use of digital payment methods, particularly credit cards, as a preferred mode of payment for consumers globally. The growth in digital credit card transactions can be attributed to various factors, including the increasing adoption of online shopping, the convenience and security offered by digital payment systems, and the shift towards a cashless economy. This statistic highlights the rapid evolution of the financial technology sector and the ongoing digital transformation in the way people make payments and conduct financial transactions.
Globally, the average consumer has 2.42 credit cards.
The statistic that globally, the average consumer has 2.42 credit cards indicates that, on average, individuals across the world possess slightly more than two credit cards for financial transactions and purchases. This metric suggests that credit cards are a prevalent financial tool used by consumers worldwide, reflecting the widespread availability and usage of credit in modern economies. The figure of 2.42 credit cards per consumer signifies a substantial reliance on credit as a means of payment, potentially pointing to varying consumer preferences, financial habits, and access to credit facilities across different regions and demographics.
By 2026, the total global credit card transactions are expected to reach 1.31 trillion.
The statistic, “By 2026, the total global credit card transactions are expected to reach 1.31 trillion,” indicates a significant growth trend in the use of credit cards for transactions worldwide. This projection suggests that electronic payments and digital transactions will continue to play an increasingly important role in the global economy over the next few years. The estimated total of 1.31 trillion credit card transactions reflects a high volume of financial transactions conducted through credit cards, illustrating a shift towards cashless payment methods. This data is essential for businesses, financial institutions, and policymakers to understand and adapt to the evolving landscape of global payment systems.
The value of commercial card transactions globally reached $31.6 trillion in 2020, representing a 7.8% increase from the previous year.
The statistic highlights that the total value of commercial card transactions conducted worldwide was $31.6 trillion in 2020, which signifies a notable 7.8% rise compared to the previous year. This increase indicates a growing trend in the use of commercial cards for transactions on a global scale. The rise suggests that businesses and consumers are increasingly opting for the convenience and efficiency offered by commercial cards, potentially driven by factors such as digitalization, globalization, and the need for secure and streamlined payment methods. This statistic underscores the significant role that commercial card transactions play in various sectors of the economy and reflects the ongoing transition towards cashless transactions in the commercial sphere.
Global non-cash transactions surged nearly 14% from 2018 to 2019 to reach 708.5 billion transactions, the highest growth rate recorded in the past decade.
The statistic indicates a significant increase in global non-cash transactions between 2018 and 2019, with a nearly 14% surge to reach a total of 708.5 billion transactions. This growth rate is reported to be the highest recorded in the past decade, suggesting a notable shift towards cashless transactions worldwide. The increase in non-cash transactions signifies a growing reliance on digital payment methods such as mobile payments, online transfers, and card payments, reflecting the evolving preferences and technological advancements in the financial sector. This trend highlights the increasing adoption of digital financial services and the potential for further developments in the future.
North America accounted for nearly 50% of the global credit card market in 2019.
The statistic “North America accounted for nearly 50% of the global credit card market in 2019” indicates that the North American region had significant dominance in the credit card industry compared to other regions worldwide during the specified year. This implies that a substantial portion of total credit card transactions and usage, including credit card issuance, usage, and financial activity, was concentrated in North America. The statistic highlights the region’s strong presence and influence in the global credit card market, suggesting that North America played a pivotal role in shaping the dynamics and trends of the credit card industry on a global scale in 2019.
Online credit card transactions are expected to grow by 16% CAGR between 2021 and 2028.
This statistic indicates that the volume of online credit card transactions is projected to increase at a Compound Annual Growth Rate (CAGR) of 16% between the years 2021 and 2028. This suggests a significant upward trajectory in the use of credit cards for online purchases over this period. Factors such as the increasing popularity of e-commerce, advancements in technology and security measures, shifting consumer preferences towards online shopping, and the convenience of cashless transactions are likely driving this growth. Businesses in the online retail sector may need to adapt to this trend by optimizing their online payment systems and ensuring a seamless and secure shopping experience for their customers to capitalize on the increasing demand for online credit card transactions.
2.8 billion payment cards were issued in 2020 with 5.6 million contact and contactless card payment terminals available in commercial establishments.
In 2020, there were 2.8 billion payment cards issued worldwide, indicating the widespread adoption and use of electronic payment methods. These payment cards include credit cards, debit cards, and other forms of digital payment, highlighting the shift towards cashless transactions. To accommodate this huge number of payment cards, there were 5.6 million contact and contactless card payment terminals available in commercial establishments, emphasizing the infrastructure in place to enable card transactions. The large number of terminals reflects the increasing demand for convenient and secure payment options, positioning card payments as a primary method for consumer transactions globally.
The value of global card purchase transactions increased by 8.6% in 2020 to reach $31.96 trillion.
The statistic provided indicates that the total value of card purchase transactions conducted worldwide saw a notable 8.6% increase in 2020, reaching a substantial sum of $31.96 trillion. This significant growth in transaction value reflects the ever-increasing reliance on electronic payment methods globally, driven by factors such as the shift towards digital payment solutions, the rise of e-commerce, and the ongoing technological advancements in financial services. The surge in card transactions could also be attributed to the impact of the COVID-19 pandemic, which accelerated the adoption of cashless transactions due to concerns over physical contact and the need for social distancing. Overall, the statistic highlights the continued evolution and expansion of the global payment landscape towards a more digital and convenient future.
Visa holds a roughly 52% market share of the global digital payment industry.
The statistic stating that Visa holds a roughly 52% market share of the global digital payment industry indicates that Visa is the dominant player in the digital payment space, capturing more than half of the market. This demonstrates Visa’s significant presence and influence in facilitating digital transactions worldwide. The high market share suggests that Visa’s payment solutions are widely accepted and preferred by consumers, merchants, and financial institutions. With such a sizable market share, Visa has a strong competitive advantage over other players in the industry and is positioned as a key player in shaping the evolution of digital payment technologies and services.
Mobile wallet transactions are projected to cross $2 trillion in 2020.
The statistic “Mobile wallet transactions are projected to cross $2 trillion in 2020” indicates that the total value of transactions conducted through mobile wallet services is expected to exceed $2 trillion by the end of the year 2020. This suggests a significant and accelerating trend towards the use of mobile wallets as a preferred method of digital payments, reflecting the growing adoption of mobile technology and the convenience it offers for making transactions. The increasing reliance on mobile wallets also indicates a shift in consumer behavior towards cashless payments, highlighting the importance of digital financial services in today’s economy.
Credit card fraud losses were $28.65 billion in 2020 globally.
The statistic implies that $28.65 billion was lost to credit card fraud globally in the year 2020. This significant figure points to the persistent threat of fraudulent activities within the credit card industry, indicating a substantial financial impact on both consumers and financial institutions. The high level of losses underscores the importance of implementing robust security measures and fraud detection systems to mitigate such risks and protect against financial losses. Additionally, this statistic serves as a stark reminder of the ongoing challenge posed by cybercriminals who exploit payment systems for illicit gains, emphasizing the need for continual vigilance and innovation in combating credit card fraud.
Visa and Mastercard together hold the vast majority of the world credit card market share, with Visa at 60.5% and Mastercard at 26.9% as of 2020.
The statistic indicates that Visa and Mastercard, two major players in the credit card industry, collectively dominate the global market share. As of 2020, Visa commands a significant majority at 60.5%, while Mastercard trails behind but still holds a substantial share at 26.9%. This suggests that most credit card transactions worldwide are facilitated through Visa and Mastercard, solidifying their influence over the industry. Their dominance can be attributed to various factors such as widespread acceptance, strong branding, and extensive networks of financial institutions and merchants. This statistic underscores the significant market power and reach of Visa and Mastercard in the credit card ecosystem, highlighting their importance in the global financial landscape.
By 2027, the global mobile credit card processing software market is predicted to reach $310 billion.
The statistic indicates a projection that the global mobile credit card processing software market is expected to experience significant growth, reaching a value of $310 billion by 2027. The prediction suggests a robust expansion in the adoption and use of mobile credit card processing software worldwide over the next few years, driven by factors such as increasing digitalization, the growth of e-commerce, and the convenience of mobile payments. This growth forecast underscores the importance of mobile technology in transforming the way transactions are conducted and highlights the potential for continued innovation and development in the financial technology industry.
China represents the world’s largest credit card market in terms of transaction value, accounting for more than 45% of the total share.
The statistic indicates that China holds the top position globally in terms of credit card market size based on transaction value, surpassing all other countries. With a market share exceeding 45%, China’s credit card industry is significantly larger than that of any other country. This demonstrates the substantial growth and adoption of credit cards among Chinese consumers and businesses, reflecting a robust financial ecosystem and consumer spending habits in the country. The statistic highlights China’s leading role in the global credit card market and its importance in the overall landscape of payment systems and financial transactions internationally.
There was a 0.3% growth in the number of open credit card accounts, which totalled approximately 364 million by the end of the first quarter of 2021.
The statistic indicates that there was a small 0.3% increase in the number of open credit card accounts between the beginning and end of the first quarter of 2021. This growth resulted in a total of roughly 364 million open credit card accounts. While the percentage increase may seem modest, the actual number of accounts is significant and reflects ongoing activity in the credit card market. This statistic suggests that despite economic uncertainties during this period, individuals and businesses continued to utilize credit cards as a means of payment and financial management.
Conclusion
The global credit industry statistics provide valuable insights into the trends and patterns shaping the financial landscape worldwide. By examining these data points, we can better understand the factors influencing borrowing behavior, lending practices, and overall credit health. It is crucial for individuals, businesses, and policymakers to stay informed about these statistics to make sound financial decisions and navigate the complexities of the credit market effectively.
References
0. – https://www.www.mordorintelligence.com
1. – https://www.www.statista.com
2. – https://www.www.prnewswire.com
3. – https://www.www.marketstudyreport.com
4. – https://www.www.experian.com
5. – https://www.www.investopedia.com
6. – https://www.www.creditcards.com
7. – https://www.www.imarcgroup.com
8. – https://www.www.mckinsey.com
9. – https://www.www.bcg.com
10. – https://www.www.finaria.it
11. – https://www.www.globenewswire.com
12. – https://www.worldpaymentsreport.com
13. – https://www.nilsonreport.com
14. – https://www.www.mercatoradvisorygroup.com
