Cards and Payments Market Growth, Share, and Size | 2031
The cards and payments market is anticipated to expand at a CAGR of 9.1% from 2023 to 2031.The growing e-commerce industry will drive the cards and payments market growth. The market includes growth prospects owing to the current cards and payments market trends and their foreseeable impact during the forecast period.
Cards and Payments Market Analysis
The cards and payments market has experienced significant growth and transformation over the years, driven by technological advancements, changing consumer preferences, and regulatory developments. This growth is evident across various segments of the industry, including credit cards, debit cards, mobile payments, and emerging payment technologies. One of the primary drivers of growth in the cards and payments market is technological innovation. The advent of digital payment solutions, such as mobile wallets, contactless payments, and peer-to-peer payment platforms, has revolutionized the way consumers transact. These technologies offer convenience, security, and speed, attracting a growing number of users worldwide.
Cards and Payments Industry Overview
- As societies become more digitized and interconnected, there has been a noticeable shift towards cashless transactions. Consumers increasingly prefer the convenience and security offered by cards and digital payment methods over traditional cash payments. This trend has been further accelerated by the COVID-19 pandemic, which emphasized the importance of contactless payments and online shopping.
- The globalization of businesses and the rise of international travel have fueled the demand for cross-border payment solutions. Consumers and businesses alike seek efficient and cost-effective ways to send and receive money across borders, driving innovation in cross-border payment platforms and foreign exchange services. This trend is expected to continue as international trade and commerce expand.
- The cards and payments market has experienced steady growth in recent years; this growth reflects the increasing recognition of the importance of financial inclusion and the positive impact that cards and payments can have on individuals and enterprises.
Strategic Insights
Cards and Payments Market Drivers and Opportunities
Growing E-commerce Industry will Drive the Cards and Payment Market.
- The growth in the e-commerce industry is anticipated to fuel the cards and payments market in the coming years. E-commerce implies the selling and buying of goods and services over the Internet. Cards and payments are the backbone of e-commerce, providing the necessary infrastructure for businesses to conduct transactions online. For instance, in August 2023, according to the United States Census Bureau, the estimate of U.S. retail e-commerce sales for the fourth quarter of 2023, adjusted for seasonal variation but not for price changes, was US$285.2 billion, an increase of 0.8% from the third quarter of 2023. Total retail sales for the fourth quarter of 2023 were estimated at US$1,831.4 billion, an increase of 0.4% from the third quarter of 2023. Therefore, the rise in the e-commerce industry is driving the cards and payments market.
Cards and Payments Market Report Segmentation Analysis
- Based on type, the cards and payments market is segmented into credit cards, debit cards, and prepaid cards.
- The debit card segment is expected to hold a substantial card and payments market share in 2023. Debit Cards can handle cash. They double up as ATM cards and allow you to withdraw money from an ATM. Therefore, working as an emergency fund. In addition to ATM use, a majority of stores offer cash-back options at checkout. Thus, considering the number of advantages will fuel the cards and payments market growth.
Cards and Payments Market Share Analysis by Geography
The scope of the cards and payments market report is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. Asia Pacific (APAC) is experiencing rapid growth and is anticipated to hold a significant card and payment market share. The region's significant economic development, growing population, and increasing focus on financial inclusion across diverse economies have contributed to this growth. APAC's emerging markets, characterized by a large unbanked population and a growing entrepreneurial culture, have presented substantial opportunities for cards and payments institutions and non-banking financial institutions (NBFCs) to expand their services and reach previously underserved communities.
Cards and Payments Market Report Scope
The "Cards and Payments Market Analysis" was carried out based on type, mode of payment, and geography. In terms of type, the market is segmented into credit cards, debit cards, and prepaid cards. Based on the mode of payment, the cards and payments market is segmented into online and offline. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
Cards and Payments Market News and Recent Developments
Companies adopt inorganic and organic strategies such as mergers and acquisitions in the cards and payment market. A few recent key market developments are listed below:
- In February 2024, The Reserve Bank of India (RBI) issued orders restraining commercial transactions routed through intermediaries by a card network. The central bank, without naming the card network, announced the intermediary, with an arrangement with the network, did not have the authorization to function under the Payment and Settlement Systems (PSS) Act.
[Source: RBI, company website]
- In October 2023, NerdWallet, Inc., one of the platforms that provides financial guidance to consumers and small and mid-sized businesses (SMBs), announced the launch of its first financial product for consumers—NerdUp by NerdWallet—a secured credit card designed to help users build and improve their credit responsibly.
- [Source: NerdWallet, Inc., company website]
Cards and Payments Market Report Coverage & Deliverables
The cards and payments market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. The market report on “Cards and Payments Market Size and Forecast (2021–2031)”, provides a detailed analysis of the market covering below areas-
- Market size & forecast at global, regional, and country- level for all the key market segments covered under the scope.
- Market dynamics such as drivers, restraints, and key opportunities.
- Key future trends.
- Detailed PEST & SWOT analysis
- Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
- Industry landscape and competition analysis covering market concentration, heat map analysis, key players, recent developments.
- Detailed company profiles.
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Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
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to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
Frequently Asked Questions
The advent of IoT big data is positively impacting the cards and payments which is anticipated to play a significant role in the global cards and payments market in the coming years.
The key players holding majority shares in the global cards and payments market are Lloyds Bank plc; NatWest Group; Barclays Bank; The Hong Kong and Shanghai Banking Corporation Limited; and Santander UK plc.
The growing e-commerce industry is the major factors that propel the global cards and payments market.
The global cards and payments market is expected to grow at a CAGR of 9.1 % during the forecast period 2024 - 2031.
- Lloyds Bank plc
- NatWest Group
- Barclays Bank
- The Hongkong and Shanghai Banking Corporation Limited
- Santander UK plc
- Nationwide Building Society
- Banco de Sabadell, S.A.
- Capital One
- Vanquis Bank
- American Express Banking Corp.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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