Dublin, March 28, 2023 (GLOBE NEWSWIRE) -- The "Credit Card Issuance Services Market by Type, Issuers, End-user: Global Opportunity Analysis and Industry Forecast, 2021-2031" report has been added to ResearchAndMarkets.com's offering.
"Credit Card Issuance Services Market," was valued at $443.67 billion in 2021, and is estimated to reach $952.2 billion by 2031, growing at a CAGR of 8.2% from 2022 to 2031.
Credit card issuance services market consists of sales of credit card services by entities (organizations, sole traders, and partnerships) that are engaged in storing, processing, and transmitting payment card data. Credit cards are payment cards issued by banks and financial institutions that can be used to borrow funds.
Moreover, credit card issuer issues a credit card to a customer at the time or after an account has been approved by the credit provider, which need not be the same entity as the card issuer. Then cardholders can use the card to make purchases.
Credit card issuance services demand continues to rise in emerging countries as developing countries with large working populations, such as India, Hong Kong, and others, drive the growth of the credit card issuance services sector.
Additionally, during COVID, some countries worked to increase the adoption of digital payments for their end consumers in order to reduce the transmission of the corona virus, which increases market growth. In addition, many companies offer beneficial points, rewards, and cashbacks to their customers for increasing their market share in the developing nations, which propels the growth of the credit card issuance services market.
Moreover, rise in contactless and digital credit card services benefit the market. Also, transaction charges are the same so there's no cost benefit, but it helps to make it faster, bringing a better consumer experience for the customers which drives the market. Furthermore, increase in the demand for credit cards as it is easy to carry and is also a good alternative for cash boost the credit card issuance services market. Therefore, such factor propel the growth of credit card issuance services market.
But however, rise in credit card frauds across the globe has increased. Also, because of the increase in Phishing emails, messages, and phone calls, has provided more difficulties to detect the fraud and thus, limiting industry growth. Further, the higher interest rate on credit card is one of the retrain of credit card issuance services market. Therefore, such factor is hampering the growth of the credit card issuance services market.
The market also offers growth opportunities to the key players in the market. The technological innovation in product offering of credit card issuance service has experienced a drastic change over decades, owing to the emergence of disruptive technologies. Moreover, increase in number of such technological developments across the globe provides lucrative opportunity for the market.
Also, now-a-days card issuers are investing in NFC technology, which allows credit card firms to offer contactless payment with a single tap. Thus, such new technology and innovations provide lucrative opportunity for the credit card issuance services market.
The key players profiled in the study are American Express Company, Entrust Corporation., Fis, Fiserv, Inc., Giesecke+Devrient GmbH, GPUK LLP., Marqeta, Inc., Nium Pte. Ltd., Stripe, Inc., and Thales.
The players in the market have been actively engaged in the adoption various strategies such as Collaboration, product launch, and partnership to remain competitive and gain advantage over the competitors in the market.
For instance, In August 2022, WebBank had done an agreement with American Express to become a card issuer and participant in the American Express network. This collaboration allows WebBank to issue credit card and payment solutions that include American Express benefits. Thus, American Express Company selected WebBank as one of its key issuing banks focused on the fintech industry.
Therefore, with the help of this collaboration the companies delivered more personal approach to credit card issuance service that build customer and bank relationship which provided a strategic advantage to the company and credit card issuance services market size.
Key Market Insights
- By type, the consumer credit cards segment was the highest revenue contributor to the market, and is estimated to reach $726.3 billion by 2031, with a CAGR of 7.2 %. However, the business credit cards segment is estimated to be the fastest growing segment with the CAGR of 12.6% during the forecast period.
- By issuers, the bank segment dominated the global market, and is estimated to reach $529.79 billion by 2031, with a CAGR of 6.6%. However, the NBFCs segment is expected to be the fastest growing segment with the CAGR of 12.2% during the forecast period.
- Based on end user, the personal segment was the highest revenue contributor to the market, with $368.46 billion in 2021, and is estimated to reach $717.39 billion by 2031, with a CAGR of 7.2%.
- Based on region, North America was the highest revenue contributor, accounting for $167.00 billion in 2021, and is estimated to reach $299.46 billion by 2031, with a CAGR of 6.3%.
Market Dynamics
Drivers
- Credit card demand continues to rise in emerging countries
- Rise in contactless and digital credit card services
- Increased demand for cash alternatives and availability low cost credit cards
Restraints
- Rise in credit card frauds across the globe
- Higher interest rates on credit cards
Opportunities
- Technological innovation in product offering
Key Market Players
- Fiserv, Inc.
- Marqeta, Inc.
- Stripe, Inc.
- Giesecke+Devrient GmbH
- Entrust Corporation.
- GPUK LLP.
- Nium Pte. Ltd.
- fis
- Thales
- American Express Company
Key Market Segments
By Type
- Consumer Credit Cards
- Business Credit Cards
By Issuers
- Banks
- Credit Unions
- NBFCs
By End User
- Personal
- Business
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
For more information about this report visit https://www.researchandmarkets.com/r/clxr7u
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