Rise in Demand for Credit Cards in Developing Nations due to Increased Consumer Spending to Drive Market Growth
A credit card has changed the way people shop by helping them have an effortless credit on tap. Credit card can be used to withdraw money or shop at merchandise without having money in your pocket. Almost all banks and financial institutions offering various types of credit cards. They are accepted as a means of payment at any place that offers you goods or service. The uses of credit cards are extended to buying groceries, clothing, and accessories, booking a movie ticket, shopping online, buying home appliances, paying your utility and mobile bills, and many more. One of the major forces influencing the market is the increased need for non-cash alternatives to cash for the down payments and emergency funding. There is a rise in the use of credit cards to pay for TVs, laptops, cell phones, vacation packages, and jewellery. This is encouraging the market expansion of credit card payments, together with the accessibility of affordable credit cards globally. Credit card payment market is also benefiting from technical developments in blockchain that will increase database security.
Developments in the acceptance of virtual payment methods among the working population in developing countries like Hong Kong, India, and others support the expansion of the credit card payment market. A number of countries are concentrating on raising the use of virtual payments for end-users in an effort to reduce the spread of COVID-19, which is accelerating the expansion of the credit card payment market. In India, 42 percent of people have increased their use of digital payment methods, which mostly include contactless credit cards, online payments, and others, which support the expansion of credit card payment market.
Another factor that is propelling the growth of the market in the emerging nation is the incentives provided by various retail shops and e-commerce websites for credit card payments. When a company accepts credit card payments, its potential customer base greatly increases as more clients are drawn in, almost certainly increasing revenue. Amazon, a leading e-commerce website offers a 5 to 10 percent discount on credit card payments. Such initiatives from various leading business enterprises will motivate small vendors for the same thus driving the growth of credit card payment market.
Increasing Use of Credit Card for Consumer Electronics to Elevate Growth Outlook of Credit Card Payment Market
Credit card payment is always the preferred method for purchasing consumer electronics, due to the increased price of electronics, ease of payment, less cash handling, and various credit card-only discounts. Consumer electronics will flourish as long as market participants continue to invest in R&D to create new products with improved features. With the advent of new technologies, the market is one of the sectors with the quickest growth rates. In order to meet customer wants, technology is advancing quickly, which will open up new business prospects. Consumer preferences for generic single-purpose electronic products were radically altered by the availability of gadgets that encouraged the automation of daily tasks to multi-functional smart devices. As a result of the spike in demand for various wearable, smart home, and other consumer electronic products, the manufacturing industries for consumer electronics prospered.
Greater Dependence of Americans on Credit Cards Continues to Position North America at the Top
North America dominated the credit card payment market in 2020 and the trend will continue throughout the forecast period. This is attributable to a number of causes, including the region's economy's quick adoption of credit cards. With the high dependence on credit cards among Americans nearly 47% of American adults, or around 120 million people’s credit card debt will contribute toward the rise of credit card payment market. Credit cards are widely used throughout the region in the food, grocery, healthcare, hotel, electronics, media and entertainment, travel, and tourist industries. To provide clients with improved digital post-paid card services, the key companies in the region are heavily spending on R&D activities, which is anticipated to support market growth.
During the forecast period, Asia Pacific is anticipated to experience the quickest rate. This is due to an increase in credit card reward points offered by businesses and loyalty programs to boost their market share and a rising tendency among young people in industrialised countries about credit cards. To provide clients with improved seamless credit card services, leading players in the region are heavily spending on R&D activities, which is anticipated to support the growth of credit card payment market in the region. Paytm, a global supplier of online payment services, stated in October 2020 that it would introduce credit cards to make it simpler for new users to enter the credit market. A unique feature of the new credit card will provide consumers complete control over the card usage and the ability to oversee their transactions. Increase in these innovations is thus creating favourable opportunities for the development of the credit card payment market in the region.
Global Credit Card Payment Market: Competitive Landscape
Some of the participants in global credit card payment market are launching new products and establishing partnerships, alliances, and collaborations. In September 2021, M2P Fintech start-up recently revealed that it had acquired credit card sourcing start-up Wizi. M2P wants to strengthen its platform's plug-and-play functionality with the acquisition. In March 2021, Mastercard has completed its purchase of Nets' account-to-account payment business. This purchase strengthens our current multi-rail offers by bringing elite talent and cutting-edge technology, allowing for greater access, choice, and flexibility in how customers choose to pay for and get paid.
A few of the players in the credit card payment market include American Express, Bank of America Corporation, Barclays PLC, Capital One, Citigroup Inc., JPMorgan Chase & Co, MasterCard, Synchrony, The PNC Financial Services Group, Inc., and USAA.
Global Credit Card Payment Market is Segmented as Below:
By Card Type
Key Elements Included In The Study: Global Credit Card Payment Market
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