Statistical Insights into the Credit Card Industry in 2024

Statistical Insights into the Credit Card Industry in 2024 -

In 2024, the credit card sector is still changing due to technological advancements, consumer tastes, and global economic factors. Visa remains the key competitor in the card network sector, with Mastercard coming in closely behind. These prominent credit card institutions facilitate transactions between individuals, businesses, financial institutions, and processors worldwide. But what are the latest statistics and trends shaping the credit card landscape worldwide?

Rising Number of Credit Card Holders

A significant trend in the credit card sector is the rising usage of credit cards for financial transactions. The number of people with credit cards is expected to increase significantly by 2024 due to the growing global middle class, the popularity of digital payments, and the convenience of using credit cards.

  • As of 2024, around 1.25 billion individuals possess credit cards, which accounts for approximately 16% of the worldwide population.
  • Credit card ownership and usage are widespread globally and are greatly influenced by the age demographics of consumers.    
  • Consumers, particularly Generation X, view credit cards as advantageous because they are convenient and offer various rewards.    
  • Millennials are the primary users of credit cards, with 36% of them using them daily, followed by Gen Zers, Gen Xers, and Baby Boomers. 
  • Roughly 80% of customers favor using credit cards over cash due to their convenience and benefits. 

Industry-Specific Insights

2024 will bring changes to various industries due to shifting consumer tastes and technological advancements. How will these industries be impacted in the upcoming year? 

Casino And Video Gaming

Credit cards play a crucial gaming role, especially online Visa casinos. Even if Visa credit cards and debit cards are not directly accepted by the site, they will often offer a way for you to buy crypto using your Visa, according to Ruth Zammit.

  • About 5% of deposits in online gambling are completed with credit cards, showing how important they are in aiding gaming transactions. 
  • Over 65% of credit card gamblers are men, with Millennials and Gen-Zers preferring alternative payment methods such as e-wallets. 
  • Different age groups use credit cards for gambling at different rates. 
  • Millennials and Generation Z tend to favor debit cards, e-wallets, and cryptocurrencies for everyday transactions and gambling over older generations, such as Generation Xers and Baby Boomers, who tend to prefer using credit cards specifically for gambling activities. 

Although online casinos that allow credit card payments are popular, a small number of deposits are actually made using this method. This indicates that the majority of gamblers opt for alternative payment methods, such as e-wallets or cryptocurrencies when conducting transactions for online gambling.

Hospitality & Tourism

Credit cards are the most used for travel expenses due to the insurance coverage provided with airline tickets. Numerous credit card companies provide incentives and loyalty schemes that enable customers to accumulate points, miles, or cash rebates. These incentives can be exchanged for flights, accommodation, or other travel costs.    

  • The worldwide travel credit card sector earned $16.4 billion in 2022 and is projected to grow to $48.5 billion by 2032, with a compound annual growth rate of 11.8%.
  • Travel credit cards offer benefits such as earning airline miles, accumulating hotel points, receiving cash back on travel purchases, acquiring travel insurance, enjoying access to airport lounges, and avoiding foreign transaction fees.

Retail and Ecommerce

Credit cards are now the favored choice for making online payments due to their convenience, security, and widespread acceptance. They play a vital role in driving the growth of e-commerce by allowing spur-of-the-moment purchases, providing rewards, and taking advantage of promotions that encourage consumers to use credit cards for online shopping.

  • Approximately 70.2% of all retail spending in the United States was made using credit cards. Here, card transaction volume was worth more than $9.5 trillion in 2022.
  • The credit card market in the United States is currently worth $183.9 billion and is expected to increase to $195.1 billion by 2025. Due to the boost in credit card transactions, Amazon and Alibaba, two major players in e-commerce, have seen a rise in revenue growth and market power. 
  • M-commerce or mobile commerce has experienced a notable increase in popularity, with mobile devices contributing a large portion of e-commerce revenue worldwide.

Evolving Consumer Expectations and Rewards

Consumer expectations will continue to influence the credit card industry in 2024.

  • Consumer expectations: Consumer expectations are changing as they are now looking for tailored rewards programs and unique features that meet their requirements, impacting the credit card industry.
  • Adaptation by issuers: Credit card companies are adjusting to evolving consumer preferences by providing personalized reward programs, customized perks, and improved digital services.
  • Data analysis: Analyzing data is crucial for credit card companies to create successful strategies that connect with customers and increase participation by predicting consumer behavior through data analysis and predictive analytics.
  • Trends in 2024: In 2024, there is an anticipation of an increase in cardholder rewards as discretionary spending goes up, leading to more competition among credit card issuers.
  • Rewards evolution: To appeal to younger individuals such as millennials and Generation Z, credit card companies are revamping their rewards programs to emphasize personalization. This change indicates a move towards providing more customized options that align with each person’s unique preferences and financial objectives.

Credit Card Penetration Rates

The top five countries with the most extensive use of credit cards are determined by factors like penetration rates, the presence of widespread credit card companies, and consumer habits. 

  • Canada has the highest credit card ownership rate among consumers, with an impressive penetration rate of 82.7%.
  • Israel is well-known for its high credit card usage, with 83% of consumers using it to purchase at various types of businesses over the last year.
  • In the United States, up to 87% of small businesses accept credit card payments, indicating a high level of credit card usage in commercial transactions.
  • Switzerland has one of the highest rates of credit card usage in the world, at 69.2%, demonstrating a strong preference for digital payments. The average annual digital payment amount made by Swiss consumers is $7,202. 
  • Hong Kong ranks among the top five regarding credit card usage, with 71.6% of the population having credit cards. This highlights credit cards’ crucial role in Hong Kong’s financial system.    

Interestingly, countries like Bangladesh and Morocco have a credit card penetration rate of about one percent, which is quite intriguing.

Conclusion

The credit card industry is poised to undergo significant transformations as it integrates machine learning and artificial intelligence (AI) to enhance fraud detection and risk management. Additionally, the popularity of contactless payments and virtual cards is increasing, with sustainability becoming a priority for numerous consumers. How will credit cards evolve and adjust to these developments beyond 2024?