Charging ahead: Growth is expected to remain steady as the transition away from cash continues

Over the five years to 2018, the Credit Card Issuing industry is expected to rise, as lower unemployment rates and higher disposable incomes amongst consumers helped expand the volume and value of credit card purchases in the United States. The rise of e-commerce and mobile technology has made consumers and businesses increasingly comfortable with shopping and selling online. However, increased regulation and security concerns over company-level data are quickly increasing costs for industry operators. Over the five years to 2023, growth in the industry is expected to remain steady as the transition away from cash and checks toward debit and credit cards continues for consumers and businesses in an increasingly digitalized world...purchase to read more.

Industry Statistics & Market Size
Revenue
$100bn
Annual Growth 13-18
1.1%
Forecast Growth 18-23
Profit
Employment
85,851
Businesses
919

Industry Threats & Opportunities

  • Competition is anticipated to continue increasing as both small and large financial institutions enter the industry
  • Operators still generate significant revenue from cardholder fees
  • There are currently two mobile payment systems
  • Industry Report - Industry Key Buyers Chapter

    The Credit Card Issuing industry exhibits a moderate level of market share concentration, with the four largest players accounting for 65.1% of industry revenue. American Express, Synchrony Financial, Bank of America and Capital One are the top four players, but almost all credit card issuance is done by the 20 largest operators. According to the latest data available from the US Census, the 20 largest operators generate 99.0% of industry revenue. Included in this larger group are Discover Financial, Citigroup and JPMorgan Chase & Co. This high level of concentration amongst the 20 largest operators has also facilitated consolidation within the industry...purchase to read more.

    Additional Insights for the Credit Card Issuing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Credit Card Issuing Industry are

  • Access to the latest available and most efficient technology and techniques
  • Having an extensive distribution/collection network
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as Aggregate household debt and National unemployment rate in the Credit Card Issuing industry impact industry performance..

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    What's in this report

    What is the Credit Card Issuing Industry?

    The Credit Card Issuing industry issues credit cards, providing the funds required to buy goods and services in return for payment on a full balance or installment basis. Credit cards issued in the United States are not issued directly by Visa, MasterCard or any other payment-solution organization. Rather, Visa, MasterCard and other similar corporations provide the actual payment systems used when payments are made by credit card.

    Industry Products
  • Cardholder fees
  • Interchange fees
  • Interest income
  • Industry Activities
  • Providing credit through credit cards
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Aggregate household debt
  • National unemployment rate
  • Prime rate
  • Business sentiment index
  • Per capita disposable income

  • Current Performance
  • Consumer spending habits
  • Government regulations
  • Rising costs
  • Chart: Revenue Growth

  • Industry Outlook
  • Credit cards go mobile
  • Security threats and digital currency
  • Table: Credit Card Issuing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Credit Card Issuing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Debt Collection Agencies
  • Consumers

  • Key Selling Industries
  • Commercial Banking
  • Credit Card Processing & Money Transferring
  • Credit Unions
  • Industrial Banks
  • Investment Banking & Securities Dealing
  • Savings Banks & Thrifts

  • Products & Services
  • Interest income
  • Interchange fees
  • Cardholder fees
  • Chart: Credit Card Issuing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Individuals aged 30 to 65
  • Individuals aged 65 and over
  • Individuals aged 19 to 29
  • Businesses
  • Chart: Major Market Segmentation for the Credit Card Issuing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitOtherWagesMarketingRent, utilities and purchasesDepreciation
  • Chart: Cost Structure Benchmarking – Sector vs Credit Card Issuing

  • Basis of Competition
    External competitionInternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Credit Card Issuing Industry

  • Industry Globalization
    American Express Company, Capital One Financial Corporation, Synchrony Financial, Bank of America Corporation, JPMorgan Chase & Co., Citigroup Inc., Discover Financial Services,
  • Table: American Express Company - financial performance
  • Table: Capital One Financial Corporation - financial performance
  • Table: Synchrony Financial - financial performance
  • Table: Bank of America Corporation - financial performance
  • Table: JPMorgan Chase & Co. - financial performance
  • Table: Citigroup Inc. - financial performance
  • Table: Discover Financial Services - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Credit Card Issuing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Credit Card Issuing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Per Capita Disposable Income (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Charge-Off
  • When a customer is unable to repay a debt, often at the point of six months without repayment, the debt is written off as uncollectible.
  • Interchange Fee
  • Payment made by one bank to another to process credit and debit transactions made on cards from another bank.
  • Loan Loss Provision
  • An expense set aside for bad loans.
  • Revolving Credit
  • Consumer credit line that can be used up to a certain limit or paid down at any time.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Credit Card Issuing Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Credit Card Issuing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Credit Card Issuing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Credit Card Issuing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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