Charging ahead: Renewed consumer confidence will stimulate credit card use and enable growth

Over the five years to 2017, 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 2022, 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...read more.

Industry Statistics & Market Size
Revenue
$96bn
Annual Growth 12-17
1.6%
Forecast Growth 17-22
Profit
Employment
74,399
Businesses
1,316
What Our Customers Say

Industry Threats & Opportunities

  • The rising popularity of contactless mobile payment methods will support the industry
  • Federal regulations have directly affected the industry by increasing oversight
  • An improving economy, increased e-commerce and security and higher interest rates will help spur revenue
  • Industry Report - Starting a New Business Chapter

    The Credit Card Issuing industry has high barriers to entry due to tight regulations, high company concentration, large capital requirements and loyal customer bases due to reward programs. Credit card issuers are subject to supervision, examination and inspection by the Federal Reserve Board (FRB), ensuring they meet capital requirements set out by the FRB, representing a barrier to potential entrants. The industry is dominated by a few major players whose financial strength allows them to underprice potential entrants, making it more difficult for them to compete in the industry.There is widespread demand for credit cards, and a large number of customers in the United States who qualify for them. Fur...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 is the Credit Card Issuing Industry?

    This 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
  • Households earning more than $100,000
  • Per capita disposable income

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

  • Industry Outlook
  • Credit cards go mobile
  • Industry threats
  • 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
  • Cardholder fees
  • Interchange fees
  • Interest income
  • 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
  • Profit
  • Other
  • Wages
  • Marketing
  • Rent and utilities and purchases
  • Depreciation
  • Chart: Cost Structure Benchmarking – Sector vs Credit Card Issuing

  • Basis of Competition
  • External competition
  • Internal competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Credit Card Issuing Industry

  • Industry Globalization
    Bank of America Corporation American Express CompanyCapital One Financial CorporationJPMorgan Chase & Co.Citigroup Inc.Discover Financial Services
  • Table: Bank of America Corporation - financial performance
  • Table: American Express Company - financial performance
  • Table: Capital One Financial 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 (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per Capita Disposable Income (2008-2022)

  • 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.
  • 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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