Credit Cards Industry Profile

Companies in this industry issue credit cards used by consumers and businesses to purchase goods and services in return for payment in full or in installments. Major companies include Alliance Data Systems, American Express, Capital One Financial, and Discover Financial (all based in the US), as well as Credit Saison and Mitsubishi UFJ NICOS (both of Japan), and UnionPay (China). Major retailers, banks, and oil and gas companies also issue credit cards.

The number of credit cards in circulation exceeds 635 million in the US and 1 billion worldwide, according to CreditCards.com. Just 10 nations account for more than 80% of global credit card issuing revenue, according to consulting firm McKinsey & Co. The US and Brazil are the largest by revenue, accounting for more than half of global revenue. Other major markets include Japan, Canada, the UK, and South Korea.

The US credit card industry includes about 660 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $128.4 billion.

Financial transaction processors, such as MasterCard and Visa, provide transaction services for companies that issue credit cards and to merchants that accept credit card payments. That industry is discussed in a separate profile. Many card issuers use the MasterCard and Visa brands.

COMPETITIVE LANDSCAPE

New payment technologies, including contactless, digital, and mobile payments, are disrupting the lucrative global payments industry and forcing credit card issuers to innovate ...