Marginal growth in US cards and payments industry

Growth in cards and payments

A report by Research and Markets points out that the cards and payments industry in the US experienced marginal growth in the period 2007-2011 with combined card volume recording a growth rate of 4.62% in 2011 compared to 2010 (view press release).

The research suggests that the main factors contributing to the overall growth of the market were the need for more sophisticated products in terms of prepaid and charge cards, the growth of online and mobile shopping and increasing levels of per capita income. In terms of volume, the market size of the cards and payments industry increased at a CAGR of 1.35% to reach 1.5billion cards in 2011, and in value terms the market valued at US$4.8trillion in 2011.

Other key highlights of the report, entitled “Emerging Opportunities in the US Cards and Payments Industry: Market Size, Trends and Drivers, Strategies, Products and Competitive Landscape”, reveal that the card payment market grew at a CAGR of 8.87% during the review period from 51.6billion transactions in 2007 to 72.4billion in 2011. In terms of card volume, debit cards remained the largest card market with a market share of 39.1% followed by credit cards with a market share of 33.6%. The US mobile commerce sector has experienced large growth in the last few years, especially in 2011, when the sector recorded annual growth of over 90%, reaching US$6.7billion compared to US$3.5billion in 2010. The US cards and payments industry experienced an increase in online fraud during the same period also. 

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