Bank Cards Market

Market Definition

The bank cards industry comprises credit, debit, and prepaid cards issued by financial institutions, enabling electronic payments and cash withdrawals. It includes card networks (Visa, MasterCard), issuing banks, and payment processors.

Bank Cards Market Overview

The global bank cards market size was valued at USD 702.14 billion in 2023 and is projected to grow from USD 756.81 billion in 2024 to USD 1367.77 billion by 2031, exhibiting a CAGR of 8.82% during the forecast period.

This growth is driven by the global transition to cashless transactions, advancements in technology, and more secure transaction options. As a key component of the financial ecosystem, the market is expanding with increasing card usage globally and rising demand for contactless payments and mobile wallets.

Major companies operating in the bank cards industry are American Express, Bank of America Corporation, Citigroup Inc., Credit One Bank, N.A., Banco Santander S.A., HSBC Group, JPMorgan Chase & Co., Visa, Axis Bank, Synchrony Bank, Barclaycard, Capital One, U.S. Bank, Wells Fargo, and HDFC Bank Ltd.

The market is experiencing significant growth, attributed to the expansion of contactless payments, rising disposable incomes, and financial inclusion initiatives. The widespread adoption of Near-Field Communication (NFC) technology enhances transaction speed and convenience, accelerating consumer preference for contactless card payments.

Key Highlights:

1. The bank cards market size was recorded at USD 702.14 billion in 2023.
2. The market is projected to grow at a CAGR of 8.82% from 2024 to 2031.
3. North America held a share of 34.39% in 2023, valued at USD 241.45 billion.
4. The debit card segment garnered USD 276.50 billion in revenue in 2023.
5. The ATM segment is expected to reach USD 757.74 billion by 2031.
6. Asia Pacific is anticipated to grow at a CAGR of 8.90% over the forecast period.

Market Driver

“Increasing Adoption of Digital Payments and Favorable Regulatory Policies”

The growth of the bank cards market is primarily fueled by the increasing adoption of digital payments and the global shift toward a cashless economy. Rising smartphone penetration, internet accessibility, and advancements in fintech solutions have significantly influenced consumer payment preferences, leading to a surge in card-based transactions.

Additionally, government initiatives promoting financial inclusion and cashless transactions, coupled with favorable regulatory policies, promote wider acceptance of bank cards.

As digital transformation continues across industries, the reliance on bank cards for seamless, secure, and convenient transactions is expected to rise, driving further innovation and expansion within the market.

• In December 2024, according to the Reserve Bank of India, credit card circulation surged to approximately 10.80 crore, more than doubling from 5.53 crore in December 2019. Meanwhile, debit card numbers saw a modest rise from 80.53 crore to over 99.09 crore. A bank-wise analysis further breaks down these trends, reflecting similar growth in card transactions.

Market Challenge

“Increasing Risk of Fraud and Cybersecurity Threats”

Major challenge hindering the development of the bank cards market is the increasing risk of fraud and cybersecurity threats. With the rise of online transactions and digital payments, fraudulent activities such as card skimming, phishing attacks, and identity theft have become more sophisticated, posing a significant risk to consumers and financial institutions.

To mitigate fraud risks, financial institutions must invest in advanced security technologies, such as artificial intelligence (AI)-driven fraud detection systems, tokenization, and biometric authentication. Implementing real-time transaction monitoring and multi-factor authentication (MFA) can enhance security while reducing unauthorized access.

• For instance, in May 2024, Mastercard implemented generative AI to enhance fraud detection. By utilizing this technology to identify and prevent suspicious transactions in real time, the company has doubled the speed of detecting compromised cards, enabling faster action by banks to block them.

Market Trend

“Growing Popularity of Contactless Payments”

A prominent trend in the bank cards market is the growing popularity of contactless payments. Near-field communication (NFC) technology enables users to make quick and easy payments by simply tapping their cards or mobile devices on compatible terminals. This trend is fueled by the convenience and speed offered by contactless payments, as well as post-pandemic hygiene concerns.

The increasing availability of contactless-enabled cards and terminals, coupled with consumer awareness campaigns, is further accelerating the adoption of this technology. Contactless payments are expected to become a standard feature of bank cards in the near future, reshaping everyday transactions.

• For instance, in July 2024, Paytm introduced India’s first NFC-enabled Card Sound box, combining instant audio payment confirmations with contactless card transactions. This innovation enhances merchant convenience by supporting tap-and-pay functionality while ensuring seamless and secure payment experiences.

Bank Cards Market Report Snapshot

Segmentation	Details
By Card Type	Debit Card, Credit Card, Others
By Payment Transactions	ATM, POS
By Region	North America: U.S., Canada, Mexico
	Europe: France, U.K., Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, UAE, Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Card Type (Debit Card, Credit Card, and Others): The debit card segment earned USD 276.50 billion in 2023 due to the widespread use of debit cards for everyday transactions, offering a convenient and direct link to consumers' bank accounts.
• By Payment Transactions (ATM and POS): The ATM segment held a share of 55.44% in 2023, fueled by the growing reliance on cash for certain transactions, particularly in developing economies.

Bank Cards Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

North America bank cards market captured a share of around 34.39% in 2023, valued at USD 241.45 billion. This dominance is attributed to the region's well-established financial infrastructure, high adoption of digital payment technologies, and strong consumer preference for card-based transactions. The presence of major market players and technological advancements further contribute to the regional market growth.

Asia Pacific bank cards industry is set to grow at a CAGR of 8.90% over the forecast period, fueled by rapid digitalization, expanding financial inclusion initiatives, and increased consumer demand for secure, efficient payment solutions.

Increasing disposable incomes in developing economies within the region are driving consumer spending and the demand for convenient payment methods such as bank cards. Expanding financial inclusion initiatives are extending banking services to previously underserved populations, leading to increased card ownership and usage.

• In 2023, according to the federal reserve system, 82% of adults owned a credit card, with roughly equal distribution between those who paid off balances monthly and those who carried balances. Around 25% of cardholders carried a balance most of the time, highlighting diverse consumer behaviors in the market.

Regulatory Framework

• In the U.S., the Consumer Financial Protection Bureau (CFPB) regulates bank cards, ensuring compliance with consumer protection laws, fair lending practices, transparent disclosures, and fee regulations. It safeguards consumers from unfair, deceptive, or abusive financial practices while promoting accountability in the banking sector.
• In Europe, the European Commission regulates bank cards under frameworks such as the revised payment services directive (PSD2) to enhance security, transparency, and competition in digital payments.
• In China, the People’s Bank of China (PBOC) oversees the banking and payment systems, regulating the issuance, operation, and security of bank cards.

Competitive Landscape

The global bank cards market is characterized by a large number of participants, including both established corporations and emerging players. Key market participants are fostering innovation and advancing technology to solidify their positions in a rapidly evolving sector.

With applications ranging from retail transactions and online payments to contactless solutions and digital banking services, companies continually refine their product portfolios to meet diverse customer needs.

As the market expands significantly, businesses are focusing on deepening regional penetration by tailoring solutions to local regulatory and consumer demands while simultaneously scaling operations to capitalize on international opportunities.

• For instance, in June 2023, Aurionpro launched ECR One, the first EMV card type payment terminal by an Indian company, at UITP Barcelona. This breakthrough enhances secure and efficient card transactions, accelerates digital payment adoption, and strengthens the company’s position in the global market.

List of Key Companies in Bank Cards Market:

• American Express
• Bank of America Corporation
• Citigroup Inc.
• Credit One Bank, N.A.
• Banco Santander S.A.
• HSBC Group
• JPMorgan Chase & Co.
• Visa
• Axis Bank
• Synchrony Bank
• Barclaycard
• Capital One
• S. Bank
• Wells Fargo
• HDFC Bank Ltd.

Recent Developments (M&A/Partnerships/ New Product Launch)

• In September 2024, Axis Bank and Mastercard partnered to launch a premium credit card for small business owners. This initiative enhances credit access, digital payment capabilities, and tailored benefits, fostering innovation and competitive growth in the bank cards landscape.
• In February 2024, Capital One acquired Discover, signifying strategic consolidation in the market, driving enhanced digital payment capabilities and an expanded product portfolio. This integration is expected to streamline operations, accelerate innovation, and fuel competitiveness in financial services.
• In August 2024, Axis Bank and Visa launched the Primus ultra-luxury credit card, designed specifically for India's elite. Offering exclusive rewards, bespoke benefits, and robust security features, this move reinforces the bank’s position in the high-end global market.