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United States Cards & Payments Market Report

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  • Published Date: November 2022

US CARDS AND PAYMENTS MARKET REPORT

A comprehensive overview of the cards, payments and consumer banking market in the United States, with clearsighted commentary backed by relevant data.

What is happening in the US cards and payments market?

Credit cards have rebounded spectacularly from the pandemic, with spend in 2022 over 50 percent higher than in 2020. Although digital-payment options are growing, cards remain indispensable to Americans. The average consumer makes 11.5 card purchases per week. At the point of sale, Tap to pay is finally taking off: one in four in-person card payments are now contactless.

What can we expect in cards and digital payments here?

Thanks to e-commerce and P2P uplift, mobile payments are enjoying high growth after several false starts. Providing another boost, new real-time payments network FedNow goes live in 2023. Almost 80 percent of retailers here now accept contactless, with over half of all cards here having the functionality as 2022 began. PayPal Credit, Affirm and Klarna (which has has launched an interest-free credit card) are the big BNPL players, but Apple Pay Later enters the space in 2023. Debit and prepaid-card spend has increased on the back of the government preferring to disburse and receive monies via the likes of the U.S. Debit Card.

How are other players and challengers faring?

Interchange-fee revenues have been rising on growth in online spend and Premium cards. However, influential lawmakers from the major political parties are pushing for routing mandates to open up competition and drive down swipe fees. Issuers are pouring resources into the fight for new customers, offering new product portfolios and more flexible reward offerings. Post-Covid, customers have become reluctant to be locked into a single airline programme, preferring to redeem more widely. Cobrand partnerships are important differentiators for issuers, with Big-Tech brands becoming increasingly prevalent.

What about global players? What are they encountering in this cards and payments market?

Visa and Mastercard continue to benefit from spend but have also been diversifying into alternative payments. American Express and Discover are competing energetically: routing mandates, if enacted, could shake up the networks-market profile. The Big Tech giants continue to delve into payments and consumer-facing financial services, but with mixed success.

This is what you will learn from this report:

  • How this remarkable market continues to surprise
  • Why cash remains so resilient
  • Which profit pool drivers are key
  • How the industry is responding to multiple challenges
  • What the future holds for credit, debit and prepaid cards

How is this report put together? What is the aim?

The report explores the American payments system covering infrastructure payment preferences, consumer payment trends and the development of online payment systems. As well as a detailed US credit-card report, our experts chart the development of mobile payments including proximity and P2P payments. Our writers and researchers frame information in contexts such as historical, sectoral and regional trends, adding a layer of value often missing from the rolling news cycle. The report enables clients to make sound strategic business decisions with the support of detailed historic and forecast market data for the United States' cards and payments markets.

US Payments Research | Report Contents

TABLE OF CONTENTS
Key facts
Payments environment
Cards market
Mobile payments
Profit pool
The networks
Key retail banks and issuers
Acquiring and processing
Online acquiring
Regulatory and other cards market information

Data Tables

(All 2016-25F unless otherwise stated)

1: Demographic and economic indicators
2: Ownership of key consumer devices
3: Internet usage by population
4: Access points 2016-23E
5: Account penetration
6: Consumer payment trends 2016-23E
7: B2C e-commerce payment methods 2016-23E
8: Total cards payment metrics
9: Contactless cards metrics 2018-25F
10: Credit card numbers
11: Total credit cards metrics
12: Credit cards profitability indicators
13: Debit cards numbers
14: Debit cards metrics
15: Prepaid/e-money cards metrics
16: Mobile proximity payment metrics
17 : Mobile P2P payments
18: US market profit pool including credit card numbers, billed volumes, outstandings, interest incomes, net interest revenues, merchant revenues, card fee revenues, other non-interest incomes, total revenues, net credit losses, operating expenses, total expenses, pre-tax profits, merchant service charges, rollover rates, APR, net credit losses to outstandings, operating costs to revenues, ROA (pre-tax profits to outstandings).

(All 2016-23F below unless otherwise stated)

19: Networks' credit card market shares
20: Networks' credit card numbers
21: Networks' credit card billed volume
22: Networks' number of credit card transactions
23: Networks' average credit card transaction value
24: Credit card interchange fees by network
25: Networks' debit card market shares
26: Networks' debit card numbers
27: Networks' debit card billed volume
28: Networks' number of debit card transactions
29: Networks' average debit card transaction value
30: Debit card interchange fees by network
31: Key credit card issuers market shares by credit card numbers 2018-23F
32: Key issuers market shares in credit card outstandings 2018-23F
33: Key debit card issuers market shares by debit card numbers 2018-23F
34: Key private-label card issuers market shares by credit card numbers 2018-23F
35: Merchant acquirer credit card market share 2022E
36: Credit card merchant service charges
37: Merchant acquirer debit card market share: 2022E
38: Debit card merchant service charges
39: Credit card issuer/issuing processor relationships
40: Credit card acquirer/acquiring processor relationships
41: Credit card issuing processor market shares by card numbers 2022E
42: Credit card acquiring processor market shares by the number of POS transactions 2022E
43: Online merchant acquirer market share 2022E

United States Country Report | Selected Extracts

Payments Environment
With growth rates far outstripping that of cash throughout the period under review, card payments are, overwhelmingly, the preferred payment method for consumers.

Cards market
Using payment cards for online transactions is popular, with an increasing number of Americans purchasing goods and services online, mostly funded by credit card.

Mobile Payments
Adoption of mobile payments in the United States is making perceptible progress, albeit at a slower rate than in other developed markets despite the fact that some 85 percent of Americans owned a smartphone at the end of 2021.

Profit Pool
Credit cards continue to be a big revenue driver for American banks. According to AAR's profit pool model, pre-tax profits were $44 billion in 2021.

Card Networks
A quartet of networks – Visa, Mastercard, American Express and Discover – control the credit cards market... Most debit cards in this market are Visa- or Mastercard-branded.

Key Retail Banks and Issuers
A small number of large banks hold a commanding position in the retail- banking sector, most notably JPMorgan Chase, Bank of America, Wells Fargo and Citibank. However, there is a long tail of smaller competitors, including regional and specialist players, ensuring a healthy market.

Acquiring and Processing
Integrated payments have also become a key focus for acquirers here. This involves payments being embedded into POS software that has been designed for specific merchant types, for example in healthcare, hospitality or education. It is common in this market for both issuers and acquirers to outsource processing.

Online Acquiring
The e-commerce market in the United States has performed well during the period under review and only saw minimal decline during the pandemic.

Regulatory and Markets Information
The sheer size and complexity of the American banking and payments sector has resulted in a dense and idiosyncratic regulatory landscape. Private market participants, the Federal Reserve (which serves as the country's central bank) and a variety of authorised regulators are involved in payment mechanisms and structures.

US Payments Report | Entities Referenced

Accel
Active Network
Advent International
Adyen
Affirm
Afterpay
Alipay
Alliance Data
Amazon
American Express
Android Pay
Apple
Apple Pay
Apple Pay Later
Apple Wallet
Apple
Aspiration
Authorize.Net
Axos
Bain Capital
BAMS
Bancomat
Bancorp Bank
Bank of America
Bank of America Merchant Services
Bank of Delaware
Bank of Hawaii
Bank of Italy
BankAmerica
Barclaycard
Barclays US
BBVA Compass
Best Buy
BigCommerce
Block
Bluebird
BMO Harris
BofA
Braintree
Bread Financial
Capital One
Cardless
Cash App
Cayan
CBDC Testing Platform
CFPB
Chase
Chase Merchant Services
Chase Pay
Chevron
Chime
Citi
Citi Retail Services
Citibank
Citigroup
City Bank of New York
Clover POS
Conference of State Bank Supervisors
Consumer Financial Protection Bureau
Crédit Mutuel Arkéa
CSBC
CU24
Culiance
Current
CyberSource
Dean Witter Discover & Co.
Delta
Department of the Treasury
DinaCard
Discover
Discover
Discover Bank
Discover Financial Services
Discover Global Network
DoorDash
D-Wave Systems
Early Warning Services
Eazy Financial Services
eBay
Ekata
Elavon
Elo
Ethereum
EVO Payments
ExxonMobil
Facebook
Fed
Federal Reserve
FedNow
FFMC
Fidelity National Information Services
Fifth Third Bank
Financial Crimes Enforcement Network
FinCEN
Finicity
First Data
First Financial Management Corp
First National City Bank of New York
FIS
Fiserv
Foot Locker
Gateway
GE
GE Capital Retail Bank
General Electric
Global Payments
Gobank
Goldman Sachs
Google
Google Wallet
Green Dot
Heartland Payment Systems
Hello Fresh
Hilton
Home Depot
ICBA
Interbank Card Association
Interlink
J.P. Morgan Payments
JC Penney
Jeanie
JPMorgan Chase
Klarna
Kohl's
La Banque Postale
MABA
Macy's
Maestro
Mark and Graham
Marriott
Master Charge
Mastercard
MetaBank
Microsoft
Mid-America Bankcard Association
Morgan Stanley
N26
National Data Corporation
NationsBank
Navy FCU
Nets
Netspend
Nissan
Nova Information Systems
Novo
NYCE
NYDIG
OakStone Financial
OCC
Office of the Comptroller of the Currency
OnDeck
One Finance
PayFlow
Payments One
PayPal
PayPal Credit
PayPros
PaySimple
Phos
Plaid
Plan It
PNC Bank
Pottery Barn
PULSE
QuadPay
Quorum
RBS
Realex Payments
Regions Bank
Rejuvenation
Revolut
Roostify
RuPay
Sage
Samsung Pay
Santander
Saudi Payments
Sears
SecureNet Payment Systems
Sezzle
Shazam
Shell
SICOM
Signet Financial Corp
SoFi
Square
Square Cash
Stable
Star
STAR
Starbucks
Stripe
SunTrust Bank
Synchrony
Synchrony Financial
Tap to Phone
Target
TCH
TD Bank
The Clearing House
Tink
Transfirst
Treasury Dept
Truist
TSYS
U.S. Bancorp
U.S. Bank
U.S. Debit Card
USAA
USAlliance
VAC
Vantiv
Varo
Varo Bank
Venmo
Verve
Visa
Visa Acceptance Cloud
Walmart
Wells Fargo Merchant Services
West Elm
Williams-Sonoma
Worldpay
Zelle

MORE NORTH AMERICA PAYMENTS REPORTS

Argus Advisory Research reports deliver invaluable market and competitor intelligence on payments cards, e-money, acquiring/processing, retail banking, and consumer credit. Analysts and researchers use both primary and secondary source data and conduct in-depth interviews with senior industry executives and local experts.

See more North America Country Reports or explore the full range of worldwide cards & payments reports available for 72 markets world-wide.

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