The Balances outstanding of the Credit cards industry in United States of America,attained a value of USD 1,080,843.10 in 2023
The indicator recorded a historical decline (CAGR) of 8.84% between 2020 and 2023, and is expected to grow by ...
GlobalData projects the indicator to grow ...
Market size for Credit cards (outstanding balances) in United States of America recorded a low-double-digit decline in 2020
The US credit cards sector experienced strong growth until 2019, followed by a low-double-digit decline in 2020.
While US consumers have been traditionally credit-reliant, the economic uncertainty caused by COVID-19 has seen consumers increasingly turning towards debit cards for payments, which forced the sector into a decline in 2020. According to Visa, the crisis is driving a shift away from credit card purchases in favor of debit card payments.
Outstanding balances refer to the value of loans outstanding at a given point in time, usually at year-end.
Five Forces Analysis
The large size of players in this sector serves to strengthen rivalry in this market, in spite of its fairly consolidated structure. Competition based on interest rates in this sector serves to stimulate competition between companies, offering new incentives to entice customers into using their credit cards. Although players may be able to differentiate their credit card offerings through rewards programs and loyalty schemes, products remain virtually undifferentiated. This, coupled with virtually non-existent switching costs, high exit barriers, and a high level of similarity between players, contributes to an intensified rivalry level in this market.
Switching costs are generally low in this market and initiatives such as 0% balance transfers are employed by players in order to encourage switching. Given the fact that there is often little differentiation between credit cards, at least on a consumer level, buyers are heavily swayed by price factors, such as interest rates, which act as a much more powerful force than brand loyalty in this market. However, brand loyalty has to be taken into account when considering the type of consumers who choose specific credit cards based on their perceived social status, strengthening buyer power.
Competitive Landscape
Prior to 2020, the US credit card sector grew strongly, which alleviated rivalry between leading players somewhat. According to in-house research, the US credit and charge card market is concentrated, with the top five issuers accounting for a mid-double-digit percentage of total credit and charge card transaction value in 2020. The leading players include JPMorgan Chase & Co, Bank of America, Citibank and American Express. These firms have significant power, money, and presence in the sector but face competition from firms such as Capital One and Discover, as well as retailers which offer their own credit cards.
United States of America
United States of America
United States of America
United States of America
United States of America
United States of America
United States of America
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