Credit Card Issuance in Australia - Market Research Report (2014-2029)

Red card: Alternative payment methods are growing in popularity and diminishing credit card revenue

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

The Credit Card Issuance industry has contracted as the number of cards issued and balances accruing interest have fallen. Issuers have faced significant competition from other forms of payment like debit cards and BNPL services. The monthly value of debit card transactions has surpassed the monthly value of credit card transactions in recent years. BNPL services have also gained a lot of popularity with younger consumers who constitute a significant market for online sellers. That's why revenue is set to weaken by an annualised 10.1% over the five years through 2022-23, to $6.1 billion. To compete with sophisticated competition, credit card issuers have integrated online payment, service, and customer acquisition platforms into their operations.

The industry issues credit and charge cards to businesses and consumers. These cards provide users with a line of credit to use for purchases or cash advances. Credit card balances roll over month to month and can be repaid in full or by instalment. Charge card balances must be paid in full each month. The cards are issued by financial institutions rather than directly by Visa or MasterCard, which only provide the transaction processing networks.