The Europe Credit Cards Market size in terms of transaction value is expected to grow from USD 2.47 trillion in 2024 to USD 2.84 trillion by 2029, at a CAGR of 2.83% during the forecast period (2024-2029).
Cards are the fastest-growing form of non-cash payment worldwide, with the number and volume of transactions growing by over 13% annually. The European card market retains huge growth potential despite the current global economic crisis and particularly difficult conditions in the financial services industry. Currently, 80% of transactions in Europe are still made in cash. European card issuers can draw on trends in mature markets to identify the strategies they need to realize this potential. These include building more sophisticated reward programs, introducing enhanced services, and developing targeted offerings for different segments.
For card providers seeking further growth, maximizing the value they derive from customers and expanding the customer base. The European finance market is ripe for change, too. Issuers must constantly adapt to maintain customer relationships and trust as new competition continues to emerge. Partnerships with digital players and established brands could help issuers gain an edge in key areas, including user experience and customer engagement.
The integration of the European retail payments markets has been going on for almost two decades. The Single Euro Payments Area (SEPA) is now a reality for over 500 million citizens using uniform credit transfers and direct debits. In contrast, card payments still lack the same degree of market integration, harmonization of business practices and rules, and technical standards. Although cards have been the fastest-growing means of payment in Europe for some time, some users (cardholders and merchants) have not benefited as much as they could have if a SEPA for cards had been achieved.
The COVID-19 pandemic, from 2020 onwards, made society more hygiene-aware and seemed to have affected people's preferences over cash versus cards. The volume of cash used in the UK dropped by up to 60% during COVID-19. Credit card use almost certainly increased during the pandemic, especially when compared with cash. Contactless payments will also doubtless increase.
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Cards are the fastest-growing form of non-cash payment worldwide, with the number and volume of transactions growing by over 13% annually. The European card market retains huge growth potential despite the current global economic crisis and particularly difficult conditions in the financial services industry. Currently, 80% of transactions in Europe are still made in cash. European card issuers can draw on trends in mature markets to identify the strategies they need to realize this potential. These include building more sophisticated reward programs, introducing enhanced services, and developing targeted offerings for different segments.
For card providers seeking further growth, maximizing the value they derive from customers and expanding the customer base. The European finance market is ripe for change, too. Issuers must constantly adapt to maintain customer relationships and trust as new competition continues to emerge. Partnerships with digital players and established brands could help issuers gain an edge in key areas, including user experience and customer engagement.
The integration of the European retail payments markets has been going on for almost two decades. The Single Euro Payments Area (SEPA) is now a reality for over 500 million citizens using uniform credit transfers and direct debits. In contrast, card payments still lack the same degree of market integration, harmonization of business practices and rules, and technical standards. Although cards have been the fastest-growing means of payment in Europe for some time, some users (cardholders and merchants) have not benefited as much as they could have if a SEPA for cards had been achieved.
The COVID-19 pandemic, from 2020 onwards, made society more hygiene-aware and seemed to have affected people's preferences over cash versus cards. The volume of cash used in the UK dropped by up to 60% during COVID-19. Credit card use almost certainly increased during the pandemic, especially when compared with cash. Contactless payments will also doubtless increase.
Europe Credit Cards Market Trends
Increasing Card Transactions in Europe have a Major Impact on Credit Card
Most people see payment cards as a quick and easy way of making retail payments. They are the most widely used and fastest-growing electronic payment instrument in Europe. In Europe, the payment card is the most commonly used payment instrument in terms of volume. The usage of payment cards had grown at the expense of the check, which some countries like the Netherlands suppressed altogether when the Euro was introduced. The average amount of a card payment varies from one country to the other. The discrepancies observed are due to differences in consumer habits and living standards. The total value of transactions increased year-on-year throughout this period.
Iceland has highest Credit Card Penetration rate in Europe
The share of the adult population in European countries varied from eight percent in Albania to as high as 71 percent in Norway. Using a credit card allows the cardholder to pay for goods and services with the agreed promise to the card issuer that they will repay the amount borrowed either in installments or as a single payment. In Europe, there are two leading credit card providers. Between Visa and Mastercard, they make up over 90 percent of Europe's purchase volume market share. In total, there are over 810 million payment cards across the continent. In Europe, cash accounted for 26% of all POS payments. Norway had the lowest cash use worldwide in 2021 at just 4%, while Spain saw the highest at 47.1%.
Europe Credit Cards Industry Overview
The Europe Credit Cards Market is highly competitive and fragmented as various international and regional vendors provide new technology to various end-use industries to expand the market. The key players are emerging to improve their products and delivery through low-interest rates and enhance their products to have a competitive edge over others. Furthermore, the companies are involved in acquisitions and expansion to improve their product offerings and increase the number of transactions. Hence, this section includes the company profiles of the key players and industry analysis. The Credit Card industry across Europe is offered by groups such as Capital One, Citi Bank, Chase, Bank of America, and Advanzia Bank.Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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Table of Contents
1 INTRODUCTION
4 MARKET DYNAMICS AND INSIGHTS
5 MARKET SEGMENTATION
6 COMPETITIVE LANDSCAPE
Methodology
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