Starter Credit Cards Global Market Report 2024

A starter credit card, also referred to as a beginner credit card, targets individuals who are new to credit or have limited credit histories. These cards typically offer lower credit limits and higher interest rates, aiming to assist users in building their credit scores. They often provide basic rewards and benefits to help new cardholders establish and manage credit responsibly.

The primary types of starter credit cards include student credit cards, secured credit cards, and unsecured starter credit cards. Student credit cards cater specifically to college students with minimal credit history, offering benefits such as cash back rewards, no annual fees, and educational resources on credit management. These cards are offered by banks, non-bank financial companies (NBFCs), credit unions, and other financial institutions, with options categorized into no annual fee and low annual fee varieties.

The starter credit cards market research report is one of a series of new reports that provides starter credit cards market statistics, including starter credit cards industry global market size, regional shares, competitors with an starter credit cards market share, detailed starter credit cards market segments, market trends and opportunities, and any further data you may need to thrive in the starter credit cards industry. This starter credit cards market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The starter credit cards market size has grown rapidly in recent years. It will grow from $276.32 billion in 2023 to $304.43 billion in 2024 at a compound annual growth rate (CAGR) of 10.2%. The growth in the historical period can be attributed to economic conditions, regulatory changes, shifts in lifestyle, initiatives to improve credit accessibility, education, and increased awareness.

The starter credit cards market size is expected to see rapid growth in the next few years. It will grow to $450.39 billion in 2028 at a compound annual growth rate (CAGR) of 10.3%. The growth in the forecast period can be attributed to shifting demographics, the rise of personalized financial products, anticipated regulatory changes, changes in consumer behavior, and increasing demand for financial products. Key trends expected during this period include enhanced mobile integration, biometric authentication, improvements in customer experience, the use of blockchain for security, and the application of artificial intelligence (AI) in credit decisions.

The growth of the starter credit card market is poised to accelerate with the rise of digital payments. Digital payments involve electronic transactions through mobile devices or online platforms, eliminating the need for physical cash or cards. This surge is fueled by convenience, enhanced security measures, widespread smartphone adoption, and increasing acceptance among merchants. Starter credit cards play a crucial role in promoting digital payment adoption by enabling individuals with limited credit histories to engage in cashless transactions, thereby supporting financial inclusion and fostering growth in the digital economy. For example, in November 2022, digital payments accounted for 42.1% of total retail payment volume and 40.1% of total retail payment value in the Philippines, marking a significant increase from the previous year and underscoring the pivotal role of digital payments in driving the starter credit card market forward.

Leading companies in the starter credit card market are prioritizing innovation, such as secured credit cards, to attract new customers and expand their market presence. Secured credit cards require a cash deposit as collateral, typically equivalent to the credit limit, to mitigate risk for lenders and help individuals build or rebuild their credit. In January 2024, College Ave introduced the Ambition Mastercard, a secured credit card tailored for college students aged 18 and above. Developed in partnership with Bond, an embedded finance platform owned by FIS, this card offers no interest charges, late fees, or application fees, along with cash-back rewards and reports timely payments to major credit bureaus. It aims to assist students in establishing a positive credit history and complements College Ave's existing financial solutions.

In February 2024, Capital One Financial Corporation acquired Discover Financial Services for $35.3 billion to strengthen its market position and diversify its financial offerings. Discover Financial Services, renowned for its student loans and credit cards, brings a robust customer base, advanced technology platforms, and a comprehensive range of financial products to Capital One's portfolio. Discover Financial Services is a US-based financial services company that provides student loans and credit cards.

Major companies operating in the starter credit cards market are JPMorgan Chase & Co., Bank of America Corporation, Wells Fargo & Company, Citigroup Inc., American Express Company, TD Bank N.A., Capital One Financial Corporation, Barclays PLC, BBVA USA, U.S. Bancorp, PNC Financial Services Group Inc., Discover Financial Services, Synchrony Financial, Fifth Third Bank, Regions Financial Corporation, Navy Federal Credit Union (officially known as Navy Federal Credit Union), Comerica Incorporated, Green Dot Corporation, Credit One Bank N.A., Merrick Bank Corporation, Avant LLC, First Premier Bank, Petal Card Inc., Applied Card Bank, Deserve Inc.

North America was the largest region in the starter credit cards market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the starter credit cards market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the starter credit cards market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The starter credit cards market consists of revenues earned by entities by providing services such as the issuance of credit cards, interest charges, credit monitoring services, late fees, and penalties. The market value includes the value of related goods sold by the service provider or included within the service offering. The starter credit card market also includes sales of retail store credit cards and subprime credit cards. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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