Debit Card Global Market Report 2022

Major players in the debit card market are Capital One Financial Corp, American Express Company, Visa Inc, MasterCard, Citigroup Inc, PayPal Holdings Inc, Bank of America Corporation, JPMorgan Chase And Co, PayU, and State Bank of India.

The global debit card market is expected to grow from $90.49 billion in 2021 to $93.23 billion in 2022 at a compound annual growth rate (CAGR) of 3%. The market is expected to grow to $96.84 billion in 2026 at a compound annual growth rate (CAGR) of 1%.

The debit card market consists of sales of debit card services by entities (organizations, sole traders, and partnerships) that are engaged in storing, processing, and transmitting payment card data.Debit cards are payment cards that are linked directly to a customer’s bank account and can be used to make purchases and withdraw cash.

Debit cards usually have daily purchase and cash withdrawal limits and transactions made via these cards appear on the accountholder’s bank statement each month.This market excludes cash withdrawals through a cash dispenser.

Only goods and services traded between entities or sold to end consumers are included.

The main types of debit cards are classic, signature, platinum, and gold.The classic debit card refers to the card that allows making payments easier, faster than other cards and will have benefits based on the bank.

The various service providers are visa, Mastercard, Rupay, other service providers. The cards are used in commercial, bank, shopping, other applications.

Asia Pacific was the largest region in the debit card market in 2021.Western Europe was the second largest region in the debit card market.

The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

Reduction in the use of cash following various factors contributed to the growth of the debit card market.Various institutional bodies and governments are trying to minimize the use of cash as cashless transactions reduce the risk of crime and money laundering, lessen tax evasion, and reduce transaction costs for businesses.

For instance.In 2020, a bulletin released by the Bank for International Settlements, advisor to central banks across the world, stated - the pandemic would help gain momentum for cash fewer payments around the world.

In June 2021, according to Financial Times, there is a 35% reduction in cash payments. Thus, reduced use of cash and the ongoing trend of digital payments is expected to drive the debit card market.

The universal presence of mobile has increased the use of mobile payments and wallets which are expected to restrain the debit card market growth.Mobile wallet refers to a payment service through which payments could be received or sent using mobile.

According to a Forbes article published in March 2020, mobile payments in the USA exceeded$130 billion in 2020.Most mobile wallets have built-in security such as fingerprint Touch ID, six-digit password, and other features that reduce the risk of fraud.

Mobile wallets like Apple Pay, Samsung Pay, and Google Wallet are coming with advanced features of store checkout, where the customer just needs to take his phone close to the merchant’s NFC enabled point of sale. Ease of transaction and more safety features in the mobile wallet will increase its use, restricting the growth of other payment modes including debit cards thus restraining its market growth.

Cryptocurrency debit card is a new trend in the cards industry.Crypto debit cards act as an efficient bridge between the existing financial systems and the crypto world.

They offer instant purchasing power from bitcoin or other cryptocurrencies. According to a cards and payments industry report published by Infosys, the cryptocurrency market is expected to reach $1.4 billion by 2024, growing at 6.2% annually. Crypto-backed debit cards allow cardholders to make payments and withdrawal of fiat currency from ATMs, similar to debit cards linked to bank accounts. Major card networks such as MasterCard, Amex, and Visa are focusing on corporate payments with the use of blockchain. Revolut, a UK-based start-up offers the metal card with the MasterCard logo and access to 5 cryptocurrencies and 150 fiat currencies. Moreover, in October 2020, Coinbase launched its cryptocurrency Visa debit card in the USA, which allows customers to spend cryptocurrency anywhere Visa cards are accepted. Increasing acceptance of crypto cards, no foreign exchange fees, access to fiat and crypto-assets with a single card, and cashback rewards are some factors that will support crypto debit card market growth.

In March 2019, MasterCard, a USA-based financial services company acquired Ethoca Limited, a fintech company for an undisclosed amount.The acquisition is expected to help merchants and card issuers to collaborate for identifying and resolving fraud in digital commerce.

Ethoca Limited will strengthen MasterCard’s multi-layered cyber strategy and provide its customers with better checkout every time.MasterCard intends to combine Ethoca Limited with its current security activities, data insights, and AI solutions.

Ethoca Limited is a Canada-based global network of card issuers and merchants that provides intelligence and technology solutions empowering businesses to prevent fraud and improve customer experience.

The countries covered in the debit card market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA