The rise of technology is more often positively effecting all things and credit cards are no exceptions. Innovation clubbed with tech has taken the credit card segment to a higher level which was once unimaginable. The usage of credit paying systems especially the cards has gone by heaps and bounds in the last decade.
The industry has flourished mainly because of small business units utilizing the facility. Moreover, credit card companies are smartly working towards getting young users from around the world as their clients. Here’s a time when credit card providers are striving hard to safeguard their market share and several tricks like massive discounts, facilities and attractive paybacks are on offer to keep the ball the rolling.
Premium customers are major force for credit card industry, US has 11.53mn millionaire households highest worldwide
Essential Trends that determine Credit Card Industry for the future:
Small Business Units-Huge Booster
Talking of small businesses, they are growing in tremendous speed especially in the developing parts in Asia-specifically India is doing too good as the start-up culture has caught attention and thus credit business will surely be a larger part than ever.
The pattern of small business units in the US alone has crept up by a whopping 10.1% within the span of 2 years. The trend is fixed to continue into 2016 too; hence features like betterment in macroeconomics, employment increase and upswing business innovations are ought to boost-up the availability and usage of credit cards globally.
Mobile and Online payment modes are providing fresh consumer treatment
Mobile payments had reached a market of $35 billion worldwide and it is only expected to get better upto 2017. However, the functioning of physical credit cards is going down as most things are turning online. Financial institutions and experts from the industry are already predicting a time when there will be no physical credit cards, cash and cheques in the nearing future.
Co-branded of Credit Cards is working well
Alike many business industries the working together plan is proving good in the credit card industry as well. Due to the immense competition; credit cards companies have joined hands and are looking to attract new users as much as possible. Pooling in millennials is the big strategy which is been utilized.
For extended business, co-branded credit card companies are pouring in heavy discounts, offers and pay -backs rewards.
The co-branded credit card industry according to a research report sliced $809 billion last year with Visa grabbing the biggest pie at 47% followed by Master Card and American Express at 30% and 23% respectively.
Co-branded players are working towards pulling in more of young clients whereas brand loyalty in any industry is rare commodity today.