Credit cards, debit cards, and prepaid cards issued in the US initiated 104.41 billion purchase transactions in 2015, up 8.0%, according to The Nilson Report, the top trade journal covering the card and mobile payment industries.
US credit cards gain more share of spending by 2020
Spending for goods and services on those cards totaled $5.805 trillion, up 7.4% over 2014. By 2020, purchase volume is projected to reach $8.226 trillion.
“Credit, debit, and prepaid cards spending continues to grow faster than personal consumption expenditures in the US as card issuers and retailers provide incentives to move more spending onto payment cards,” said David Robertson, Publisher of The Nilson Report.
At the end of 2015, there were 6.26 billion credit, debit, and prepaid cards in circulation in the US. The number of cards in circulation is projected to reach 7.30 by 2020.
In 2015, when credit cards accounted for 53.47% of all spending and debit cards for 46.53%, Visa debit cards had the highest market share with 23.66% of all spending. Visa credit cards were second with a 23.15% share, followed by American Express credit cards (12.36%), Mastercard credit cards (11.24%), and Mastercard debit cards (9.99%).
By 2020, credit cards are expected to account for 56.67% of purchase volume. Visa credit cards are expected to have a greater share of purchase volume at 27.09% in 2020 than Visa debit cards at 22.49% followed by American Express credit cards with 11.56%, Mastercard credit cards with 11.35%, and Mastercard debit cards with 9.75%.
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