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Deep penetration and rise in electronic modes of payment due to reduction in physical cash flow in the market led to increase in the usage of financial cards. Technological innovations and advancements in banking and financial institutions have generated the availability of alternatives of cash. Therefore, this has led to rise in demand for alternatives of cash. Further, technological advancements in banking institutions along with analytical solutions in developing countries in the market led to high demand for cards and payment.
Acceptance of e-commerce and mobile technology has led to the convergence and integration of cashless payment. Contactless payment has been gaining popularity owing to probable opportunities and new technology. Radio frequency identification and near field technology are some of the new technologies that are expected to surge the demand for cards and payment. The demand for cards is paving the path for cashless economy. Privatization, industrialization, and globalization have further transformed the banking sector.
According to Business Research Insights, the global cards and payment market size was valued at USD 51.64 billion in 2020 and is projected to reach a valuation of USD 123.11 billion by 2027 with a CAGR of 13.2% over the forecast period. The market has leading players such as China UnionPay, Mastercard, Visa, American Express, JCB, and Discover
The market players have been adopting new partnership strategies for enhancing their brand image. For instance, in March 2022, ICICI Bank partnered with Emirates Skywards to launch Emirates Skywards ICICI Credit Card. This will allow customers to earn reward points called Skyward Miles for lifestyle and travel. ICICI Bank is one of the first banks to partner with Emirates Skywards. New partnership strategies and integration of new technologies can expand the customer reach and attract more customers to buy cards and opt for contactless payments.
Business Research Insights States Top 5 Cards and Payment Companies-
1. China UnionPay (China)
UnionPay or most commonly known as China UnionPay is a financial services provider based in China. It offers bank card services and card scheme in Mainland China. Started in 2002, UnionPay is an organization for the banking industry of China. It is located in Shanghai, China. The card can be used in over 180 countries and various regions of the world. The company offers online and mobile payments services. Some of UnionPay’s services are associated with American Express, Visa, or MasterCard outside of China.
2. Mastercard Inc. (U.S.)
Mastercard Inc. known by its style as MasterCard till 2016 and Mastercard since 2016 is an American financial services company that serves on multinational level. The company was started in 1966 as Interbank Card Association and MasterCard from 1978. It sells its credit cards and prepaid debit cards. The company was founded by Wells Fargo, First Interstate Bancorp, Crocker National Bank, and Bank of California. Now, the company finds its main office in New York, U.S. The company employs 24,000 people as of 2021.
3. Visa Inc. (U.S.)
Visa Inc., commonly goes by the name of VISA, is an American multinational financial service provider. VISA is termed as one of the most valuable companies in the world. The company provide credit cards, debit cards, and prepaid cards. It also facilitates electronic fund transfer globally. It doesn’t issue cards or extend the credit. The company was started as a part of the Bank of America Credit card program in 1958.
4. Discover (U.S.)
Discover Financial Services is an American financial services company that runs Discover Bank. The company is located in Riverwood, Illinois. It offers home equity loans, student loans, personal loans, credit cards, and saving accounts. It was started in 1985 as a subsidiary of Sears and now has around 50 million card holders.
5. American Express Company (U.S.)
American Express Company, also known as Amex, is a U.S-based multinational corporation that specializes in payment card services. The company is headquartered in Lower Manhattan, New York City, U.S. It was founded in 1850 by Henry Wells, William Fargo, and John Butterfield. It is well known for traveler’s checks, credit cards, and charge cards. The company is owned by Berkshire Hathaway.
Virtual Cards and Payment to Pave a Positive Pathway
As the market is growing and prospering, increasing the pathway for the cards and payment industry is set to be characterized by contactless payment. Virtual cards and QR code payments have been quite the traction as consumers have started preferring cashless payment. A virtual card is something that can be stored in any user’s phone and can be used to make contactless payment with their own unique card number, expiration date, and CV number. It is anticipated to put a positive spin in digitalization and cashless payments.