Global Financial Cards Circulation Reaches 25.1 Billion in 2014

Market research company Euromonitor International released new global data on the consumer finance industry.

According to the data, 25.1 billion financial cards are currently in circulation globally with USD$56.7 billion dollars in transactions occurring in 2014. The US accounts for 3.4 billion cards and USD$10.1 billion in transactions. Emerging markets such as China and Brazil have 14.4 billion and 935 million cards in circulation with USD$14.7 billion and USD$1.7 billion in transactions respectively.

Euromonitor’s Head of Consumer Finance, Jonathan Fisher, identified major trends in cards, payments and lending:

  • The Case for Credit — From 2008-2013, global debit of 14% CAGR payment volume growth far surpassed that of credit at 7% CAGR. The economic downturn along with the previously unbanked population contributed to the disparity; however, Euromonitor expects the growth gap to evaporate. Some factors driving credit growth include rising middle class in emerging markets, pent-up demand in developed markets and influx of new users, primarily youth
  • Consumers in Motion — Due to urbanization or travel, consumers on-the-go tend to facilitate card spend. The massive urbanization trend exposes previously rural consumers to both acceptance and issuance already present in the city. Air travel also increases card spend due to its status as the preferred method of purchase
  • The Unbanked, Government and Prepaid — Government influence will spur adoption of financial cards among the unbanked population. Efforts to bundle payment capacity and ID cards will serve as key templates and government benefits, general purpose reloadable and transportation prepaid products will reap the benefits of these initiatives
  • Traditional Card Payment Structure — In the past, cash, lack of financial literacy and limited access were key international scheme competitors but going forward, disintermediation will surface as a threat facing the traditional landscape.
  • Mobile, Mobile, Mobile – Join our conversation about mobile commerce; log-on to Twitter October 28th at 11AM CT to chat with Senior Consumer Finance Analyst, Michelle Evans (@mevans14) and Euromonitor (@euromonitor) using the hashtag #EMIMobilePay

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