Credit Card Processing Industry Statistics 2024: Growth, Key Players & Industry Insights
Updated · Nov 26, 2024
The credit card processing industry, a cornerstone of global commerce, has never been more dynamic. As we step into 2024, innovations in payment technology, rising consumer expectations, and changes in regulatory landscapes are reshaping how transactions are processed across the world. From small businesses seeking affordable merchant services to tech giants leading the way in digital wallets and contactless payments, the ecosystem of credit card processing is evolving rapidly. This article dives into key statistics, trends, and insights defining this industry in 2024.
Editor’s Choice: Key Industry Milestones
- Global transaction value in the credit card processing market is expected to reach $14.8 trillion in 2024, driven by increased digital payment adoption.
- The US credit card transaction volume has surged by 12% year-over-year, reflecting consumer confidence and economic resilience.
- Visa, Mastercard, and American Express continue to dominate, collectively holding a 75% market share in global card transactions.
- Digital wallets now account for over 30% of online payment methods in the US, with this trend accelerating in other regions as well.
- Fraud prevention remains a priority, with $14 billion invested globally in security measures, up 18% from 2023.
- The buy now, pay later (BNPL) sector within card processing is projected to grow by 40% this year, attracting younger consumers.
- EMV chip card adoption has reached 100% compliance among major retailers in the US, enhancing payment security.
Credit Card Processing Industry Overview
The credit card processing industry plays a critical role in facilitating secure, seamless transactions worldwide. As payment trends shift toward digital solutions, industry growth is bolstered by innovations and consumer demand for convenience and security.
- Global revenue from credit card processing is projected to reach $32.9 billion in 2024, reflecting an 8.5% annual growth rate.
- The digital payment sector is expected to surpass $8.3 trillion in total transaction value, up 20% from 2023.
- Credit card use among US adults stands at 70%, with growth seen in younger demographics favoring rewards and cashback features.
- Credit card processing volume in Asia-Pacific has seen a 15% increase, driven by the rapid adoption of digital payment methods in urban markets.
- With rising mobile payment adoption, 63% of all in-person card payments in the US are contactless-enabled, up from 55% last year.
- The merchant services industry, encompassing credit card processing providers, has seen a 10% rise in new vendors, meeting the needs of small businesses and e-commerce platforms.
- Interchange fees collected by card networks are projected to exceed $80 billion in the US alone, up from $75 billion last year, influenced by increased spending.
| Metric | 2024 Value | Change from Previous Year |
| Global revenue from credit card processing | $32.9 billion | 8.5% increase |
| Digital payment transaction value | $8.3 trillion | 20% increase |
| Credit card use among US adults | 70% | |
| Credit card processing volume in Asia-Pacific | 15% increase | |
| Contactless payment adoption (US) | 63% | up from 55% |
| New vendors in merchant services | 10% increase | |
| US interchange fees collected | $80 billion | up from $75 billion |
Key Companies & Market Share Insights
The credit card processing landscape is led by several key players who continue to capture market share and drive innovation. Their growth is largely fueled by expanding digital capabilities, fraud prevention advancements, and partnerships with fintech companies.
- Visa and Mastercard together control over 70% of the market in terms of processed transaction volume.
- American Express maintains its niche with high-income customers, accounting for 12% of US credit card spending.
- Square has expanded its share in mobile payment processing, now handling 35% of all transactions among small to medium-sized businesses (SMBs) in the US.
- PayPal saw a 24% year-over-year increase in credit and debit card processing through its platform, driven by growth in e-commerce.
- Stripe, one of the fastest-growing processors globally, is projected to handle over $1 trillion in transactions by the end of 2024.
- FIS Global, an established processing provider, serves 20% of the top 100 financial institutions worldwide, cementing its place as a major player.
- Discover has expanded internationally, with 45% of its transactions now processed outside the US, targeting growth in Europe and Asia.
Credit Card Market Stats: Size & Growth
Understanding the market’s size and growth trends provides valuable insight into consumer behavior and the evolving demands on payment processing services.
- The global credit card market is valued at approximately $4.7 trillion as of 2024, growing at a compound annual growth rate (CAGR) of 6.8%.
- US credit card balances have reached $1.03 trillion, marking a 5.2% increase from 2023, driven by rising consumer spending and inflation.
- Contactless payment volume has grown by 30% globally, as consumers increasingly prefer the convenience and speed of tap-to-pay options.
- The average number of credit cards per consumer in the US is 2.6, with younger adults showing an upward trend in credit usage for building financial profiles.
- Credit card spending in e-commerce is projected to increase by 17% in 2024, reflecting the strong shift towards online shopping.
- The buy now, pay later (BNPL) integration with credit cards accounts for 10% of online credit card purchases, catering to a demand for flexible payment options.
- Debit card transactions continue to rise, accounting for 60% of non-cash payments worldwide, with substantial overlap in markets where credit and debit usage are balanced.
| Statistic | Value/Percentage |
| Global contactless payment volume growth | 30% |
| Projected increase in e-commerce credit card spending | 17% |
| BNPL share of online credit purchases | 10% |
| Global non-cash payments (Debit card share) | 60% |
Major Card Processing Companies
The credit card processing industry relies on a few major companies that provide reliable and innovative solutions, enabling millions of transactions worldwide every second. These companies are at the forefront of technological advancement and user experience improvement in payment systems.
- Visa Inc. remains the global leader in payment processing, facilitating $10 trillion in transactions worldwide in 2024 alone.
- Mastercard continues to grow in emerging markets, with transaction volumes up by 15% in Asia-Pacific, Africa, and Latin America.
- American Express (AmEx) focuses on high-value transactions, capturing 26% of US consumer spending despite holding a smaller market share.
- Square now leads the market in mobile and point-of-sale (POS) processing for small businesses, processing $150 billion in card transactions annually.
- Fiserv, a major player in financial technology solutions, processes over 12 billion transactions annually, supporting millions of merchants worldwide.
- Adyen, a global payments platform, saw 24% year-over-year growth, with a strong emphasis on digital payments in Europe.
- Stripe continues its rapid growth, serving millions of online businesses globally and integrating with popular e-commerce platforms to streamline payments.
Consumer Behavior and Payment Trends
In 2024, consumers have shown increased demand for flexible, fast, and secure payment options, shaping the payment processing industry in unexpected ways. Digital payment platforms, rewards, and personalization have become central to attracting new users.
- 56% of US consumers report using digital wallets like Apple Pay and Google Wallet for everyday purchases, reflecting a 20% increase over the past year.
- Contactless payments are the preferred method for 67% of Millennials, up from 58% in 2023, as convenience becomes a top priority.
- Rewards and cashback cards attract 80% of new credit card sign-ups in the US, especially among younger adults.
- Subscription services account for 32% of monthly credit card expenses for US consumers, indicating a shift toward recurring payments.
- The buy now, pay later (BNPL) market is expanding, with 45% of Gen Z and Millennials using BNPL options for online shopping.
- E-commerce transactions make up 21% of all credit card purchases, up from 18% last year, showing strong consumer preference for online shopping.
- Mobile app payments are on the rise, with 43% of consumers preferring to manage credit card payments via mobile applications instead of traditional methods.
| Consumer Behavior Trend | Percentage |
| Use of digital wallets (Apple Pay, Google Wallet) | 56% |
| Millennials preferring contactless payments | 67% |
| New credit card sign-ups (rewards and cashback) | 80% |
| Monthly credit card expenses on subscriptions | 32% |
| Gen Z & Millennials using BNPL for online shopping | 45% |
| E-commerce credit card purchases | 21% |
| Consumers using mobile apps for card payments | 43% |
Digital Capabilities and Innovation in Digital Payments
As technology advances, digital payments continue to evolve, with innovations that enhance convenience, security, and transaction speed, significantly impacting consumer and merchant behaviors alike.
- Biometric authentication is now used by 45% of consumers for payments, a 15% increase from last year, prioritizing security.
- Mobile POS systems are on the rise, accounting for $2.7 billion in transaction volume in the US alone, benefiting small and medium-sized enterprises.
- AI-driven fraud detection systems are helping reduce fraud losses by $8 billion annually across the payment industry.
- Real-time payments (RTP) are now available through major credit card networks, with 90% of transactions processed within seconds, enhancing customer satisfaction.
- The use of virtual cards has increased by 35% year-over-year, especially among businesses for secure online transactions.
- Cross-border payment innovations have made international transactions faster, with 60% of transactions completed instantly, benefiting global commerce.
- Digital currency payments are gaining traction, with 11% of businesses accepting cryptocurrency as a payment method, meeting the demand of crypto-savvy customers.
Debit and Credit Card Purchase Volume
The volume of purchases made using debit and credit cards has seen substantial growth in recent years. Consumer reliance on card-based payments is evident, and this trend shows no signs of slowing down.
- Total purchase volume on credit cards in the US reached $4.5 trillion in 2024, up from $4.1 trillion in 2023.
- Debit card purchases are increasing in popularity, with total spending volume expected to reach $3.6 trillion by year’s end.
- Business credit card usage has grown by 12%, with small businesses using credit cards for operating expenses and growth funding.
- ATM withdrawal frequency has declined by 20% as consumers increasingly rely on digital payments, showing a decline in cash dependency.
- Rewards card purchases constitute 60% of all credit card transactions, as consumers seek more value in every transaction.
- Groceries and online retail make up 35% of credit card spending, as consumers prioritize essential goods and online convenience.
- The US market leads with the highest credit card penetration, with 72% of consumers owning at least one credit card, indicating a highly engaged market.
Top Credit Card Issuers by Purchase Volume
The top credit card issuers by purchase volume represent the backbone of the card processing industry, as they drive innovation and service millions of cardholders across various spending categories.
- Chase leads the US market with $1.1 trillion in purchase volume, powered by popular products like the Chase Sapphire and Freedom cards.
- Bank of America holds a 19% market share in credit card purchase volume, largely driven by its rewards-based and co-branded cards.
- Citibank processes over $500 billion in purchases, benefiting from its extensive partnerships and global reach.
- Wells Fargo saw a 14% increase in purchase volume this year, following successful cardholder incentive programs.
- American Express remains a top choice for high-income consumers, with $800 billion in purchase volume, marking a 10% growth from 2023.
- Capital One expanded its market with $450 billion in purchase volume, boosted by competitive rewards offerings.
- Discover continues to see strong growth, with a 12% increase in purchase volume, focusing on cashback options and customer engagement.
Digital Currency and Payments
The integration of digital currency into payment systems marks a significant shift in consumer and business payment behaviors. Cryptocurrencies and stablecoins are making an impact, albeit cautiously, in the credit card processing industry.
- 11% of US consumers report using digital currency for purchases at least once, primarily through platforms like PayPal and Square.
- Stablecoins are becoming popular, with 5% of businesses utilizing them for cross-border payments, benefiting from their stability and lower transaction fees.
- Visa and Mastercard have launched pilot programs for cryptocurrency-backed credit cards, signaling broader acceptance of digital currencies.
- $2 billion worth of payments were processed in cryptocurrency in 2023, with Bitcoin, Ethereum, and Litecoin leading in transaction volume.
- Digital wallets that support cryptocurrency now account for 30% of mobile wallet users, as more consumers explore this option.
- Central bank digital currencies (CBDCs) are being tested by 18 countries, with China’s e-CNY leading in terms of adoption and transaction volume.
- International crypto payments have gained traction, with 45% of crypto users willing to transact across borders, driven by lower fees and faster processing times.
Online Payments and eCommerce in the USA
The surge in online shopping has transformed the payment processing industry, with eCommerce now a major contributor to credit card transaction volumes. Innovations in payment gateways and security measures have reinforced consumer confidence, further fueling growth.
- ECommerce sales in the US are expected to reach $1.1 trillion in 2024, accounting for over 21% of all retail sales.
- Credit cards remain the most popular payment method for online transactions, making up 44% of all eCommerce payments.
- Digital wallets like PayPal and Apple Pay now account for 32% of online payments, reflecting consumer preference for convenience and security.
- Subscription-based services contribute to 12% of total online payments in the US, a sector experiencing rapid growth as consumers shift to recurring services.
- The average order value (AOV) for credit card transactions in eCommerce is $105, a 7% increase from 2023.
- Buy now, pay later (BNPL) continues to rise in popularity for online shopping, with 16% of eCommerce shoppers opting for BNPL solutions.
- Mobile commerce (m-commerce) accounts for 39% of online sales, highlighting the growing influence of mobile-friendly payment platforms.
Processing Fees and Merchant Costs
Processing fees and associated costs remain a significant consideration for businesses in managing credit card payments. Changes in fee structures and industry trends influence the options available to merchants.
- Average credit card processing fees for small businesses in the US range from 1.5% to 3.5% per transaction, depending on the card type and processing model.
- Interchange fees make up the bulk of processing costs, with Visa and Mastercard interchange fees averaging 1.8% of each transaction.
- Merchant discount rates (MDRs) charged by acquiring banks average 2.3% in 2024, slightly higher than the 2.1% seen in 2023.
- Chargeback fees for disputed transactions cost merchants between $20 and $100 per incident, with online businesses facing higher costs due to fraud risks.
- Flat-rate processing models are popular among small businesses, with companies like Square charging a standard 2.6% + $0.10 per swipe transaction.
- Cross-border fees can add 1.5% to 3% on transactions involving foreign cards, impacting businesses with international customers.
- Alternative payment methods like ACH and digital wallets offer lower fees, often ranging from 0.5% to 1.5%, providing an economical choice for recurring payments.
Number of Merchants and Business Landscape
The landscape for merchants accepting credit cards is expanding as more businesses adopt cashless transactions to meet customer preferences and streamline operations.
- Over 10 million businesses in the US accept credit card payments, with 200,000 new merchants added annually.
- Small businesses make up 70% of US merchants accepting card payments, highlighting the accessibility of credit card processing solutions for SMBs.
- The retail sector represents the highest share of credit card transactions, with over 45% of all merchant credit card transactions occurring in retail.
- Restaurants and food services have seen a 30% increase in card payments, particularly through mobile and contactless options.
- Online-only businesses accepting card payments have grown by 25% in 2024, driven by the rise of eCommerce platforms and social commerce.
- Cash-only businesses have declined by 15% as consumers show a strong preference for digital payment methods.
- Loyalty programs linked to credit cards are a popular strategy, with 55% of merchants offering them to increase customer engagement and retention.
Security and Fraud Prevention Measures
With the rapid growth of digital payments, security, and fraud prevention measures have become crucial in protecting consumers and merchants from fraudulent transactions.
- Global fraud losses related to credit card transactions are projected to exceed $36 billion in 2024, with digital payments being a primary target.
- EMV chip technology has helped reduce in-person card fraud by 76% since its introduction, making transactions more secure.
- 3D Secure 2.0 adoption is on the rise, with 85% of US merchants implementing this authentication method for online purchases.
- Tokenization technology protects over 60% of mobile payments, creating a secure environment for digital transactions.
- Artificial intelligence (AI) in fraud prevention is helping companies detect suspicious patterns, reducing fraud losses by $11 billion annually.
- Biometric security, including fingerprint and facial recognition, is used by 30% of digital wallet users, adding a layer of protection for mobile transactions.
- Data encryption standards are maintained by 100% of major credit card processors, ensuring secure data storage and transmission for all transactions.
Recent Developments in Payment Regulations
As the credit card processing industry grows, so does regulatory oversight to protect consumers and maintain fair practices. 2024 brings several new regulatory changes affecting both consumers and businesses.
- The Durbin Amendment cap on debit card interchange fees was revised, setting a 2% limit on small-ticket debit transactions to benefit small businesses.
- PSD2 (Revised Payment Services Directive) compliance in the EU influences international merchants, emphasizing secure customer authentication for online transactions.
- Regulation Z, part of the Truth in Lending Act, requires more transparent disclosure of terms, fees, and interest rates on credit card offers in 2024.
- Cross-border payment regulations by the G20 aim to reduce fees and processing times, targeting a 75% reduction in cross-border payment costs by 2030.
- Data privacy laws such as the California Consumer Privacy Act (CCPA) enforce stringent controls on the collection, storage, and use of consumer data by payment processors.
- The US Federal Reserve has increased oversight on interchange fees, mandating more transparency and potentially leading to lower rates in the future.
- Anti-fraud regulations require all processors to implement strong security measures, with fines of up to $250,000 for non-compliance, protecting cardholders from fraud.
Conclusion
The credit card processing industry in 2024 is marked by unprecedented growth and change. Driven by consumer demand for convenience, enhanced security measures, and innovative technologies, the industry is navigating a digital transformation with agility. While major players like Visa, Mastercard, and Square continue to lead, advancements in digital currencies, contactless payments, and fraud prevention redefine the payment landscape. Merchants benefit from a growing array of payment options and tools, meeting the needs of a digital-savvy clientele while mitigating risks associated with fraud and regulatory complexities. As the industry adapts to new consumer behaviors and regulatory demands, its future will be shaped by both innovation and the continuous pursuit of security.
Sources
Barry Elad is a dedicated tech and finance enthusiast, passionate about making technology and fintech concepts accessible to everyone. He specializes in collecting key statistics and breaking down complex information, focusing on the benefits that software and financial tools bring to everyday life. Figuring out how software works and sharing its value with users is his favorite pastime. When he's not analyzing apps or programs, Barry enjoys creating healthy recipes, practicing yoga, meditating, and spending time in nature with his child. His mission is to simplify finance and tech insights to help people make informed decisions.
