Credit Cards Issuing: A Global Outlook
San Jose, California (PRWEB) January 16, 2012
Follow us on LinkedIn – Nothing was more daunting for the global credit cards market than the recent financial crisis which drove it into darkness for almost two years, beginning 2008. Although overall consumer spending shrank during the recession, the bigger problem to confront issuers was piling up of enormous amounts of bad debts. Customers could not make minimum payments due to continued unemployment leading to major losses for credit card companies and issuers. However, as global economies set into a state of recovery, more optimism is being witnessed in the approach of credit card issuers. Issuers are playing their cards safely and are being choosy about customers, eyeing only prime consumers, who spend more and who boast of stellar payment records. Innovation continues to be the key for finding success in the credit card market place where players compete fiercely for customers. Innovation in terms of offers, technological advancements and an attitude of always being alert and technically ready for leveraging new opportunities coming along go a long way in assuring continued success for credit card issuers. Some of the technological advancements that could shape the future of the industry, and which players in the market place are aggressively pursuing, are multifunction cards, contact less payments, and mobile payments.
Payment through phones is forecast to rise as a major trend over the coming years with rising popularity of smart phones. Wiggling out of the financial crisis, the market place has become more competitive than ever with players competing ever so fiercely for customers. Another factor making the market more intense is the fact that even though the negative impact of the crisis has almost come to an end, the borrowing power of credit card holders continues to be subdued mainly because of poor individual credit scores and tighter lending standards. However, even during the time of such an intense competition, customers are at the receiving end as interest rates continue to shoot upwards. The only respite here is for the first year of the account, credit card issuers are prohibited from making any hikes, as per the newly implemented regulations.
Over the next few years, accelerated growth is expected in the credit card markets of the emerging nations, driven by low penetration levels and rising middle class population and their household incomes. Most of these markets also exhibited resilience to the financial crisis of the recent years mainly because penetration levels were quite low to have any major impact. In the US, the CARD Act of 2009 seems to have had a mixed impact on the overall credit card industry. The caps imposed on late fees led to a drastic decline in credit card late fees. However, although the Act was successful in achieving its goal of making the credit card holder more aware of the cost of credit and protecting him against the unruly practices of issuing companies, the customer had to pay the price. On account of this forced transparency, the market in the US is now barely open for consumers with lower incomes and those with poor credit scorings. American Express, J.P.Morgan Chase, Bank of America and Citibank are the leading credit card issuers in the US.
The research report titled “Credit Cards Issuing: A Global Outlook” announced by Global Industry Analysts, Inc., provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report offers a bird’s eye view of the world credit card issuing market and identifies major trends, issues, challenges and growth drivers. Market discussions in the report are punctuated with a number of fact-rich market data tables. Also included is an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of credit card issuers worldwide.
For more details about this comprehensive industry report, please visit –
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
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