|
The Changing Payments Landscape: Credit Card Profitability Faces Challenges from COVID-19 and Competition
Saturday, January 8, 2022
DUBLIN, Dec. 31, 2021 /PRNewswire/ -- The "Payments Industry Revenue Models in 2021 and Beyond" report has been added to ResearchAndMarkets.com's offering.
https://mma.prnewswire.com/media/539438/Research_and_Markets_Logo.jpg
As the world continues its uneven recovery from the global pandemic, the changes to countries, economies, businesses, and individuals that arose from the first lockdowns in 2020 continue to reveal themselves today.
The way people pay has seen major, if not unforeseen, transformation. The pandemic has accelerated the move away from cash towards digital payment solutions. This shift challenges traditional payment revenue models in a number of ways, including through convenient alternatives to card payments via digital wallets, payment network innovations, and simple, transparent substitutes for credit cards via buy now pay later apps.
This report discusses the existing revenue models in the payments market and evaluates the challenges they face from emerging technologies and business models. New solutions have the potential to allow merchants and customers to cut out a key part of the traditional payment loop, bypassing interchange fees, system fees, and service charges - with major consequences for revenues.
Report Scope:
-- Following a decade of strong growth, estimates place current global
payment revenues at around $2tn.
-- Two key revenue streams - interchange fees and merchant service charges
(MSCs), both specific to card-based transactions - account for around
half of payment revenue. Together they will see growth of 25% between
2020 and 2023, when their value will reach $1.2tn.
-- The pandemic has slashed the use of cash across many regions, although
in traditionally cash-dependent areas it will continue to dominate over
the short term.
-- While payment cards remain the dominant payment mechanism in Europe and
North America, the proportion of global transactions accounted for by
mobile wallets has increased rapidly. This trend will continue out to
2023, driven by especially strong usage in Asia Pacific and growing
adoption in the developed world.
Report Benefits:
-- Understand the payments value chain in full.
-- Find out where the growth opportunities are in the medium and long term.
-- Gain insight into coming regulatory changes that will affect payments
revenues.
-- Find out how mobile payments affect the established elements of the
value chain.
-- Learn where emerging technologies such as real-time payments and central
bank digital currencies will impact the payments value chain.
-- Understand how buy now pay later services threaten revenue streams in
the credit card market.
Key Topics Covered:
1. Executive Summary
1.1 Market overview
1.2 Key findings
1.3 Critical success factors
2. Payment Revenues in 2021: Market Overview
2.1 Revenue generated from payments totaled $2tn in 2020
2.2 The most commonly used payment methods and their costs
3. Social, Economic, and Political Changes are Impacting Payment Revenues
3.1 The impact of the pandemic continues to be felt, masking other key changes to the payments industry
3.2 COVID-19 has had long-term implications for the global payments landscape
3.3 Contactless limits were increased, encouraging more digital transactions
3.4 Mobile wallets are convenient, rewarding, and popular with younger customers
3.5 Businesses face fivefold fee increases when trading between the UK and Europe post-Brexit
3.6 Mastercard case could pave the way for further action against multilateral interchange fees
4. The Changing Payments Landscape: Regional Analysis
4.1 The payment mix varies around the world, and spotlights digital growth hotspots
5. Interchange and Merchant Service Charges are Key Revenue Streams
5.1 Global interchange income will reach $506bn in 2023f
5.2 Global MSC will reach $741bn in 2023f
5.3 New concepts and payment systems are emerging as an alternative to Visa and Mastercard
5.4 Open banking payment systems will account for at least 2 million transactions in 2021
6. Credit Card Profitability Faces Challenges from COVID-19 and Competition
6.1 Interest income was waning before the onset of the pandemic
6.2 Despite small changes, regional net credit loss remains relatively steady
6.3 Rollover rates in the UK have been affected by the pandemic
6.4 Substitution is another threat to traditional credit card providers
6.5 BNPL as a concept is growing globally
Companies Mentioned
-- PayPal
-- Klarna
-- Afterpay
-- Affirm
-- Visa
-- Mastercard
-- American Express
-- Apple
-- Facebook
-- Vyne
-- Plaid
-- TrueLayer
-- TIPS
-- MobilePay
-- Vipps
-- Amazon
For more information about this report visit https://www.researchandmarkets.com/r/y7f2pt
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
Media Contact:
Research and Markets
Laura Wood, Senior Manager
press@researchandmarkets.com
For E.S.T Office Hours Call +1-917-300-0470
For U.S./CAN Toll Free Call +1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
U.S. Fax: 646-607-1904
Fax (outside U.S.): +353-1-481-1716
View original content:https://www.prnewswire.com/news-releases/the-changing-payments-landscape-credit-card-profitability-faces-challenges-from-covid-19-and-competition-301452305.html
SOURCE Research and Markets
|
|
|
|
|
|
 |
The New Identity Theft Crisis: AI Scams, Child Victims, and Credit Damage Are All Spiking | Jan 22, 2026
|
|
AllSci Launches Hypothesis Publishing: A Seamless Way to Share, Connect, and Advance Scientific Ideas | Jan 22, 2026
|
|
Canadian Fintech Tuhk Inc., Founded by Ethoca and NuData Security Veterans, Raises US$6 Million Seed Round Led by FINTOP, with Lloyds Banking Group and Capital One Ventures | Jan 22, 2026
|
|
Fintech Startup BON Credit Secures $3.5 Million In Funding | Jan 22, 2026
|
|
Darwin CX Caps a Banner Year with AI Launch, Sold-Out Events, and Industry Book Launch | Jan 22, 2026
|
|
Nudge Security Unveils Industry's Most Comprehensive AI Security Governance Platform | Jan 22, 2026
|
|
PayDo Launches Unified Payment Infrastructure Suite for Digital Businesses | Jan 22, 2026
|
|
TSX Venture Exchange Market Data Now Available Across Over 40 Blockchains via Chainlink | Jan 22, 2026
|
|
IoTeX Publishes MiCA-Compliant Whitepaper for IOTX, Enabling EU-Wide Alignment Under the New Regulatory Framework | Jan 22, 2026
|
|
Paxos Selects Mesh To Enable Trusted Crypto Deposits | Jan 22, 2026
|
|
|
|
