5 Trends Shaping Credit Card Industry

Posted by Linda Hudson on December 12th, 2017

Credit card industry is going through a sea-change. On one side many new technologies have cropped up and are changing the way people spend money.  There is a significant rise in the number of alternative payment systems, and there is a significant rise in the number of the providers as well. On the branding front, you may find more and more co-branded credit cards which are an attraction amongst millennials. More and more small businesses are using the credit cards more than ever, and it has created newer opportunities. Let’s discuss some trends that are shaping the industry:

1-Metal Credit Cards: New Status Symbol

Yes, use of metal isn’t just limited to the rings, pocket change, and jewelry. In high-end credit card segment, there have been many design changes that have taken place. They are minimalist and have almost no writing or numbers on their front. Instead of plastic, you’ll find metal credit card gradually making inroads. They have become a new status symbol for consumers who like their travel rewards. Being a new trend, even the credit-card companies are reluctant to share the exact number of the credit card members they have.

2-Rise Of Mobile Payments

New payment methods are gaining ground quickly. With the number of smartphones on the rise, consumers are increasingly using mobile and alternative payment options. It is being touted that cash, checks, and credit cards may eventually become a history.

3-Small Business Card Market Is On The Rise

More and more credit card companies are focusing on the small businesses. It is indicated by the stat which puts the gross purchase value at more than five hundred billion. And there are many factors behind it. They are industry innovation, rising employment, and macroeconomic trends that indicate better growth.

4-Co-Branded Cards

As the competitions rise, it makes marketers think about how to remain ahead. And co-branded credit cards are a product of this competition. More and more companies are luring affluent customers with more rewards and many other deeper benefits. In fact, these cards are drawing the attention of the millennials, and it is visible by the purchase value as well.

5-Affluent Customers Are the Main Target

Affluent customers are the main target as they tend to use cards frequently, spend large amount and pay on time as well. They remain a key target market.

To Conclude

If a metal credit card has become a status symbol, co-branded cards are bringing more millennials to the folds of credit card companies.