A mainstay in consumers’ wallets since the late 1950s, the credit card has undergone a number of transformations, from cardboard to plastic and from chip-enabled to the rise of digital, contactless payments. 

Since its inception, the credit card has allowed consumers to make purchases without the need to pay up front. 

But consumer reliance on credit cards has a downside. In times of economic uncertainty, credit card use contributes to rising consumer credit card debt, as more consumers turn to credit lines to combat inflation and make ends meet. 

In 2024, nearly $12 trillion in purchases will be made via payment networks, according to an August 2023 EMARKETER forecast. Payment networks, per EMARKETER’s definition, include personal, corporate, and private label credit cards, as well as debit cards, gift cards, and more. 

total card network transaction value
A chart showing the total US card network transaction value between 2021 and 2025. (Subscribers only)

In this guide, we explore credit card industry trends and usage, the digital transformation of credit cards, and key players in the space. 

While credit card adoption remains strong, the industry has been impacted by high inflation, regulatory pressures, and changing consumer spending behaviors. Here are a few key credit card trends financial marketers should pay attention to.

How consumers view credit cards varies by generation 

Gen Z’s spending power has increased with age. In 2024, there will be nearly 50 million Gen Z digital buyers in the US, according to a November 2023 EMARKETER forecast. 

While not all Gen Zers want to embrace traditional credit cards, Morning Consult found that 63% of Gen Z adults have at least one credit card, and 30% have credit card debt as a result. 

Although Gen Z holds the least amount of credit card debt of any generation, Credit Karma found that the average Gen Zer’s balance totaled $3,328 in Q2 2023.  

Gen Zers are not alone in juggling credit card debt. 

Nearly 70% of all US adults are credit card users with at least one card, and with that 40% say they have debt associated with those accounts, according to a March 2023 Morning Consult survey. 

Baby boomers (76%) are more likely to have at least one credit card account, followed by millennials (70%) and Gen Xers (63%). However, all three generations’ credit card debt hoovers around the 40% average. 

us adults who own at least one credit card vs those who also have credit card debt
A chart showing US adults who own at least one credit card versus those who also have credit card debt, by generation, February 2023.

US household credit card debit reached $1.08 trillion in Q3 2023, a 4.7%—or $48 billion—increase from the quarter prior, per the Federal Reserve Bank of New York’s Quarterly Report on Household Debt and Credit. 

With credit card debt stuck at record highs (the average interest rate for a credit card in Q3 2023 topped 21.2%, the highest rate since the Federal Reserve began tracking this figure 30 years ago, according to LendingTree), consumers are struggling to repay what they owe. 

During the early days of the COVID-19 pandemic, many consumers were able to pay off record amounts of debt. Inflation, however, has caused this behavior to revert as household budgets tighten. 

Credit card network digital advertising budgets are rising

The payments and money movement industry, which includes credit and debit cards, is expected to spend $4.49 billion on digital advertising in 2024, up 14.2% compared with 2023, per a December 2023 EMARKETER forecast.

To court consumers at a time when debt is high and repayment is a stressor for many, credit issuers should consider promotional campaigns that emphasize the value and low cost of their cards. 

payments and money movement industry digital ad spend
A forecast chart showing the US payments and money movement industry’s digital ad spend between 2021 and 2025. (Subscribers only) 

Middle-income consumers, who need more value from their credit cards, for example, are attracted to providers’ lower-tier and nonpremium card options. Compared with premium cards, like American Express’ Platinum Card with its hefty $695 annual fee, lower-tier and nonpremium cards are appealing because they have manageable yearly fees, or none at all. 

To meet the needs of consumers whose disposable income has been hit the hardest by record-high inflation, credit card marketers can:

  • Create awareness campaigns that emphasize affordable financing, such as low introductory rates 
  • Highlight everyday value, like cash back, with rewards messaging 
  • Incentivize rewards for essential purchases, including fuel and groceries

Gen Z’s digital behavior has been a challenge for credit card marketers because Gen Zers are often less susceptible to awareness-building campaigns. 

To reach prospective Gen Zers, marketers should: 

  • Emphasize customization and personalized payment flexibility  
  • Build affinity by aligning cards with the generation’s interests or social causes they support
  • Strengthen their marketing presence on TikTok to engage with Gen Z  

Regulatory pressures could increase

As credit card issuers work to engage cost-conscious consumers and hard-to-reach Gen Zers, they’re also up against regulations that will impact profits. 

Regulators will scrutinize consumer fees, consumer interest rates, and merchant interchange—or “swipe”—fees.  

EMARKETER analysts believe issuers will need to be mindful of regulations that require transparency to help consumers switch to cards with better service or terms and encourage competition between primary card issuers.  

Late fee regulations, as well as a proposed swipe fee legislation and Consumer Financial Protection Bureau interest rate security, also present longer-term threats to card issuers’ profitability. 

Despite being a popular perk enjoyed by consumers, the US Congress introduced legislation known as the Credit Card Competition Act (CCCA) that would seemingly dismantle credit card rewards programs. 

Reintroduced in June 2023, after being initially voted down in 2022, the CCCA would require banks to give merchants more choices when choosing a payment network for processing card transactions. As it stands, merchants—particularly small businesses—find the interchange fees of 1% to 3% of a given transaction to be costly. CCCA supporters believe that if merchants could choose a payment network with lower processing fees, the additional cost would not be passed onto the consumer. 

Rewards card programs, however, are funded partially by the interchange fees paid by merchants. Without the swipe fee, the perks consumers have come to rely on and expect may dry up. In response, pro-credit card groups have a seven-figure national advertising campaign underway on streaming platforms like Hulu and Roku, and social platforms including YouTube, Reddit, and more. The effort culminated in a Super Bowl commercial in February 2024.  

Innovation in digital payments  

The convenience of credit card payments has also supported ecommerce growth. By 2024, EMARKETER estimates that US consumers will spend $1.252 trillion on retail ecommerce, up 9.3% YoY, according to a November 2023 EMARKETER forecast. 

Ecommerce 

As of December 2023, when making a digital purchase, US consumers are most likely to pay by credit (70%) or debit card (60%), per an EMARKETER and Bizrate Insights survey. 

which payment methods have us digital buyers used to make digital purchases?
A chart showing which payment methods US digital buyers have used to make digital purchases, February 2023 to December 2023. (Subscribers only)

The same survey named PayPal (43%) as the third-most likely way consumers pay for goods and services online. 

Used by over 90 million people, PayPal, which syncs to a consumer’s bank account, allows for seamless payments because the need to enter debit or credit card information for each transaction is eliminated. With PayPal, consumers’ payment information is stored and securely shared with merchants online.  

While predominantly used online, PayPal is increasingly being accepted at physical points of sale via its PayPal credit card and tap-to-pay options through integrations with digital wallets like Apple Pay.

Buy now, pay later 

As consumers seek credit card alternatives to avoid piling on more debt, buy now, pay later (BNPL) has emerged as an attractive way to complete a purchase. 

Total BNPL spending in the US will grow 12.3% YoY in 2024 to $80.77 billion, according to a July 2023 EMARKETER forecast. 

Compared with credit cards, BNPL providers like Klarna, Afterpay, PayPal, and others offer lower or no-interest funding. BNPL purchases are paid down in predetermined installments over a set timeframe, rather than a subtotal that will incur monthly interest.  

Similar to credit cards, BNPL services encourage consumers to keep spending when they may not be financially able. 

reasons why us adults use deferred payment plans
A chart showing reasons why US adults use deferred payment plans, June 2023. (Subscribers only)

Online purchases made via BNPL grew 10% YoY in the first two months of 2023, after increasing 14% the year prior, per Adobe Analytics. The same report found that groceries’ share of BNPL orders grew 40%.

More consumers would be interested in using a BNPL service over a credit card if it offered more rewards, like cash back on gas or airline miles. Close to 40% of consumers polled in a PYMNTS-AWS survey said rewards would improve their satisfaction, as would better store availability (32.5%) and higher credit limits (32.1%).  

Digital wallets 

Credit cards have also been digitized as smartphones and increased connectivity have advanced to become part of consumers’ daily lives.  

Like its physical equivalent, digital wallets like Apple Pay or Google Pay hold users’ credit and debit cards, loyalty club cards, and, increasingly, event tickets, boarding passes, and identification on their smartphones. Payments are made by scanning, tapping, or swiping a mobile phone at the point of sale to complete a transaction. 

In 2024, proximity mobile payments are expected to be made by nearly 40% of the US population, according to a June 2023 EMARKETER forecast. Those 111.8 million users will spend an estimated $687.74 billion in 2024. 

By generation, millennials are most likely to use their smartphone to make a purchase. In 2024, 44.9 million millennials will use proximity mobile payments, per an April 2023 EMARKETER forecast. 

However, it is Gen Z that will continue to drive growth in this space. As the mobile-first generation grows into its financial prime, nearly 20 million Gen Zers will adopt proximity mobile payments by 2027 to reach 46.2 million users, per EMARKETER’s Gen Z Consumer Payment Habits report. 

Overall, as consumer comfort with making a purchase via their smartphones has risen, so have partnership opportunities. 

Since October 2023, PayPal and Venmo credit and debit cardholders have been able to add their physical card details to Apple Wallet. Integrating with PayPal will bring Apple more revenues through incremental fees, as well as valuable spending data. 

Connected cars

Similar to digital wallets, connected cars have also introduced consumers to new ways to use credit cards. 

Connected cars’ primary functions include in-car voice assistants and infotainment systems where drivers can access apps like maps, call, or text, and use media players like Spotify. 

Increasingly, connected cars are integrating commerce by enabling payment options for things like fuel and everyday purchases. The connected car payments industry is estimated to reach $600 billion by 2030, per Ptolemus data cited by Car IQ.  

In July 2023, Visa partnered with Car IQ Inc. to advance merchant payments for commercial cars. Drivers can use the Visa-integrated Car IQ Pay to pay for tolls, parking, and more without a physical card. 

Mercedes-Benz added Mastercard to its in-car biometric payments offering in Germany. Introduced in 2023, Mercedes pay+, a fingerprint sensor in the car, lets drivers pay for fuel via their Mastercard debit or credit card. 

The in-car payments space is heating up as more players look to capitalize on the potential for first-party data. In 2023, Stripe partnered with BMW and Hyundai launched Hyundai Pay, while brands like Domino’s looked to connected cars for commerce.  

In-car payments volume is forecast to reach over 4.7 billion transactions globally by 2026, up from 87 million in 2021, per Juniper Research. 

Credit card marketing strategies

Over 25% of US consumers plan to add a new credit card to their wallet in 2024, a CardRates survey found. As a result, credit issuers are spending to advertise their card options. 

Thanks to stable account openings, ad spend for the payments sector is expected to grow in 2024. EMARKETER also forecasts that 34.8 million new US credit card accounts will be opened by individuals via a web browser or mobile app in 2024. The total figure is considerably higher when accounts opened in-person or over the phone are factored in.   

To acquire new users and demonstrate credit card value, the US payments industry will spend $4.49 billion in 2024, an increase of 14.2% YoY, according to EMARKETER’s December 2023 forecast. 

Acquisition strategies

Marketers are embracing innovative acquisition strategies that appeal to new and prospective cardholders to differentiate card offerings from peers in the space. 

  • Credit card subscription models. Similar to any subscription where a fee is paid in exchange for a service, credit card subscriptions see the user pay a set monthly fee in return for a line of credit. This model eliminates interest rate increases while helping users’ budgets and building their credit responsibly. 
  • Net-worth analysis tools. For low-risk cardholders, tools that analyze net worth are attractive for both the lender and consumer. The lender gains access to and can track cardholders’ net-worth data. The consumer can use the wealth management tool to track their net worth and manage spending on investments or mortgages, for example.
  • Seamless integration with digital wallets. To increase appeal, especially among younger prospects, marketers are demonstrating how their virtual credit cards fit into the digital wallet ecosystem. In addition to mobile proximity payments, credit card integrations include smart receipts (stored and searchable in-wallet), order tracking, and financial management tools within a preferred digital wallet. 

However, as account openings slow down and tighter credit limits begin to weigh on the industry, eMarekter forecasts that ad spend growth will stagnate by 2025. In response, marketers should also explore higher-value advertising channels to reach a wider audience of prospects:

  • Connected TV (CTV). Marketers can reach broad audiences with CTV ads. US adults will spend 2 hours, 16 minutes per day viewing CTV content, per EMARKETER’s February 2024 forecast. Since credit card marketers are very familiar with traditional TV advertising, crossing into CTV is a logical next step as consumer behavior shifts. 
  • Content creators. Some 76% of Gen Zers seek financial education from creators on platforms like TikTok, YouTube, and Reddit, a September 2023 WallStreetZen survey found. Working with creators on these social media platforms can be key to building positive associations with young consumers as their finances mature. It can also build brand trust by dispelling misinformation shared by unvetted financial influencers. 

Other common credit card marketing strategies

In addition to innovations in digital-first acquisition and advertising strategies, traditional elements associated with credit cards—like introductory offers and member perks—remain effective ways to encourage consumers to open or maintain an account.

Credit scores

As FICO credit scores decline due to payment delinquencies, credit card issuers are introducing cards that can help build consumers’ credit. 

In October 2023, Experian launched the Smart Money debit card and digital checking account. While tools that monitor credit scores without penalty are a common credit card feature, the Smart Money card is designed to boost the users’ credit score. 

Experian’s Smart Money offering is integrated with Experian Boost, which uses utility bills, rent, and other payments to build an Experian credit file and potentially raise consumers’ FICO scores. 

A perk of the debit card is that it helps build credit without building debt, and encourages financial inclusion. Some 19% of US consumers—predominately people of color and immigrants—are credit invisible, per Experian.

Balance transfers

To attract new users, or to encourage existing cardholders to graduate to a higher credit card tier, marketers promote balance transfer programs. Often, these programs reallocate an existing balance from one card to another card with a lower interest rate, or to a completely new credit issuer. 

As US card balances hit record highs, no-fee balance transfers are attractive offers to offset high monthly payments. 

Credit card marketers can devise awareness campaigns with messaging that touts affordable financing through low introductory rates and balance transfers. 

cash back credit card features most valuable to us consumers
A chart showing cash-back credit card features that are most valuable to US consumers, July 2023. (Subscribers only)

Rewards card 

Nearly half (46%) of US consumers feel that credit cards that offer rewards are valuable, according to EMARKETER’s July 2023 benchmark data. 

Rewards messaging centers on everyday value for card members, such as cash back on inflation-affected product categories like gas or groceries. Other reward types include cash rewards eligible for direct deposit and points toward airline miles.  

Credit card marketers should make redeeming rewards easy to avoid dissatisfaction. 

In fact, 31% of consumers reported difficulty redeeming rewards within the past 90 days, according to a report by i2c and PYMNTS Intelligence. The report also found that consumers are frustrated by the lack of clear reward details (22%) and lengthy redemption process (23%).

Interest rates

When considering opening a new credit card, 30% of US consumers see value in cards with 0% introductory interest rates, according to EMARKETER’s July 2023 benchmark data. 

Having the option to defer interest rates for a certain period of time, often 12 or 24 months, is appealing for consumers using the card for big purchases like furniture or home appliances. 

Communicating a low or 0% interest rate, even if temporary and contingent on sign-up, can attract consumers hoping to better manage existing debt. Cards with promotional rates provide a window of opportunity to pay down what’s owed without added interest.  

Credit card and payment networks you need to know

Almost everyone knows the four largest credit card companies: Visa, Mastercard, American Express, and Discover.

But the list of credit card issuers and financial institution networks extends well beyond those four heavyweights, as there are dozens of other credit card providers around the world that each have a piece of the pie.

Below, we’ve outlined each of these companies and identified their credit card network market share.

Visa

Visa remains the king of the mountain in the card network industry, for both commercial and consumer use. Visa, per an August 2023 EMARKETER forecast, is expected to post $6.445 trillion in total card transaction value in 2024, a 4.0% YoY increase.

Mastercard

Mastercard has secured the No. 2 spot among card networks. EMARKETER forecasts Mastercard’s 2024 transaction value will reach $2.727 billion. 

American Express

American Express remains a force among its peer card networks, even though it doesn’t have the sheer numbers of Visa or Mastercard. In 2024, American Express’ card transaction value will increase 8.9% YoY to $1.107 trillion, per an August 2023 EMARKETER forecast.

Discover

Discover remains in fourth place behind Visa, Mastercard, and American Express. Discover saw 16.0% YoY growth in its card transaction value between 2022 and 2023, when it exceeded $216 billion, but transaction value is leveling off. Per an EMARKETER forecast, in 2024, Discover transactions will value $219.78 billion, a 1.6% YoY increase from 2023. 

Interlink

Interlink is the electronic funds transfer division of Visa and it operates primarily within the US. But unlike a standard Visa check card purchase, Interlink purchase uses a PIN and can provide cash back from the merchant.

STAR

STAR was one of the first networks to focus on PIN debit, and First Data Corporation bought the company in 2003. The company prides itself on its innovation, such as the first processing of an envelope-less deposit at an ATM and the first real-time direct electronic check debit.

Accel

The Accel interbank network links more than 400,000 ATMs throughout all 50 states, along with a few US Air Force bases around the globe.

Credit unions

Many credit unions issue credit cards in the US. Credit unions are not-for-profit financial institutions, like banks, except they are owned by their members. 

Interac

Interac is the primary Canadian debit card system and flourishes there because other traditional providers, such as Visa and Mastercard, hardly provide cards in the country. There are over 59,000 automated teller machines that can be accessed through the Interac network in Canada, and over 450,000 merchant locations accepting Interac debit payments.

Visa ReadyLink

This service allows Visa cardholders to quickly add cash to their prepaid accounts. Retailers such as Safeway and 7-Eleven make ReadyLink available to customers.

PULSE

Discover owns PULSE, which operates an interbank network for more than 400,000 ATMs in the US and 1.8 million ATMs worldwide. According to Discover’s Q3 2023 earnings report, PULSE dollar volume was up 14% primarily driven by increased debit transaction volume.

JCB

Japan Credit Bureau (JCB) established itself in the Japanese credit card market and its cards are even used in over 20 different countries. In 2019, JCB teamed up with Santander, through which the bank will handle JCB acceptance for merchants in Spain.