Insider Intelligence forecasts US credit card transaction volume to hit $3.089 trillion in 2022, shaped by a few dominant trends
According to Insider Intelligence forecasts, credit card transaction volume in the US hit $3.089 trillion in 2022. The company also defined the key trends influencing the credit card industry.
To begin with, card issuers relied heavily on payment flexibility. High inflation forced customers to look for flexible payment solutions. To compete with popular BNPL providers, JPMorgan and TD Bank introduced new flexible payment offerings in 2022. Meanwhile, Visa and Mastercard also enhanced their own BNPL programs.
Additionally, many credit cards launched in 2022 focused on reward programs, as over half of customers consider rewards among the top product features when choosing the card to apply for. Besides ordinary cashback rewards, many payment players (e.g. Citi, JPMorgan) launched new travel perks to capitalize on renewed travel demand and encourage spending.
The next trend singled out by Insider Intelligence is the prevalence of digital co-branded credit cards. Thus, cards tied to digital platforms were issued by Mastercard. It partnered with Instacart and DoorDash. Amex, in its turn, cooperated with card startup Cardless to launch digital co-branded products.
Besides credit cards, issuers have launched various initiatives to cater to the needs of SMBs. Small businesses are an attractive segment for credit card issuers because they account for 99.9% of all US businesses. At the same time, the primary reason why small businesses fail is a lack of funding or working capital. Therefore, they are almost always looking for affordable credit solutions.