New York, June 22, 2021 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Debit Card Global Market Report 2021: COVID-19 Impact and Recovery To 2030” – https://www.reportlinker.com/p06097042/?utm_source=GNW
The global debit card market is expected to grow from $91.37 billion in 2020 to $94.08 billion in 2021 at a compound annual growth rate (CAGR) of 3%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $97.92 billion in 2025 at a CAGR of 1%.
The debit card market consists of sales of debit card services by entities (organizations, sole traders, and partnerships) that are engaged in storing, processing, and transmitting payment card data.Debit cards are payment cards that are linked directly to a customer’s bank account and can be used to make purchases and withdraw cash.
Debit cards usually have daily purchase and cash withdrawal limits and transactions made via these cards appear on the accountholder’s bank statement each month.This market excludes cash withdrawals through a cash dispenser.
Only goods and services traded between entities or sold to end consumers are included.
The debit card market covered in this report is segmented by card type into classic, signature, platinum, gold, by a service provider into visa, matercard, rupay, others, by application into commercial, bank, shopping, others.
The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The universal presence of mobile has increased the use of mobile payments and wallets which are expected to restrain the debit card market growth.Mobile wallet refers to a payment service through which payments could be received or sent using mobile.
According to a Forbes article published in March 2020, mobile payments in the USA are expected to exceed $130 billion in 2020 from $69.8 billion in 2018. Most of the mobile wallets have built-in security such as fingerprint touch ID, six-digit password, and other features that reduce the risk of fraud. Mobile wallets like Apple Pay, Samsung Pay, and Google Wallet are coming with advanced features of store checkout, where the customer just needs to take his phone close to the merchant’s NFC enabled point of sale. Ease of transaction and more safety features in the mobile wallet will increase its use, restricting the growth of other payment modes including debit cards thus restraining its market growth.
In March 2019, MasterCard, a USA-based financial services company acquired Ethoca Limited, a fintech company for an undisclosed amount.The acquisition is expected to help merchants and card issuers to collaborate for identifying and resolving fraud in digital commerce.
Ethoca Limited will strengthen MasterCard’s multi-layered cyber strategy and provide its customers with better checkout every time.MasterCard intends to combine Ethoca Limited with its current security activities, data insights, and AI solutions.
Ethoca Limited is a Canada-based global network of card issuers and merchants that provides intelligence and technology solutions empowering businesses to prevent fraud and improving customer experience.
Reduction in the use of cash following various factors contributed to the growth of the debit card market.Various institutional bodies and governments are trying to minimize the use of cash as cashless transactions reduce the risk of crime and money laundering, lessen tax evasion, and reduces transaction costs for businesses.
For instance, in March 2018, the government of Israel gave final approval for the Minimizing Use of Cash Bill, 5778-2018, thereby prohibiting the citizens from paying an amount beyond the specified limit in cash. Moreover, according to the 2019 Federal Reserve Payments Study, the total number of card payments (credit and debit) represented 75.3% of total core noncash payments in 2018. Prepaid and non-prepaid debit cards were used almost twice as often as credit cards in 2018. The COVID-19 pandemic too has brought a significant reduction in the use of cash. In 2020, a bulletin released by the Bank for International Settlements, advisor to central banks across the world, stated – the pandemic would help gain momentum for cash fewer payments around the world. Thus, reduced use of cash and the ongoing trend of digital payments is expected to drive the debit card market.
Cryptocurrency debit card is a new trend in the cards industry.Crypto debit cards act as an efficient bridge between the existing financial systems and the crypto world.
They offer instant purchasing power from bitcoin or other cryptocurrencies. According to a cards and payments industry report published by Infosys, the cryptocurrency market is expected to reach $1.4 billion by 2024, growing at 6.2% annually. Crypto backed debit cards allow cardholders to make payments and withdrawal of fiat currency from ATM, similar to debit cards linked to bank accounts. Major card networks such as MasterCard, Amex, and Visa are focusing on corporate payments with the use of blockchain. Revolut, a UK-based start-up offers the metal card with the MasterCard logo and access to 5 cryptocurrencies and 150 fiat currencies. Moreover, in October 2020, Coinbase launched its cryptocurrency Visa debit card in the USA, which allows customers to spend cryptocurrency anywhere Visa cards are accepted. Increasing acceptance of crypto cards, no foreign exchange fees, access to fiat and crypto-assets with a single card, and cashback rewards are some factors that will support crypto debit card market growth.
The countries covered in the market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.
Read the full report: https://www.reportlinker.com/p06097042/?utm_source=GNW
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