Chipping away: Competition from pay later services has limited industry demand

The Credit Card Issuance industry has declined slightly over the past five years, largely due to a decrease in the number of credit card accounts that accrue interest. Banks and lenders have focused on attracting younger and lower income consumers over the past five years to prevent further declines. Credit card transactions have increased over the past five years, but the ratio of credit card debt to discretionary income has fallen and more households have deleveraged their financial position with respect to credit cards.Historically low interest rates have caused residential property prices to boom, further fuelling the industry's decline. Credit card interest rates have largely remained unchanged over the past five years despite cash-rate more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Banks and lenders have increased efforts to attract younger consumers to stem revenue declines
  • The big four banks have continued to dominate the industry due to their access to funding
  • Customer satisfaction is forecast to remain a key point of competition, boosting industry staff numbers
  • Industry Report - Industry Products Chapter

    Credit card issuers provide debt finance for purchases. Funds-transfer facilitators, such as Visa, MasterCard and American Express, provide the payment systems and infrastructure used to process transactions. Credit cards are the only product the industry offers. However, credit card features vary significantly and cater to the needs of different consumer groups.Balance transfer cardsA balance transfer card enables customers to transfer their existing credit card debt from one lender to another and repay it at a reduced interest rate (sometimes interest free for promotional offers) over a set period. The...purchase to read more.

    Additional Insights for the Credit Card Issuance Industry

    IBISWorld has determined the most important Key Success Factors for the Credit Card Issuance are:

  • Access to the latest available and most efficient technology and techniques
  • Having an extensive distribution/collection network
  • Management of a high-quality assets portfolio
  • IBISWorld analysts also discuss how external factors such as Household consumption expenditure and Consumer sentiment index in the Credit Card Issuance industry impact industry performance..

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    What's in this report

    What is the Credit Card Issuance Industry?

    The industry issues credit and charge cards to businesses and consumers. These cards provide users with a line of credit to use for purchases or cash advances. Credit card balances roll over month to month and can be repaid in full or by instalment. Charge card balances must be paid in full each month. The cards are issued by financial institutions rather than directly by Visa or MasterCard, which only provide the transaction processing networks.

    Industry Products
  • Balance transfer cards
  • Rewards cards
  • Low-interest cards
  • Low or no annual fee cards
  • Platinum and gold cards
  • Business cards
  • Industry Activities
  • Providing credit via a credit card
  • Providing credit via a charge card
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Household consumption expenditure
  • Consumer sentiment index
  • High income earners
  • National unemployment rate
  • Ratio of credit card debt to discretionary income

  • Current Performance
  • Revenue drivers
  • Contactless payment
  • Profitability and other trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Growth returns
  • Rising competition
  • Continued new technologies
  • Table: Credit Card Issuance Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Credit Card Issuance Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Building Societies
  • Credit Agencies
  • Credit Unions
  • Debt Collection
  • Foreign Banks
  • National and Regional Commercial Banks

  • Products & Services
  • Balance transfer cards
  • Low-interest cards
  • Platinum and gold cards
  • Rewards cards
  • Business cards
  • Low or no annual fee cards
  • Chart: Credit Card Issuance Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other consumers
  • Consumers aged 35 to 54
  • Businesses
  • Chart: Major Market Segmentation for the Credit Card Issuance Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Credit Card Issuance

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Credit Card Issuance Industry

  • Industry Globalization
    Commonwealth Bank of Australia, Westpac Banking Corporation, Australia and New Zealand Banking Group Limited, National Australia Bank Limited, Citigroup Pty Limited,
  • Table: Commonwealth Bank of Australia - financial performance
  • Table: Westpac Banking Corporation - financial performance
  • Table: Australia and New Zealand Banking Group Limited - financial performance
  • Table: National Australia Bank Limited - financial performance
  • Table: Citigroup Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Credit Card Issuance Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Credit Card Issuance Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Credit Limit
  • A limit on the amount of debt that can be accrued on a credit card, set by the credit card issuer and determined by the earning capacity and credit rating of the purchaser.
  • Credit Rating
  • A rating of an individual's or business's financial history, reflecting their ability to take on and service debt.
  • Four Major Banks
  • A term for the four largest domestic banks in Australia: Commonwealth Bank of Australia, Westpac, National Australia Bank and ANZ Bank.
  • Revolving Credit Balance
  • Balance outstanding on a credit card that is rolled over to the next month, where interest charges accrue over the period.
  • Tier 1 Capital
  • The most liquid form of capital, usually in the form of cash reserves and shareholders’ equity.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Credit Card Issuance market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
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    This report on Credit Card Issuance:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Credit Card Issuance market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Credit Card Issuance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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