Credit Card Payments: Emergence of Online Shopping to Drive Demand
9 May 2022
Credit Card payments are gaining immense traction in various countries across the globe, owing to the increase in the standard of living among people and significant surge in the demand for cashless alternatives among people. Most of the people these days have left behind the conventional mode of transaction and adapted to the credit cards. These cards act as a seamless and effortless alternative to carrying cash all the time. Thus, the popularity of credit cards is expected to expand rapidly among people, owing to its great deal of convenience.
On the other hand, there has been a remarkable surge in the internet penetration across the globe, especially during the pandemic. More and more people around the world were increasingly indulged in the usage of internet. Be it attending online classes, watching videos on OTT platforms, or scrolling on different social media platforms. This is mainly due to the occurrence of lockdowns in various countries across the globe. Thus, the demand for credit card payments subsequently increased, owing to the availability of appropriate cashless alternative through which online payments can me made.
People subscribed to various OTT platforms during the pandemic to stream personalized content on some of the top platforms such as Netflix, Prime Video, Sony Liv, Disney+ Hotstar, and others. People streamed high-quality content on these OTT platforms by seamlessly paying through credit cards. Moreover, there has been a significant growth in the online shopping among people across the globe. The growing internet penetration across the globe is paving the way for seamless online shopping for customers in every aspect. Be it fashion, furniture, home appliances, smart phones, laptops, smart watches, earphones, groceries, books, toys, or pharmaceutical products. Thus, people tend to link their credit card details with the e-commerce platforms to buy any item seamlessly with the help of their mobile application or website.
E-commerce platforms are linked with particular banks that tend to provide extra discount to the customers that use their credit cards for payments. Hence, credit card holders get massive rewards and discounts on every purchases. These factors are expected to drive the demand for credit card payments in the coming years. Technological advancements such as extensive use of blockchain for enhanced security are expected to offer lucrative opportunities for the growth of the global credit card payments market. According to the report published by Allied Market Research, the global credit card payments market is anticipated to reach $263.47 billion by 2028, growing at a CAGR of 8.5% from 2021 to 2028.
Numerous players of the market are receiving massive funding to offer their unique products and offerings to the people. For instance, Zeta, a modern banking technology company, received a funding of $30 million from MasterCard, and a clutch of other investors in a round of strategic funding. Zeta will have a five-year partnership with MasterCard, and both the parties are jointly set to launch credit cards on Zeta’s credit processing stack. Thus, these remarkable trends significantly contribute to the growth in the demand for credit card payments among people across the globe.
Chief editor of review team at FinancesOnline
Chief editor of review team at FinancesOnline Alex Hillsberg is an expert in the area of B2B and SaaS related products. He has worked for several B2B startups in the past and gathered a lot of first hand knowledge about the industry during that time.