80
81
CMSPI – IAC State of the Industry Report
CMSPI – IAC State of the Industry Report
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Prepay Prepaid card PostPay POS financing Others Digital Wallet
Debit Card Credit Card Cash on Delivery (CoD) Cash Buy now pay later (BNPL) Account-to-account (A2A)
Debit Volume Credit Volume Other Volume
E-commerce
POS
Graph 4.6 - Card Splits by Country (2023) 130
Graph 4.5 – Payment Methods by Transaction Value in Asia Pacific (2022) 129
Section 4.2 – Credit and Debit Cards around the World Cards continue to be the world’s major consumer payments method. However, beneath the surface there are several important nuances to card spending that we will explore here: how does credit card spend compare to debit card spend, and how does this differ by region? How does the credit/debit split affect merchants’ ability to drive competition (i.e. routing) between providers? In which countries does card spend not dominate payments?
Section 4.2.1 – Credit and Debit Cards in the Americas CREDIT AND DEBIT CARDS DOMINATE THE AMERICAS Credit cards continue to hold a prominent position as the first or second most preferred payment method by transaction value in various countries, notably in Canada, where incentives like rewards and credit history building drive 50% of POS and 42% of Ecommerce value (see Graph 4.3). In the U.S., credit card usage is widespread, with 82% of adults possessing at least one credit card in 2021. 131 While the pandemic initially saw a 5% decrease in outstanding credit balances as cardholders utilized stimulus payments, Q2 2023 witnessed a surge in cardholder credit card balances exceeding $1 trillion due to rising interest rates and the cost of goods and services. 132 Debit cards, following credit, maintain a strong position as a top two or three preferred payment method in the region. In the U.S., debit cards accounted for nearly 88 billion payments – approximately 56% of all card payments in the U.S. in 2021 and an 800% increase in debit
130 Euromonitor 131 World Bank Findex 2021. 132 https://www.gao.gov/blog/american-credit-card-debt-hits-new-record-whats-changed-post-pandemic#:~:- text=Credit%20cards%20are%20widely%20used,having%20more%20debt%20than%20others.
129 Worldpay Global Payments Report 2023
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