US credit card transaction volume hit $3.089 trillion in 2022
Let’s dive into some of the trends that influenced the industry in 2022
In order to compete with buy now pay later (BNPL) issuers like JP Morgan and TD Bank introduced new flexible payment offerings in 2022. Visa and Mastercard also ramped up their BNPL programs to grab a share of the $75.60 Billion BNPL Market in the US.
Consumers still choose which cards to apply based on the rewards they offer. Digital co-brand cards gained steam - Cards tied to digital platforms like instacard and DoorDash were introduced in 2022 and more co-branded cards are expected this next year.
Banks and card issuers tapped small business credit demand. Credit cards are the second most sought after form of financing for small businesses in the US. Banks and card issuers aside from issuing new cards for the sector, have also introduced small business credit access initiatives in 2022.
Travel Spending made a huge comeback in 2022.
International travel recovered about 60% of pre-pandemic levels between January and July 2022. This helped boost card volume for Visa and Mastercard and card issuers are launching new travel perks to capitalize on travel demand and encourage spending.
Source: Insider Intelligence's Payments Innovation Briefing