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Debit/ credit cards industry comprises companies/ banks globally that operate by issuing debit and credit cards to the banks customers for ease of access of payment for their various types of transactions. Globally, debit and credit cards have become synonymous with any working professional in any field and they require these types of modes or tools of accessing their accounts for transactions. A debit card is also called as a check card or bank card in many countries and they are connected to the card holder's bank account and they allow electronic access to the account. Debit cards are basically used to withdraw funds from their own account and credit cards allow a certain limit of credit fund issued by the bank on a certain amount of interest that the user must pay back. This industry is a part of the highly structured and organized banking industry and barriers to entry into this industry are moderate to high and they mostly entail with respect to securing distribution channels and building brand recognition.

There is a high level of competition in this industry and is mostly intense due to major players having significant resources and large and diversified customer bases. Since few years, especially since the global economic downturn. the industry is facing increased external competition from big financial institutions that have considerable branding and marketing power. And for new entrants, the circumstance and conditions after recession are such that they will need to invest heavily in marketing their products in order to generate demand and awareness and to alert consumers on where to purchase these cards. One of the advantages for big players is that the consumer-oriented marketing and advertising costs are comparatively high for this industry and may deter new entrants and they can easily maintain their competition on local scene as well. In today's generation of working class, the debit and credit cards have become so widespread that they have almost replaced checks and are even increasingly used in place of cash as they are convenient modes of transactions.Ìý Debit cards are used quite often to make purchases over the internet or via telephone, and in today's time, online, where e-commerce and electronic transaction has gone digital and allows much more safe and secure access and usability.Ìý

Debit/ Credit Cards Industry Current Trends

Globally debit and credit cards are used by majority of the bank account holders and there is a strong growth pattern seen in the way the cards have replaced cheques and cash exchange in the recent years. Apart from being one of the best sources to store and save the money for customers, the banks also allow convenience and ease of access to their accounts for customers and therefore credit and debit cards are more popular than ever before since banking system started. Ever since the global recession, the debit or credit cards growth has slowed down as opposed to the expected estimation of growth, and the recession hit the credit card industry particularly hard, with revenue contracting at an average annual rate of 4.5% to the value of $97.2 billion until 2013, but starting in 2013, the debit and credit industry is expected to experience positive growth, according to an estimated rate of 7.4% annually due to better financial strategies on spending, investment and budget planning.

Debit/ Credit Cards Industry Players

Major debit/ credit cards industry players include JP Morgan Chase, American Express and Capital One Financial Corp.