Global Debit Card Market Report (2021 to 2030) - COVID-19 Impact and Recovery - ResearchAndMarkets.com
The "Debit Card Global Market Report 2021: COVID-19 Impact and Recovery to 2030" report has been added to ResearchAndMarkets.com's offering.
This report provides strategists, marketers and senior management with the critical information they need to assess the global debit card market as it emerges from the COVID-19 shut down.
The global debit card market is expected to grow from $91.37 billion in 2020 to $94.08 billion in 2021 at a compound annual growth rate (CAGR) of 3%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $97.92 billion in 2025 at a CAGR of 1%.
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The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
Reduction in the use of cash following various factors contributed to the growth of the debit card market. Various institutional bodies and governments are trying to minimize the use of cash as cashless transactions reduce the risk of crime and money laundering, lessen tax evasion, and reduces transaction costs for businesses. For instance, in March 2018, the government of Israel gave final approval for the Minimizing Use of Cash Bill, 5778-2018, thereby prohibiting the citizens from paying an amount beyond the specified limit in cash. Moreover, according to the 2019 Federal Reserve Payments Study, the total number of card payments (credit and debit) represented 75.3% of total core noncash payments in 2018. Prepaid and non-prepaid debit cards were used almost twice as often as credit cards in 2018. The COVID-19 pandemic too has brought a significant reduction in the use of cash. In 2020, a bulletin released by the Bank for International Settlements, advisor to central banks across the world, stated - the pandemic would help gain momentum for cash fewer payments around the world. Thus, reduced use of cash and the ongoing trend of digital payments is expected to drive the debit card market.
Cryptocurrency debit card is a new trend in the cards industry. Crypto debit cards act as an efficient bridge between the existing financial systems and the crypto world. They offer instant purchasing power from bitcoin or other cryptocurrencies. According to a cards and payments industry report published by Infosys (News - Alert), the cryptocurrency market is expected to reach $1.4 billion by 2024, growing at 6.2% annually. Crypto backed debit cards allow cardholders to make payments and withdrawal of fiat currency from ATM, similar to debit cards linked to bank accounts. Major card networks such as MasterCard (News - Alert), Amex, and Visa are focusing on corporate payments with the use of blockchain. Revolut, a UK-based start-up, offers the metal card with the MasterCard logo and access to 5 cryptocurrencies and 150 fiat currencies. Moreover, in October 2020, Coinbase launched its cryptocurrency Visa debit card in the USA, which allows customers to spend cryptocurrency anywhere Visa cards are accepted. Increasing acceptance of crypto cards, no foreign exchange fees, access to fiat and crypto-assets with a single card, and cashback rewards are some factors that will support crypto debit card market growth.
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