Issue One: North America
Company case studies: PayPal, American Express
The credit cards industry in North America is mostly about the US, which is the largest and most diverse credit cards market as well as the biggest fintech arena in the world. Credit cards spend in the US has again reached a new peak – the latest Federal Reserve data for Q3 2018 shows total receivables are now more than $900 billion – of which around $480 billion is revolving debt. The total credit card limit is now more than $3.7 trillion. Credit card usage always shows a seasonal spike at the end of the year holiday season. We estimate to see a 12 to 15% increase in credit card usage over last year. A large portion of the credit card spend is now moving to eCommerce spend. The share of credit cards out of the total billed volumes on all types of cards was around 55% in 2017 – up from 54% in 2016. Given the current market conditions, the share of credit cards is expected to remain at this level for the next five years.