{"id":28541,"date":"2025-02-05T11:00:11","date_gmt":"2025-02-05T19:00:11","guid":{"rendered":"https:\/\/trc-parus.ru\/?p=28541"},"modified":"2025-02-05T11:00:13","modified_gmt":"2025-02-05T19:00:13","slug":"what-is-the-credit-card-business-and-who-makes-money-off-them","status":"publish","type":"post","link":"https:\/\/trc-parus.ru\/blog\/what-is-the-credit-card-business-and-who-makes-money-off-them\/","title":{"rendered":"What is the Credit Card Business and Who Makes Money Off Them"},"content":{"rendered":"\t\t
The credit card industry<\/a> is one of the most profitable and complex financial sectors in the world. Credit cards are used by billions of people for everyday transactions, allowing them to make purchases without needing immediate cash.\u00a0<\/p> However, behind every credit card swipe, there is a vast network of financial institutions, payment processors, and businesses that profit from the system. This article explores how the credit card business operates and who benefits financially from it.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t The credit card industry is a significant component of the financial sectors in Canada, the United States, and globally. Understanding the market size in these regions provides insight into consumer behavior, economic trends, and the financial health of households.<\/p> Canada<\/strong><\/p> In Canada, credit cards are a prevalent payment method. As of 2025, there are more than 100 million credit cards in circulation, with over 83.4% of Canadians aged 15 or older owning at least one credit card. This represents the highest percentage of credit card ownership globally.\u00a0<\/p> In 2023, credit cards accounted for 33% of total payments in Canada, surpassing debit cards, which stood at 30%. The Canadian card payment market experienced a growth of 7.7% in 2024, reaching a total value of CAD 1.2 trillion. Visa dominates the Canadian market with a 58% market share.<\/p> United States<\/strong><\/p> The United States has a substantial credit card market. As of the third quarter of 2024, Americans’ credit card debt reached $1.17 trillion, with balances increasing by $24 billion. Despite this rise, delinquency rates have slightly decreased to 8.8%, down from over 9% in the previous quarter, indicating potential relief as inflation eases.<\/p> In 2023, Americans charged $6.22 trillion to their Visa cards, making it the largest card processor in the United States. Mastercard followed, with consumers charging $2.59 trillion to their cards.<\/p> Global Perspective<\/strong><\/p> Globally, the credit card industry is dominated by a few major players. Visa, UnionPay, and Mastercard process 96.8% of all credit card transactions worldwide. Visa has 4.48 billion active cards globally, while Mastercard has 2.94 billion. The four major U.S. processors\u2014Visa, Mastercard, American Express, and Discover \u2014 facilitated $24.1 trillion in worldwide consumer transactions in 2023.<\/p> These statistics highlight the extensive reach and influence of credit cards in modern economies. While they offer convenience and purchasing power to consumers, the associated debt levels underscore the importance of responsible credit management and the need for financial literacy to navigate the complexities of credit usage.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t At its core, the credit card business involves lending money to consumers and processing payments between buyers and sellers. When a customer uses a credit card, the transaction goes through multiple steps before the merchant receives the payment. The key players in this process include:<\/p> Cardholders<\/strong> \u2013 Individuals or businesses that use credit cards for purchases.<\/p><\/li> Merchants<\/strong> \u2013 Businesses that accept credit card payments in exchange for goods and services.<\/p><\/li> Issuing Banks<\/strong> \u2013 Issuing banks<\/a> are financial institutions that provide credit cards to consumers and extend credit lines.<\/p><\/li> Acquiring Banks<\/strong> \u2013 Acquiring banks<\/a> that work with merchants to process credit card transactions.<\/p><\/li> Payment Networks<\/strong> \u2013 Payment network companies<\/a> such as Visa, Mastercard, American Express, and Discover that facilitate transactions between issuing and acquiring banks.<\/p><\/li>Credit Card Market Size, Trends, and Key Statistics in Canada, the U.S., and Globally<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
How the Credit Card Business Works<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t