Global card spending reaches $42 trillion as Covid restrictions are eased
By Gaia Lamperti
As contactless usage continues to rise and consumer spending recovers after the height of the pandemic, card usage keeps growing and it looks like the new spending habits developed during the pandemic will persist.
New research by banking and retail technology intelligence company RBR shows that worldwide expenditure on payment cards reached over $42 trillion in 2021, representing a rise of 23%. This rapid increase came as economies around the world recovered from the effects of the Covid-19 pandemic, which had led to a marginal fall in payment card spending in 2020.
RBR’s new report, Global Payment Cards Data and Forecasts to 2027, shows that growth in total purchase volume was seen across debit, credit, and prepaid cards, and in all regions. Excluding China – which accounted for 50% of total card spending across the globe – growth remained high at 22%.
Debit spending on the rise
Debit cards in particular reached a record high after the pandemic. The study shows that debit cards saw the largest increase in spending, rising by 25% to stand at $28 trillion. There was strong growth in credit card expenditure, which rose by 20% reflecting the recovery of travel and entertainment after the easing of pandemic restrictions in many countries.
In the UK alone, back in July, credit card spending was up to £59.1 billion in July, according to data published by UK Finance. This is an increase of 9.4% compared to July last year and suggests that consumers may be choosing to make purchases using their debit cards rather than their credit cards amid ongoing economic uncertainty.
Consumers are also likely to be making fewer high-value purchases that are typically made using credit cards to benefit from additional protections, for example for flights, holidays abroad and white goods. In addition, the increase in debit card spending may have been driven by retailers encouraging customers to pay by card or contactless payments where possible.
The increasing number of contactless debit cards, as well as changes in consumer behaviour that developed over the course of the pandemic, encouraged an uptick in the usage of such cards for low-value transactions.
Purchase volume worldwide, 2019-2021 ($ trillion). Source: Global Payment Cards Data and Forecasts to 2027 (RBR)
A global trend
As Covid-19 eventually subsides, the increased consumer preference for card payments at POS seen during the pandemic will continue at a global level. Similarly, the rise of e-commerce, a long-term trend accelerated by the pandemic, will be instrumental in driving further payment card spend.
The RBR’s report reveals that the most rapid growth in percentage terms was seen in the Middle East and Africa region, where card spending rose by almost a third. This was driven by credit card expenditure, which recovered from a 9% fall in 2020 to increase by 30%. Asia-Pacific saw the greatest absolute growth, primarily the result of an increase in debit card spending as contactless debit transactions continue to cannibalise cash usage in the region.
Daniel Dawson, who led RBR’s Global Payment Cards Data and Forecasts to 2027 study, commented: “The global payment card market has recovered strongly, despite the lingering effects of Covid‑19. Card usage will keep growing, as new habits that developed during the pandemic such as higher usage of contactless and e‑commerce stay in place”.
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