Raynor de Best
Content expert covering payments and (crypto)currencies
U.S. credit cards - statistics & facts
Seen as a competitive market for credit cards, the U.S. houses some of the world's most-known brands and has the highest user figures for the payment option. The number of credit cards in circulation, for example, is roughly three times higher than the debit card count. The market consists of four major players, with market shares of Visa outweighing its competitors for several subsequent years. Of the banking institutions in the United States that issued credit cards, Citibank and Chase ranked among the largest issuers of credit cards in the country, with over 80 million active accounts each. Will inflation and economic uncertainty in 2022, however, change the payment behavior of Americans?
Credit card debt and inflation
Inflation in 2022 caused a surge in United States credit card balances, despite high-interest rates from lenders. The total credit card debt of 925 billion U.S. dollars in Q3 2022 was a record high and an increase of 38 billion USD - or 4.2 percent -compared to the previous quarter. The delinquency rate of credit card loans at commercial banks returned to a value last seen during the coronavirus pandemic. The cost of living changed payment behavior for online shopping in the United States in 2022, with four out of 10 respondents using debit cards more often than before. U.S. consumer demand for interest-free BNPL options during holiday shopping was higher than for credit cards, but not by much.Usage across the country
Credit card debt varied significantly by state. Alaska recorded the highest average credit card debt at over 7,000 U.S. dollars in 2021, as opposed to Wisconsin - with an average debt of nearly 4,600 U.S. dollars. Nevertheless, it became the leading source of debt among consumers across the country in 2022. Americans are 40 percent likely to use a credit card for an in-store retail purchase. Credit cards are also often used for online purchases, albeit not as much as when shopping offline: 30 percent of consumers are likely to use a credit card then - the same percentage as digital wallets.
