Market Overview

The size of the domestic credit card market expanded to approximately 89 trillion yen in FY2022 (based on the shopping gross transaction value at credit card companies [issuers]).
The expansion of the market size was influenced by the recovery in the frequency of credit card payments for travel, dining, leisure, ETC (Electronic Toll) and gasoline, supported by the removal of pandemic restrictions.
Although the growth of the credit card market is expected to continue in FY2023, it is necessary to closely monitor how changes in the external environment, such as rising prices, will affect the performance of credit card issuers.

Noteworthy Topics

Strengthening Ties with Other Financial Services

In recent years, credit card companies have strengthened their ties with securities and insurance industries. Bank-affiliated card companies have been trying to utilize personal IDs they have to expand the use of credit cards in cooperation with banks. One of the reasons for reinforcing cooperation with securities and insurance companies is that their goal is to acquire customers from both ends through product design, for example with a product that increases the percentage of reward points for cardholder using the service of a partner company. Credit card companies expand their business by cross-selling financial products with banks, securities companies, and insurance companies.
In addition, efforts are underway to strengthen linkages with common reward points, which may accelerate cooperation with businesses in the areas surrounding cashless payments.

Future Outlook

Size of the credit card market is expected to grow steadily to around 158 trillion yen by FY2028.

The market growth drivers include the increased use of credit cards in previously untapped markets such as real estate, weddings, and funerals, as well as the widespread adoption of cashless payments in everyday consumer activities. Given the expansion of marketing activities based on credit cardholders' personal IDs, growing cardholders, or the number of personal IDs, is critical for credit card firms' business growth. Making attempts to become a primary credit card issuer for a cardholder, as well as an issuer of a secondary credit card, is critical.

Research Outline