Market Overview
The global consumer credit market size was valued at USD 12.0 Billion in 2024 and is forecasted to reach USD 17.0 Billion by 2033, growing at a CAGR of 3.9% during the forecast period 2025-2033. The market growth is driven by rising disposable incomes, increasing consumer spending, and the digitalization of financial services, including widespread adoption of credit cards and buy now, pay later (BNPL) services. North America currently dominates the market, holding a share of over 35% in 2024.
Study Assumption Years
- Base Year: 2024
- Historical Year/Period: 2019-2024
- Forecast Year/Period: 2025-2033
Consumer Credit Market Key Takeaways
- The global consumer credit market size was USD 12.0 Billion in 2024.
- The market is expected to reach USD 17.0 Billion by 2033.
- It is projected to grow at a CAGR of 3.9% during 2025-2033.
- North America accounted for the largest market share of over 35% in 2024.
- Market growth is propelled by improving economic conditions, rising MSMEs in developing countries, and expanding financial management services.
- Innovations in financial technology, including AI-driven credit scoring and seamless digital platforms, have enhanced credit accessibility.
- The increasing adoption of BNPL services and mobile banking solutions further diversify credit offerings and boost market growth.
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Market Growth Factors
The growth of the consumer credit market is being driven by a mix of economic expansion, urban development, and the digital evolution of financial services. As more people join the middle class in emerging markets, there’s a rising demand for credit products that help improve living standards. Cutting-edge financial technologies, like AI-powered credit scoring and digital platforms, have made it easier for underserved communities to access credit, allowing them to engage more fully in formal credit systems. Plus, the popularity of BNPL (buy now, pay later) services, such as Visa’s Flexible Credential with Affirm Card, is enhancing payment flexibility and broadening market reach.
The growth of micro, small, and medium enterprises (MSMEs) is also a key factor in stimulating the market. In India, MSMEs are responsible for creating 120 million jobs and contribute around 33% to the GDP. Vehicle loans in India have surged by 137% over the past three years, showcasing rapid growth in non-revolving credits like auto and education loans. The boom in startups, especially in tier-2 and tier-3 cities, is further fueling the demand for consumer credit. A similar pattern can be seen in the US, where 92% of businesses are microbusinesses, highlighting the need for credit to support their operations and growth.
Moreover, the increasing use of social media by consumer credit agencies is enhancing market connectivity and engaging consumers more effectively. Banks like Bank of America, Citibank, and Chase are actively using social media to educate customers about credit services, which helps build trust and improve market penetration. For example, kakaobank in Korea gained over 2 million subscribers in just 15 days, thanks to significant savings and lending volumes. This kind of digital engagement is expected to drive revenue growth in the market.
Market Segmentation
Analysis by Credit Type:
- Revolving Credits
- Non-revolving Credits: The largest segment in 2024, involving fixed upfront loans repaid in installments. Growth driven by auto and education loans, with vehicle loans in India growing 137% over three years and Americans averaging USD 55.0 Billion in new auto loans monthly in late 2023.
Analysis by Service Type:
- Credit Services: Led the market in 2024, including loan provision and credit-related information. Growth catalyzed by rising loans for education, vehicles, and home renovation. For example, 9.43 million people in Great Britain had loans in 2020; 58% of American adults (18-29 years) hold student loan debt.
- Software and IT Support Services
Analysis by Issuer:
- Banks and Finance Companies: Market leaders in 2024, providing financial services like lending, borrowing, and investing, facilitating economic activity domestically and internationally.
- Credit Unions
- Others
Analysis by Payment Method:
- Direct Deposit
- Debit Card: Leading payment method with about 60% market share in 2024. Debit cards simplify EMI payments with low or no-cost EMI options. For example, HDFC Bank’s EASYEMI allows shopping with installment payments both online and offline.
- Others
Regional Insights
In 2024, North America dominated the consumer credit market with over 35% market share, driven by growing adoption among small and medium enterprises facilitating financial activities. The US loans reached USD 12,305.379 billion in March 2024. Presence of established banks like Citi Bank, Bank of America, Goldman Sachs, and Morgan Stanley along with their expansion plans contribute to the robust market outlook. Citigroup’s launch of an investment banking unit in China exemplifies strategic regional engagements.
Recent Developments & News
- December 2024: Axis Bank launched ‘Primus’, a super-premium credit card with Visa targeting ultra-high-net-worth individuals in India, offering bespoke global privileges.
- December 2024: ICICI Bank and Times Internet introduced ‘Times Black ICICI Bank Credit Card’, a metal card powered by Visa with luxury features including unlimited lounge access worldwide.
- October 2024: General Motors and Barclays U.S. Consumer Bank entered a long-term partnership to exclusively issue GM Rewards Mastercard and GM Business Mastercard in the US, enhancing customer loyalty.
- September 2024: CARD91 launched a 3-in-1 card platform integrating ID, access, and prepaid card solutions, catering to corporate employees and students with enhanced security and convenience.
- August 2024: Visa showcased payment innovations at Global Fintech Fest 2024 in India, including HDFC Bank’s POS, Paytm NFC Card Soundbox, and Axis Bank Neo app.
Key Players
- Bank of America
- Barclays
- BNP Paribas
- China Construction Bank
- Citigroup
- Deutsche Bank
- HSBC
- Industrial and Commercial Bank of China (ICBC)
- JPMorgan Chase
- Mitsubishi UFJ Financial
- Wells Fargo
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