Starter Credit Card Market Research Report By Card Provider Type (Bank-Issued Credit Cards, Credit Union-Issued Credit Cards, Fintech-Issued Credit Cards), By Card Network (Visa, Mastercard, American Express, Discover, JCB), By Reward Type (Cash Back, Points, Miles, Travel Rewards, Merchandise Rewards), By Annual Fee (No Annual Fee, Low Annual Fee, Moderate Annual Fee, High Annual Fee), By Age (16-24 Years, 25-34 Years, 35-44 Years, 45-54 Years, 55+ Years) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and

Global Starter Credit Card Market Overview

Starter Credit Card Market Size was estimated at 38.37 (USD Billion) in 2022. The Starter Credit Card Market Industry is expected to grow from 40.61 (USD Billion) in 2023 to 67.74 (USD Billion) by 2032. The Starter Credit Card Market CAGR (growth rate) is expected to be around 5.85% during the forecast period (2024 - 2032).

Key Starter Credit Card Market Trends Highlighted

The Starter Credit Card Market is growing due to the trend of an increasing number of young adults entering the financial system as well as the rise of the e-commerce industry. The main growth factors are the unwavering demand for easy-to-offer means of payment, control of their funds, and adoption of modern features, e.g., attractive reward systems and cashback deals.

The growth of online and mobile banking, as well as virtual cards, is an opportunity for growth, bringing about a need for these services. Trends shaping the market include the emergence of digital-only banks, the integration of artificial intelligence for credit scoring, and the rise of buy-now-pay-later services.

In order to sustain competition in the Starter Credit Card Market, players are required to offer good rewards to customers and attractive and useful applications. Hence, concern has been directed at the technological needs of the young adult markets, and the Starter Credit Card Market is bound to progress.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Starter Credit Card Market Drivers

Rising Popularity of Digital Payments

One of the drivers of growth in the Starter Credit Card Market Industry is the increasing adoption of digital payment methods. As more and more consumers quit using cash and checks in favor of electronic payment methods, they find starter credit cards a convenient and secure tool to pay for goods and services. Therefore, in the years to come, the growth of the market would likely continue hand in hand with the increasing popularity of digital payment methods. A beneficial factor for growth in the Starter Credit Card Market Industry is that such cards are very convenient for new consumers with little to no experience in using credit. Starter credit cards have lower interest rates and credit limits than regular credit cards, which makes them more manageable and less risky for novice consumers attempting to build credit. Moreover, they often come with rewards and benefits that cater to the wants of novice customers, helping them save money and build credit more quickly. Requirements for customers using these credit cards are not harsh because they are beginning their consumer experience. Hence, factors such as the increasing adoption of digital payment methods and the convenience of the cards for novice customers will contribute to the growth of the market.

Growing Demand for Financial Inclusion

The growing demand for financial inclusion is another major driver of growth in the Starter Credit Card Market Industry. In many parts of the world, a large portion of the population is still unbanked or underbanked. This means that they do not have access to traditional banking services, such as checking and savings accounts or credit cards. Starter credit cards can play a vital role in promoting financial inclusion by providing a safe and convenient way for unbanked and underbanked consumers to make purchases and build their credit history. By offering starter credit cards with low credit limits and interest rates, financial institutions can help these consumers establish a positive credit history and gain access to other financial products and services. The growing demand for financial inclusion is creating a significant opportunity for the Starter Credit Card Market Industry. As more and more people around the world gain access to financial services, the demand for starter credit cards is expected to increase substantially.

Increasing Use of Credit Cards for Online Purchases

The increasing use of credit cards for online purchases is also contributing to the growth of the Starter Credit Card Industry. In the past, cash and checks were the most common payment methods for online purchases. However, the growing popularity of e-commerce has led to a shift towards credit cards as the preferred payment method. Starter credit cards are particularly well-suited for online purchases because they offer a number of advantages over other payment methods. For example, starter credit cards can be used to make purchases from anywhere in the world, and they offer fraud protection in case of unauthorized purchases. The increasing use of credit cards for online purchases is creating a positive environment for the growth of the Starter Credit Card Market Industry. As more and more consumers shop online, the demand for starter credit cards is expected to increase significantly.

Starter Credit Card Market Segment Insights

Starter Credit Card Market Card Provider Type Insights

The "Card Provider Type" segment plays a crucial role in shaping the dynamics of the Starter Credit Card Market. This segment categorizes the market based on the type of financial institution that issues the credit cards. Three primary types of card providers dominate the market: banks, credit unions, and fintech companies. Bank-Issued Credit Cards: Banks have traditionally been the primary issuers of credit cards globally. With their extensive branch networks and established customer bases, banks hold a significant share of the Starter Credit Card Market revenue. In 2024, the Starter Credit Card Market revenue generated by bank-issued credit cards is estimated to reach approximately 25.4 billion U.S. dollars. This dominance can be attributed to the trust and reliability associated with banks, as well as their ability to offer a wide range of credit card products tailored to different customer segments. 

Credit Union-Issued Credit Cards: Credit unions and member-owned financial cooperatives have also emerged as notable players in the Starter Credit Card Market. Catering primarily to specific communities or employee groups, credit unions often offer competitive rates and flexible terms on their credit cards. In 2024, the Starter Credit Card Market revenue generated by credit union-issued credit cards is projected to reach around 8.3 billion U.S. dollars. Credit unions leverage their close relationships with members to provide personalized financial services, including starter credit cards designed to support financial inclusion. Fintech-Issued Credit Cards: The rise of fintech companies has introduced a new dimension to the Starter Credit Card Market. Fintechs, leveraging technology and innovative approaches, have disrupted traditional banking models and entered the credit card market.By utilizing digital platforms and data-driven decision-making, fintechs offer starter credit cards with unique features, such as simplified application processes, tailored rewards programs, and real-time spending notifications. In 2024, the Starter Credit Card Market revenue generated by fintech-issued credit cards is anticipated to reach approximately 7.2 billion U.S. dollars. Fintechs cater to the growing tech-savvy population, particularly among younger generations, who seek convenient and digitally advanced financial services. The segmentation of the Starter Credit Card Market by Card Provider Type offers valuable insights into the competitive landscape and growth opportunities. Banks, credit unions, and fintechs each possess unique strengths and target specific customer segments. As the market continues to evolve, the interplay between these card providers will shape the future of the Starter Credit Card Market.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Starter Credit Card Market Card Network Insights

The segmentation of the Starter Credit Card Market based on Card Network highly influences the overall growth and competitive landscape of the industry. Leading players in this segment include Visa, Mastercard, American Express, Discover, and JCB. In 2023, Visa held the largest market share, capturing over 50% of the Starter Credit Card Market revenue. Mastercard followed closely with a market share of approximately 30%. American Express, Discover, and JCB held smaller yet significant market shares, collectively accounting for around 20% of the revenue. The presence of these established players drives market growth through strategic partnerships, innovative product offerings, and marketing campaigns. As a result, the Card Network segment is expected to witness steady growth in the coming years. This growth will be driven by increasing consumer preference for starter credit cards as a convenient and accessible financial tool.

Starter Credit Card Market Reward Type Insights

Reward Type is a key segmentation factor in the Starter Credit Card Market, influencing consumer preferences and market growth. Cash Back rewards offer a straightforward approach, providing cardholders with a percentage of their spending back in cash. In 2023, the Cash Back segment held a significant market share of 32.5%, driven by its simplicity and appeal to value-conscious consumers. Points rewards allow cardholders to accumulate points that can be redeemed for various rewards, such as travel, merchandise, or gift cards. In 2023, the Points segment accounted for 28.1% of the market, appealing to consumers seeking flexibility and customization in their rewards. Miles rewards are tailored towards frequent travelers, offering miles that can be redeemed for flights and other travel-related expenses. The Miles segment held a 22.2% market share in 2023, driven by the growing popularity of travel rewards programs. Travel Rewards provides exclusive benefits and perks specifically designed for travelers, such as airport lounge access and priority boarding. The Travel Rewards segment captured a market share of 12.4% in 2023, targeting consumers with a strong preference for travel-related rewards. Merchandise Rewards offers a wide range of merchandise options for which cardholders can redeem their rewards. The Merchandise Rewards segment accounted for 4.8% of the market in 2023, appealing to consumers seeking tangible rewards and brand partnerships.

Starter Credit Card Market Annual Fee Insights

The Starter Credit Card market segmentation by Annual Fee includes No Annual Fee, Low Annual Fee, Moderate Annual Fee, and High Annual Fee. The No Annual Fee segment held the largest market share in 2023, accounting for approximately 45% of the Starter Credit Card Market revenue. The increasing popularity of no-annual-fee credit cards can be attributed to their affordability and accessibility, making them an attractive option for first-time credit card users and those with limited credit history. The Low Annual Fee segment is expected to witness significant growth over the forecast period, owing to the rising demand for entry-level credit cards with minimal annual fees. Moderate Annual Fee and High Annual Fee segments cater to consumers with higher credit scores and spending habits, offering additional benefits and rewards. The segmentation of the Starter Credit Card market by Annual Fee provides valuable insights into the preferences and financial capabilities of consumers, enabling market players to tailor their products and marketing strategies accordingly.

Starter Credit Card Market Age Insights

The Starter Credit Card Market is segmented into various age groups, with each segment exhibiting unique characteristics and preferences. 16-24 Years: This segment is characterized by a high propensity to spend and a desire for convenient payment options. Starter credit cards offer an attractive solution for this age group, providing them with access to credit and the ability to establish a positive credit history. The market for starter credit cards in this age group is expected to grow significantly in the coming years, driven by the increasing number of young adults entering the workforce and the rising popularity of online shopping.25-34 Years: This segment represents the largest target market for starter credit cards. Individuals in this age group typically start their careers and establish financial independence. Starter credit cards provide them with a manageable way to build credit and access additional funds for unexpected expenses or large purchases. The market for starter credit cards in this age group is expected to remain strong in the coming years, driven by the growing number of millennials entering this age bracket. 35-44 Years: 

This segment consists of individuals who are typically more financially established and have a higher income. Starter credit cards may be less appealing to this age group, as they may have already established a strong credit history and have access to other forms of credit. However, some individuals in this age group may still opt for a starter credit card as a backup payment option or for convenience. 45-54 Years: This segment represents a smaller market for starter credit cards. Individuals in this age group are typically more financially secure and may have less need for a starter credit card. However, some individuals in this age group may still choose to get a starter credit card to improve their credit score or to take advantage of rewards or other benefits.55+ Years: This segment represents the smallest market for starter credit cards. Individuals in this age group are typically retired or nearing retirement and may have less need for a starter credit card. However, some individuals in this age group may still choose to get a starter credit card for convenience or to take advantage of rewards or other benefits.

Starter Credit Card Market Regional Insights

The regional segmentation of the Starter Credit Card Market offers valuable insights into the market's geographical distribution and growth dynamics. North America holds a significant share of the global market, driven by the presence of established financial institutions and a high adoption rate of digital banking services. Europe follows closely, with a mature market and a growing demand for starter credit cards among young consumers. The Asia-Pacific (APAC) region is expected to witness substantial growth, fueled by the increasing disposable income and growing middle class in countries like China and India. South America and the Middle East and Africa (MEA) regions are also witnessing a rise in the demand for starter credit cards as financial inclusion efforts expand access to banking services. These regional insights are crucial for businesses operating in the Starter Credit Card Market, enabling them to tailor their strategies and target specific markets effectively.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Starter Credit Card Market Key Players And Competitive Insights

Major players in the Starter Credit Card Market industry are constantly striving to gain a competitive advantage by introducing innovative products and services. Leading Starter Credit Card Market players are focusing on developing new technologies to enhance the customer experience and provide personalized offerings. The Starter Credit Card Market development landscape is characterized by strategic partnerships and collaborations between players to expand their market reach and enhance their product portfolio. The Starter Credit Card Market Competitive Landscape is expected to remain highly competitive in the coming years, with players continuously seeking to differentiate their offerings and gain market share. Discover Financial Services, a leading provider of financial services in the United States, offers a range of Starter Credit Card Market products tailored to meet the needs of consumers with limited or no credit history. 

Discover it Secured Credit Card is designed to help consumers build credit while earning rewards on purchases. The card offers a competitive interest rate and no annual fee, making it an attractive option for those looking to establish or rebuild their credit. Discover also provides access to online tools and resources to help cardholders manage their finances and track their progress. Capital One Financial Corporation, another major player in the Starter Credit Card Market, offers a range of credit cards designed for consumers with varying credit profiles. The Capital One Platinum Credit Card is a popular choice for those with limited credit history, as it offers a low interest rate and no annual fee. Capital One also provides access to its mobile app, which allows cardholders to manage their account, make payments, and track their spending. The company's focus on providing personalized credit solutions and its commitment to financial education sets it apart in the Starter Credit Card Market.

Key Companies in the Starter Credit Card Market Include

• TD Bank


• American Express


• Chase


• Wells Fargo


• Bank of America


• Navy Federal Credit Union


• Santander


• HSBC


• Ally Bank


• Discover


• Citi


• PNC


• USAA


• Capital One


• Barclays

Starter Credit Card Industry Developments

The Starter Credit Card Market is expected to exhibit a steady growth trajectory over the forecast period of 2024-2032. In 2023, the market was valued at approximately $40.61 billion, and it is projected to reach $67.74 billion by 2032, expanding at a CAGR of 5.85%. Key factors driving the market growth include increasing demand for convenient and accessible credit options among young consumers and financial inclusion initiatives by governments and financial institutions. The market is characterized by the presence of both traditional banks and fintech companies offering starter credit cards with varying features and benefits. Recent developments include the launch of digital-first starter credit cards, partnerships between banks and retailers to offer co-branded cards, and the adoption of advanced technologies such as artificial intelligence (AI) and machine learning (ML) to enhance creditworthiness assessment and fraud detection.

Starter Credit Card Market Segmentation Insights

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  Starter Credit Card Market Card Provider Type Outlook

  
  
  
  
  • Bank-Issued Credit Cards
  
  
  • Credit Union-Issued Credit Cards
  
  
  • Fintech-Issued Credit Cards
  
  
  
  

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  Starter Credit Card Market Card Network Outlook

  
  
  
  
  • Visa
  
  
  • Mastercard
  
  
  • American Express
  
  
  • Discover
  
  
  • JCB
  
  
  
  

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  Starter Credit Card Market Reward Type Outlook

  
  
  
  
  • Cash Back
  
  
  • Points
  
  
  • Miles
  
  
  • Travel Rewards
  
  
  • Merchandise Rewards
  
  
  
  

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  Starter Credit Card Market Annual Fee Outlook

  
  
  
  
  • No Annual Fee
  
  
  • Low Annual Fee
  
  
  • Moderate Annual Fee
  
  
  • High Annual Fee
  
  
  
  

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  Starter Credit Card Market Age Outlook

  
  
  
  
  • 16-24 Years
  
  
  • 25-34 Years
  
  
  • 35-44 Years
  
  
  • 45-54 Years
  
  
  • 55+ Years
  
  
  
  

• 
  

  Starter Credit Card Market Regional Outlook

  
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia Pacific
  
  
  • Middle East and Africa