Spain Credit Card Transactions Market Overview, 2029

The Spanish credit card transaction market is predominantly focused on credit cards, while the landscape is progressively evolving toward digital wallets and contactless payments. The COVID-19 epidemic, as well as the growing availability of cell phones with NFC (Near Field Communication) technology, have expedited this change significantly. Contactless payments have gained popularity due to hygienic concerns and the convenience they provide. Cultural trends in Spain demonstrate an increasing preference among customers for digital payment methods, driven by factors such as convenience, increased security, and the expanding domain of e-commerce. While cash remains popular, its use is expected to decline by 2025, underlining the shift to digital payment methods. Cybersecurity concerns loom large, needing stringent safeguards to protect user data and assure transaction integrity. In terms of policy and laws, Spain follows EU rules on payment services (PSD2), which demand severe consumer protection measures and strong identification for online transactions. Although there are no particular limitations on credit card transactions, competition regulations are in place to ensure that issuers follow fair practices, promoting a competitive but regulated market environment.

According to the research report “Spain Credit Card Transaction Market Overview, 2029," published by Bonafide Research, the Spain Credit Card Transaction market is projected to grow with more than 5.50% CAGR from 2024 to 2029. Several factors influence the growth of the Spanish credit card transaction sector. These include increased smartphone penetration and broader acceptance of digital technologies. Furthermore, hygiene concerns and a need for faster transactions are driving the preference for contactless payments, while the thriving e-commerce sector continues to boost demand for online payment solutions. However, along with these drivers, the market faces significant difficulties. Educating older demographics about digital payment systems remains a big challenge, necessitating concerted initiatives to close the digital divide. The pricing dynamics of the digital payment landscape are complex, with transaction costs shifting depending on a variety of factors. Notably, credit card transaction cost is determined by card type, including rewards and travel benefits, issuer fees, and merchant processing fees. Furthermore, the market is segmented depending on card type, issuing bank, and merchant category, with each bringing unique price concerns and market dynamics. However, despite the granularity of price structures, access to average transaction value (ATV) data remains limited, making it difficult for market participants to optimise pricing strategies and allocate resources.

The credit card market encompasses various card types tailored to different consumer needs. General purpose credit cards, such as Visa, Mastercard, American Express, and Discover, offer versatility for a wide range of purchases and transactions, both online and in-person. These cards often come with rewards programs, cashback incentives, and robust security features. In contrast, specialty credit cards cater to specific demographics or interests, providing tailored rewards and benefits. Examples include airline miles cards, hotel rewards cards, and store credit cards. Additionally, there's a category referred to as "Other" credit cards, which encompasses less common types like prepaid cards, secured credit cards, corporate credit cards, and charge cards. Prepaid cards are loaded with a predetermined amount of funds, while secured credit cards require a security deposit, often used for credit building. Corporate credit cards are issued for business expenses, and charge cards necessitate full monthly balance payments. Providers like Visa and Mastercard play pivotal roles in offering credit card services in collaboration with financial institutions. Moreover, credit card applications span various sectors, including food and groceries, health and pharmacy, consumer electronics, and other areas like restaurants and bars, media and entertainment, and travel and tourism. Each application segment reflects the diverse usage of credit cards across different industries, highlighting the integral role credit cards play in facilitating everyday transactions and lifestyle needs.

Spain is slightly more reliant on cash transactions than its Northern European competitors, but recent statistics indicate that this gap is gradually shrinking. Despite the widespread use of digital payment methods around the world, Spain's preference for cash remains strong. However, ongoing changes in consumer behaviour, spurred in part by technology improvements and changing preferences, point to a possible evolution in payment patterns inside the country. While cash remains important in the Spanish economy, the growing popularity of digital alternatives indicates a dynamic landscape in which conventional and innovative payment methods coexist. Southern European countries, notably Italy, follow similar trends in the use of digital payment technologies, with a growing emphasis on contactless transactions. This tendency is consistent with broader European efforts to embrace digital financial services. Italy, like its Southern European peers, is making a considerable shift toward digitization in response to changing consumer tastes and technical developments. Contactless payments, in particular, are gaining popularity in these locations, reflecting a larger global trend toward cashless transactions. As digital infrastructure improves and customer confidence in digital payment security grows, Southern European countries are set to incorporate more digital solutions into their financial ecosystems.

The industry for digital payments is poised for enormous growth, This expansion creates multiple opportunities for various entities within the ecosystem. To begin, digital wallet companies stand to earn considerably from this growth trajectory, as customers increasingly prefer cashless transactions. Similarly, companies that specialise in contactless payment technology are positioned for success, given the growing demand for convenient and sanitary payment methods, especially in light of global health concerns. Furthermore, fintech companies that provide new payment solutions are well-positioned to benefit from shifting customer tastes and technical improvements. The COVID-19 pandemic sparked transformational changes in payment practices around the world, especially in Spain and other European countries. With hygiene concerns and social distancing measures requiring less physical contact, consumers are increasingly turning to contactless payments and internet transactions as safer alternatives. This transition has expedited the adoption of digital wallet technology, indicating an increasing reliance on digital financial services. The pandemic-induced changes in payment habits are predicted to have long-term consequences, influencing the future landscape of financial transactions beyond the immediate crisis time. As societies adjust to the new normal, the simplicity and security provided by digital payment systems are likely to solidify their spot in consumers' payment choices throughout Europe and beyond.
Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029



Aspects covered in this report
• Credit Card Transactions market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Card Type
• General Purpose
• Specialty & Other Credit Cards

By Provider
• Visa
• Master-card
• Others

By Application
• Food & Groceries
• Health & Pharmacy
• Consumer Electronics
• Other Application

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Credit Card Transactions industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.