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The Cards and Payments Industry in the UK: Emerging Trends and Opportunities to 2019

Published By :

Timetric

Published Date : Apr 2015

Category :

Banking

No. of Pages : 84 Pages

Synopsis

Timetric’s 'The Cards and Payments Industry in the UK: Emerging Trends and Opportunities to 2019' report provides top-level market analysis, information and insights into the UK's cards and payments industry, including:

  • Current and forecast values for each market in the UK's cards and payments industry, including debit cards, credit cards and charge cards. It also includes detailed analysis of the prepaid cards market.
  • Detailed insights into payment instruments including credit transfers, check payments, cash transactions, payment cards and direct debits. It also, includes an overview of the country's key alternative payment instruments.
  • Analysis of various market drivers and regulations governing the UK's cards and payments industry.
  • Detailed analysis of strategies adopted by banks and other institutions to market debit, credit and charge cards.
  • Comprehensive analysis of consumer attitudes and buying preferences for cards.
  • The competitive landscape of the UK's cards and payments industry.

Executive summary

  • Timetric’s 'The Cards and Payments Industry in the UK: Emerging Trends and Opportunities to 2019' report provides detailed analysis of market trends in the UK's cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including credit transfers, check payments, cash transactions, payment cards and direct debits during the review period (2010–2014).
  • The report also analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, and transaction values and volumes during the review period and over the forecast period (2015–2019). It also offers information on the country's competitive landscape, including market shares of issuers and schemes.
  • The report brings together Timetric’s research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers detailed regulatory policies, recent changes in regulatory structure, card fraud statistics, and profiles of card issuers operating in the country.

Scope

  • This report provides a comprehensive analysis of the UK's cards and payments industry.
  • It provides current values for the UK's cards and payments industry for 2014, and forecast figures to 2019.
  • It details the different economic, infrastructural and business drivers affecting the UK's cards and payments industry.
  • It outlines the current regulatory framework in the industry.
  • It details marketing strategies used by various banks and other institutions.
  • It profiles major banks in the UK's cards and payments industry.


Reasons to buy

  • Make strategic business decisions, using top-level historic and forecast market data, related to the UK's cards and payments industry and each market within it.
  • Understand the key market trends and growth opportunities in the UK's cards and payments industry.
  • Assess the competitive dynamics in the UK's cards and payments industry.
  • Gain insights into marketing strategies used for various card types in the UK.
  • Gain insights into key regulations governing the UK's cards and payments industry.

Key highlights

  • The UK is Europe’s largest and most highly competitive industry for payment cards. It accounted for 17.6% of Europe’s total transaction value in 2014, and 20.3% of its transaction volume. The UK payment cards market is mature, with a high penetration of credit and debit cards. Following the financial crisis, banks and card issuers were forced to introduce bespoke product and service offerings in order to retain their market share.
  • Consumers in the UK – especially the younger generation – are showing an inclination towards faster and more secure payment options. This has resulted in mobile operators, traditional and online retailers and other service providers introducing quick and efficient digital payment options. Consequently, payment cards are anticipated to lose share to alternative payment instruments over the forecast period (2015–2019).
  • With the UK’s economy recovering from the crisis and employment opportunities gradually growing from 2013 onwards, consumers have started to use credit cards more frequently. However, consumers are using credit cards for low-value transactions at POS terminals as they look to benefit from low-rate long duration balance transfer facilities and reward programs.
Table of Contents

1 Definitions and Methodology
1.1 Definitions
1.2 Methodology

2 Key Facts and Events

3 Executive Summary

4 Payment Instruments
4.1 Current Payments Environment
4.2 Alternative Payment Instruments
4.2.1 M-payments
4.2.2 PayPal
4.2.3 Skrill
4.2.4 MasterPass
4.2.5 Ukash
4.2.6 Paym
4.2.7 Pingit
4.2.8 Starbucks mobile wallet
4.2.9 Zapper
4.2.10 Zapp

5 Regulations in the Cards and Payments Industry
5.1 Regulatory Framework
5.1.1 Status of implementation of Payment Services Directive (PSD) in the UK
5.1.2 Interchange fee regulation
5.1.3 Single European Payment Area (SEPA) implementation in the UK
5.1.4 Best practice guidelines set by the UK Payment Cards Association
5.2 Anti-Money Laundering (AML)
5.3 Foreign Direct Investment (FDI) Regulations

6 Analysis of Cards and Payments Industry Drivers
6.1 Demographic Drivers
6.2 Economic Drivers
6.3 Infrastructure Drivers
6.4 Business Drivers

7 Market Segmentation and New Product Launches
7.1 Market Segmentation and Targeting
7.1.1 Consumer cards
7.1.2 Commercial cards
7.2 New Product Launches

8 Payment Cards
8.1 Payment Cards Analysis
8.1.1 Volume and value of payment card transactions by type
8.1.2 Personal vs commercial cards

9 Debit Cards
9.1 Debit Cards Market Analysis
9.1.1 Debit cards transaction volume and value by channel
9.1.2 Debit cards scheme shares in terms of number of cards in circulation and transaction value
9.1.3 Debit cards issuers market shares
9.1.4 Debit cards comparison

10 Credit Cards
10.1 Credit Cards Market Analysis
10.1.1 Credit cards transaction volume and value by channel
10.1.2 Credit cards scheme shares in terms of number of cards in circulation and transaction value
10.1.3 Credit cards issuers’ market share
10.1.4 Credit cards comparison

11 Charge Cards
11.1 Charge Cards Market Analysis
11.1.1 Charge cards transaction volume and value by channel
11.1.2 Charge cards scheme shares in terms of number of cards in circulation and transaction value
11.1.3 Charge cards comparison

12 Commercial Cards
12.1 Commercial Cards Market Analysis
12.1.1 Commercial cards comparison

13 Card Fraud Statistics
13.1 Card Fraud Analysis

14 Card Issuers
14.1 Lloyds Bank
14.2 Barclays Bank
14.3 HSBC
14.4 The Royal Bank of Scotland
14.5 Santander UK
14.6 American Express

15 Prepaid Cards
15.1 Prepaid Cards Market Analysis
15.1.1 Prepaid cards comparison

16 Merchant Acquiring
16.1 Merchant Acquiring Market Analysis

17 Appendix
17.1 Tables
17.2 Contact Timetric
17.3 About Timetric
17.4 Timetric’s Services
17.5 Disclaimer

List of Table


Table 1: Key Definitions
Table 2: Annual Average Exchange Rate
Table 3: The UK – Key Facts, 2014
Table 4: Regional Benchmarking of the UK Payment Cards, 2014
Table 5: The UK – Mode of Entry of Foreign Banks
Table 6: Cards for High-Income Consumers, 2015
Table 7: Cards for Travelers, 2015
Table 8: Cards for Students and Youth Population, 2015
Table 9: Cashback Credit Cards, 2015
Table 10: Shopping Reward Point Credit Cards, 2015
Table 11: Balance Transfer Credit Cards, 2015
Table 12: Commercial Cards Comparison and Key Features, 2015
Table 13: The UK – New Product Launches
Table 14: The UK – Pay Now, Average Interchange Fees: Intra-Network Transactions (%), 2010–2014
Table 15: The UK – Pay Now, Average Merchant Service Charge: Domestic Transactions (%), 2010–2019
Table 16: The UK – Debit Cards Comparison and Key Features, 2014
Table 17: The UK – Pay Later, Average Interchange Fees: Intra-Network Transactions (%), 2010–2014
Table 18: The UK – Pay Later, Average Merchant Service Charge: Domestic Transactions (%), 2010–2019
Table 19: The UK – Gold Credit Cards Comparison and Key Features, 2014
Table 20: The UK – Premium Credit Cards Comparison and Key Features, 2014
Table 21: The UK – Charge Cards Comparison and Key Features, 2014
Table 22: The UK – Commercial Cards Comparison and Key Features, 2014
Table 23: The UK – Prepaid Cards Comparison and Key Features, 2015
Table 24: The UK – Payment Instruments Transaction Value (GBP Billion), 2010–2014
Table 25: The UK – Payment Instruments Transaction Value (US$ Trillion), 2010–2014
Table 26: The UK – Payment Instruments Transaction Volume (Billion), 2010–2014
Table 27: The UK – Number of Payment Cards in Circulation by Type (Million), 2010–2019
Table 28: The UK – Volume of Payment Card Transactions by Type (Million), 2010–2019
Table 29: The UK – Value of Payment Card Transactions by Type (GBP Billion), 2010–2019
Table 30: The UK – Value of Payment Card Transactions by Type (US$ Billion), 2010–2019
Table 31: The UK – Personal and Commercial Cards Transaction Value (GBP Billion), 2010–2019
Table 32: The UK – Personal and Commercial Cards Transaction Value (US$ Billion), 2010–2019
Table 33: The UK – Personal and Commercial Cards Transaction Volume (Million), 2010–2019
Table 34: The UK – Number of Debit Cards in Circulation (Million), 2010–2019
Table 35: The UK – Debit Cards Transaction Volume and Frequency by Channel, 2010–2019
Table 36: The UK – Debit Cards Total and Average Transaction Value by Channel, 2010–2019
Table 37: The UK – Debit Cards Total and Average Transaction Value by Channel, 2010–2019
Table 38: The UK – Number of Debit Cards in Circulation By Scheme (Million), 2010–2014
Table 39: The UK – Debit Cards Transaction Value By Scheme (GBP Billion), 2010–2014
Table 40: The UK – Debit Cards Transaction Value By Scheme (US$ Billion), 2010–2014
Table 41: The UK – Debit Cards Transaction Value by Issuer (GBP Billion), 2010–2014
Table 42: The UK – Debit Cards Transaction Value by Issuer (US$ Billion), 2010–2014
Table 43: The UK – Number of Credit Cards in Circulation (Million), 2010–2019
Table 44: The UK – Credit Cards Transaction Volume and Frequency by Channel, 2010–2019
Table 45: The UK – Credit Cards Total and Average Transaction Value by Channel, 2010–2019
Table 46: The UK – Credit Cards Total and Average Transaction Value by Channel, 2010–2019
Table 47: The UK – Number of Credit Cards in Circulation By Scheme (Million), 2010–2014
Table 48: The UK – Credit Cards Transaction Value By Scheme (GBP Billion), 2010–2014
Table 49: The UK – Credit Cards Transaction Value By Scheme (US$ Billion), 2010–2014
Table 50: The UK – Credit Cards Transaction Value By Issuer (GBP Billion), 2010–2014
Table 51: The UK – Credit Cards Transaction Value By Issuer (US$ Billion), 2010–2014
Table 52: The UK – Credit Cards Balance Outstanding By Issuer (GBP Billion), 2010–2014
Table 53: The UK – Credit Cards Balance Outstanding By Issuer (US$ Billion), 2010–2014
Table 54: The UK – Number of Charge Cards in Circulation (Million), 2010–2019
Table 55: The UK – Charge Cards Transaction Volume and Frequency by Channel, 2010–2019
Table 56: The UK – Charge Cards Total and Average Transaction Value by Channel, 2010–2019
Table 57: The UK – Charge Cards Total and Average Transaction Value by Channel, 2010–2019
Table 58: The UK – Number of Charge Cards in Circulation By Scheme (Million), 2010–2014
Table 59: The UK – Charge Cards Transaction Value By Scheme (GBP Billion), 2010–2014
Table 60: The UK – Charge Cards Transaction Value By Scheme (US$ Billion), 2010–2014
Table 61: The UK – Number of Commercial Cards in Circulation (Million), 2010–2019
Table 62: The UK – Commercial Cards Transaction Value (GBP Billion), 2010–2019
Table 63: The UK – Commercial Cards Transaction Value (US$ Billion), 2010–2019
Table 64: The UK – Card Fraud (GBP Million), 2010–2014
Table 65: The UK – Card Fraud (US$ Million), 2010–2014
Table 66: The UK – Number of Prepaid Cards in Circulation (Million), 2010–2019
Table 67: The UK – Prepaid Cards Transaction Value (GBP Billion), 2010–2019
Table 68: The UK – Prepaid Cards Transaction Value (US$ Billion), 2010–2019
Table 69: The UK – Merchant Acquirers’ Transaction Volume by Channel (Billion), 2010–2019
Table 70: The UK – Merchant Acquirers’ Total Transaction Value (GBP Billion), 2010–2019
Table 71: The UK – Merchant Acquirers’ Total Transaction Value (US$ Billion), 2010–2019
Table 72: The UK – Retail Outlets and Merchant Accounts (Thousand), 2010–2019
Table 73: The UK – Merchant Acquirers’ Transaction Value (GBP Billion), 2010–2014
Table 74: The UK – Acquirers’ Transaction Value (US$ Billion), 2010–2014

List of Chart


Figure 1: The UK – Payment Instruments Shares by Transaction Value (%), 2010 and 2014
Figure 2: The UK – Payment Instruments Share by Transaction Volume (%), 2010 and 2014
Figure 3: The UK – Total Population and Structure, 2010–2019
Figure 4: The UK – Internet and Mobile Penetration (Users per 100 Inhabitants), 2010–2019
Figure 5: The UK – Economic Indicators, 2010–2019
Figure 6: The UK – Number of ATMs, POS Terminals and Branch Banking Composition, 2010–2019
Figure 7: The UK – Household Final Consumption Expenditure per Capita and Retail Sales
Figure 8: The UK – E-Commerce Value (US$ Billion), 2010–2019
Figure 9: The UK – Outbound and Inbound Trips Volume and Spending, 2010–2019
Figure 10: The UK – Cards and Payments Industry Segmentation by Card Type, 2015
Figure 11: The UK – Growth in Payment Cards Transaction Value and Number of Cards in Circulation by Type, 2010–2019
Figure 12: The UK – Volume and Value of Payment Card Transactions by Type (%), 2010–2019
Figure 13: The UK – Volume and Value of Contactless Payment Card Transactions, 2010–2014
Figure 14: The UK – Personal and Commercial Cards, Transaction Volume and Value (%), 2010–2019
Figure 15: The UK – Growth in Debit Cards Transaction Value and Number of Debit Cards in Circulation, 2010–2019
Figure 16: The UK – Debit Cards Transaction Volume and Value by Channel, 2010–2019
Figure 17: The UK – Debit Cards Scheme Shares in Terms of Number of Cards in Circulation and Transaction Value (%), 2014
Figure 18: The UK – Debit Cards Issuers’ Market Shares in Terms of Transaction Value (%), 2014
Figure 19: The UK – Growth in Credit Cards Transaction Value and Number of Credit Cards in Circulation, 2010–2019
Figure 20: The UK – Credit Cards Transaction Volume and Value by Channel, 2010–2019
Figure 21: The UK – Credit Cards Scheme Shares in Terms of Number of Cards in Circulation and Transaction Value (%), 2014
Figure 22: The UK – Credit Cards Issuers’ Market Share in Terms of Transaction Value (%), 2014
Figure 23: The UK – Credit Cards Issuers’ Market Share in Terms of Outstanding Balance (%), 2014
Figure 24: The UK – Growth in Charge Cards Transaction Value and Number of Charge Cards in Circulation, 2010–2019
Figure 25: The UK – Charge Cards Transaction Volume and Value by Channel, 2010–2019
Figure 26: The UK – Charge Cards Scheme Shares in Terms of Number of Cards in Circulation and Transaction Value (%), 2014
Figure 27: The UK – Number of Commercial Cards in Circulation and Transaction Value, 2010–2019
Figure 28: The UK – Shares of Various Types of Card Fraud in Terms of Transaction Value (%), 2010 and 2014
Figure 29: The UK – Number of Prepaid Cards in Circulation and Transaction Value, 2010–2019
Figure 30: The UK – Merchant Acquirers’ Transaction Volume and Value, 2010–2019
Figure 31: The UK – Merchant Acquirers’ Market Share in Terms of Transaction Value (%), 2014
Figure 32: The UK – Number of Retail Outlets and Total Merchant Accounts (Thousand), 2010–2019

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