Consumer Finance in the US
Euromonitor International's Consumer Finance in the US report establishes the size and structure of the market for ATMs, credit cards, debit cards, store cards and smart cards. It looks at key players in the market (issuers and operators), number of cards in circulation, numbers transactions and value of transactions. It offers strategic analysis of sector forecasts and trends to watch.
Buy online to access strategic market analysis and an interactive statistical database of value and volume for retail and internet transactions, number of cards in circulation and company brand shares.
Tables: 146 | Publication date: Feb 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Consumer lending; Financial cards and payments
Executive summary
Economic Conditions Continue Downward
The sudden end of the credit boom, the housing crunch, rising prices of food and fuel, and instability in the job market all contributed to the economic downturn in 2008. While consumers are forced to be more conservative, food still needs to be put on the table, automobiles still require fuel, and utility bills must be paid. Although budgets are tightening, the American propensity to spend continues, albeit to a lesser extent than when economic conditions were strong. Despite the poor economic climate, credit card use, in value and volume terms, continues to grow year-on-year.
Retailers Bring the Attention of Congress to Rising Interchange Fees
Two members of Congress, one Democrat and one Republican, jointly drew up the Credit Card Fair Fee Act to set limits on the interchange fees that credit card companies charge retailers. The retail industry is becoming more vocal about these fees, and small retailers, in particular, have expressed concerns regarding their margins being further cut by rising interchange fees. Government intervention would force large credit card companies, namely Visa and MasterCard, to meet with retailers to negotiate interchange fees. Lowered interchange fees for retailers could, however, lead to increased fees and interest rates for the consumer.
Adopters of New Technologies for Payments Are Few
In 2008, American Express announced the phasing out of its contactless cards. Solidus Networks, the company that ran Pay By Touch, a biometrics payment system, filed for bankruptcy in 2008. The growth of payments via mobile phones is far slower than in other developed markets, such as Japan. While for certain types of payments, namely transportation services, consumers are willing to adopt newer payment systems, credit or debit cards are not as well received by consumers as initially forecast by the industry. However, credit card companies, along with other players, like PayPal, continue to invest in technologies that will make the payment process more convenient and secure for the retailer and consumer.
Gift Cards Continue to Grow
Both open loop and closed loop gift cards continued to grow in 2008. While closed loop gift cards have had to overcome fees for non-use and expiration dates (which are now no longer relevant for many of these cards), bankruptcy filings by various retailers threatened the worth of those respective gift cards. Open loop gift cards do not suffer from this potential problem, but they have fees and other surcharges attached. However, they benefit from the ability for the cardholder to use the cards at different locations. Both types of gift cards have established a presence as gifts for birthdays and holidays, as well as rewards from companies to give to employees. The gift card market will continue to grow strongly, despite the various drawbacks.
Consumer Payments Forecast To Grow Despite Economic Uncertainty
While economists and financial experts remain uncertain about when economic recovery in the US and globally will occur, it is expected to happen some time during the forecast period. While year-on-year growth in financial card transactions slowed in 2008, and the slowdown is expected to continue into 2009 at least, various payment methods, namely card payments, cash payments and electronic/automated clearing house (ACH) payments, are expected to see growth over the forecast period, while other paper payments, such as cheques, will experience a decline.
Table of contents
CONSUMER FINANCE IN THE US : MARKET INSIGHT
EXECUTIVE SUMMARY
Economic Conditions Continue Downward
Retailers Bring the Attention of Congress to Rising Interchange Fees
Adopters of New Technologies for Payments Are Few
Gift Cards Continue to Grow
Consumer Payments Forecast To Grow Despite Economic Uncertainty
KEY TRENDS AND DEVELOPMENTS
Pending Congressional Action Seeks to Reform the Credit Card Industry
Rising Interchange Fees Contribute to Potential for Alternative Payments
The Spending Culture Prevails Even Amidst Current Economic Climate
Visa and MasterCard’s Recent IPOs Brings More Transparency to the Industry
Closed Loop Gift Cards Continue to Grow Strongly
MARKET DATA
Table 1 Consumer Payments: Value 2003-2008
Table 2 Financial Cards: Number of Cards in Circulation 2003-2008
Table 3 Financial Cards Transactions: Value 2003-2008
Table 4 Financial Cards: Number of Transactions 2003-2008
Table 5 Financial Cards: Number of Accounts 2003-2008
Table 6 Financial Cards: Number of Cards by Issuer 2003-2007
Table 7 Financial Cards: Number of Cards by Operator 2003-2007
Table 8 Financial Cards: Card Payment Transaction Value by Operator 2003-2007
Table 9 Financial Cards: Card Payment Transactions by Acquirer 2003-2007
Table 10 Consumer Payments Forecast: Value 2008-2013
Table 11 Financial Cards Forecast: Number of Cards in Circulation 2008-2013
Table 12 Financial Cards Forecast: Value 2008-2013
Table 13 Financial Cards Forecast: Number of Transactions 2008-2013
Table 14 Financial Cards Forecast: Number of Accounts 2008-2013
MARKET INDICATORS
Table 15 Number of POS Terminals 2004-2008
Table 16 Number of ATMs 2004-2008
Table 17 Disposable Income 2003-2008
Table 18 Value Lost to Fraud 2003-2008
Table 19 Acquirer Fraud 2003-2008
Table 20 Card Expenditure by Location 2008
Table 21 Card Expenditure by Sector 2008
Table 22 Financial Cards in Circulation by Type: % Number of Cards 2004-2008
Table 23 Domestic versus Foreign Spend 2008
DEFINITIONS
Summary 1 Research Sources
CONSUMER LENDING IN THE US
EXECUTIVE SUMMARY
Subprime Mortgages Lead to a Disaster in the Credit Market
Lending Standards on Loans Tighten for Consumers
Growing Number of Consumer Bankruptcies Filed in 2008
Peer-to-Peer Lending Provides an Initial Spark but Soon Fades
Gross Lending Forecast for Continued Growth but at Slower Rates
KEY TRENDS AND DEVELOPMENTS
The Federal Government Attempts to Stabilise the Financial Market
Mortgage Lenders Tighten Standards as Greater Federal Intervention Looms
The Un/Underbanked Population Slowly See More Banking Opportunities
Record College Enrolments Drive Greater Demand for Education Loans
“Green” Mortgages Re-emerge
Greater Demand for Elective Medical Procedures Spur New Loan Products
MARKET DATA
Table 24 Consumer Lending By Sector: Outstanding Balance: Value 2003-2008
Table 25 Consumer Lending By Sector: Outstanding Balance: % Value Growth 2003-2008
Table 26 Consumer Lending By Sector: Gross Lending: Value 2003-2008
Table 27 Consumer Lending By Sector: Gross Lending: % Value Growth 2003-2008
Table 28 Consumer Lending: Non-performing vs Other Loans 2003-2008
Table 29 Mortgages/Housing: Non-performing vs Other Loans 2003-2008
Table 30 Consumer Credit: Non-performing vs Other Loans 2003-2008
Table 31 Forecast Consumer Lending By Sector: Outstanding Balance: Value 2008-2013
Table 32 Forecast Consumer Lending By Sector: Outstanding Balance: % Value Growth 2008-2013
Table 33 Forecast Consumer Lending By Sector: Gross Lending: Value 2008-2013
Table 34 Forecast Consumer Lending By Sector: Gross Lending: % Value Growth 2008-2013
DEFINITIONS
Summary 2 Research Sources
LOCAL COMPANY PROFILES - USA
ALLIANCE DATA SYSTEMS CORP - FINANCIAL CARDS AND PAYMENTS - USA
STRATEGIC DIRECTION
KEY FACTS
Summary 3 ADS Alliance Data Systems Inc: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 4 ADS Alliance Data Systems Inc: Competitive Position 2007
BANK OF AMERICA CORP - FINANCIAL CARDS AND PAYMENTS - USA
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Bank of America Corp: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 6 Bank of America Corp: Competitive Position 2007
CHASE PAYMENTECH SOLUTIONS LLC - FINANCIAL CARDS AND PAYMENTS - USA
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Chase Paymentech Solutions LLC: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 8 Chase Paymentech Solutions LLC: Competitive Position 2007
DISCOVER FINANCIAL SERVICES INC - FINANCIAL CARDS AND PAYMENTS - USA
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Discover Financial Services LLC: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 10 Discover Financial Services LLC: Competitive Position 2007
GENERAL ELECTRIC CO (GE) - FINANCIAL CARDS AND PAYMENTS - USA
STRATEGIC DIRECTION
KEY FACTS
Summary 11 GE Money: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 12 GE Money: Competitive Position 2007
ATM TRANSACTIONS IN THE US
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 35 ATM Cards Sector Performance: 2003-2008
Table 36 ATM Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 37 ATM Cards Sector Performance: % Growth 2003-2008
Table 38 ATM Cards in Circulation Sector Performance: % Growth 2003-2008
Table 39 ATM Cards Forecast Sector Performance: 2008-2013
Table 40 ATM Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 41 ATM Cards Forecast Sector Performance: % Growth 2008-2013
Table 42 ATM Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
DEBIT TRANSACTIONS IN THE US
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 43 Debit Cards Sector Performance: 2003-2008
Table 44 Debit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 45 Debit Cards Sector Performance: % Growth 2003-2008
Table 46 Debit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 47 Debit Cards: Number of Cards by Issuer 2003-2007
Table 48 Debit Cards: Number of Cards by Operator 2003-2007
Table 49 Debit Cards Transactions by Acquirer 2003-2007
Table 50 Debit Cards Payment Transaction Value by Operator 2003-2007
Table 51 Debit Cards Forecast Sector Performance: 2008-2013
Table 52 Debit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 53 Debit Cards Forecast Sector Performance: % Growth 2008-2013
Table 54 Debit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CREDIT CARD TRANSACTIONS IN THE US
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 55 Credit Cards Sector Performance: 2003-2008
Table 56 Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 57 Credit Cards Sector Performance: % Growth 2003-2008
Table 58 Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 59 Personal Credit Cards Sector Performance: 2003-2008
Table 60 Personal Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 61 Personal Credit Cards Sector Performance: % Growth 2003-2008
Table 62 Personal Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 63 Commercial Credit Cards Sector Performance: 2003-2008
Table 64 Commercial Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 65 Commercial Credit Cards Sector Performance: % Growth 2003-2008
Table 66 Commercial Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 67 Credit Cards: Number of Cards by Issuer 2003-2007
Table 68 Credit Cards: Number of Cards by Operator 2003-2007
Table 69 Credit Cards Transactions by Acquirer 2003-2007
Table 70 Credit Cards Payment Transaction Value by Operator 2003-2007
Table 71 Personal Credit Cards Payment Transaction Value by Operator 2003-2007
Table 72 Commercial Credit Cards Payment Transaction Value by Operator 2003-2007
Table 73 Credit Cards Forecast Sector Performance: 2008-2013
Table 74 Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 75 Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 76 Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 77 Personal Credit Cards Forecast Sector Performance: 2008-2013
Table 78 Personal Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 79 Personal Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 80 Personal Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 81 Commercial Credit Cards Forecast Sector Performance: 2008-2013
Table 82 Commercial Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 83 Commercial Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 84 Commercial Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CHARGE CARD TRANSACTIONS IN THE US
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 85 Charge Cards Sector Performance: 2003-2008
Table 86 Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 87 Charge Cards Sector Performance: % Growth 2003-2008
Table 88 Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 89 Personal Charge Cards Sector Performance: 2003-2008
Table 90 Personal Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 91 Personal Charge Cards Sector Performance: % Growth 2003-2008
Table 92 Personal Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 93 Commercial Charge Cards Sector Performance: 2003-2008
Table 94 Commercial Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 95 Commercial Charge Cards Sector Performance: % Growth 2003-2008
Table 96 Commercial Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 97 Charge Cards: Number of Cards by Issuer 2003-2007
Table 98 Charge Cards: Number of Cards by Operator 2003-2007
Table 99 Charge Cards Transactions by Acquirer 2003-2007
Table 100 Charge Cards Payment Transaction Value by Operator 2003-2007
Table 101 Personal Charge Cards Transaction Value by Operator 2003-2007
Table 102 Commercial Charge Cards Payment Transaction Value by Operator 2003-2007
Table 103 Charge Cards Forecast Sector Performance: 2008-2013
Table 104 Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 105 Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 106 Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 107 Personal Charge Cards Forecast Sector Performance: 2008-2013
Table 108 Personal Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 109 Personal Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 110 Personal Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 111 Commercial Charge Cards Forecast Sector Performance: 2008-2013
Table 112 Commercial Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 113 Commercial Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 114 Commercial Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
GENERAL PURPOSE PRE-PAID CARD TRANSACTIONS IN THE US
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 115 General Purpose Pre-paid Cards Sector Performance: 2003-2008
Table 116 General Purpose Pre-paid Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 117 General Purpose Pre-paid Cards Sector Performance: % Growth 2003-2008
Table 118 General Purpose Pre-paid Cards in Circulation Sector Performance: % Growth 2003-2008
Table 119 General Purpose Pre-paid Cards by Type: % Number of Cards 2004-2008
Table 120 General Purpose Pre-paid Cards: Number of Cards by Operator 2003-2007
Table 121 General Purpose Pre-paid Cards Transaction Value by Operator 2003-2007
Table 122 General Purpose Pre-paid Cards Forecast Sector Performance: 2008-2013
Table 123 General Purpose Pre-paid Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 124 General Purpose Pre-paid Cards Forecast Sector Performance: % Growth 2008-2013
Table 125 General Purpose Pre-paid Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
STORE CARD TRANSACTIONS IN THE US
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 126 Store Cards Sector Performance: 2003-2008
Table 127 Store Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 128 Store Cards Sector Performance: % Growth 2003-2008
Table 129 Store Cards in Circulation Sector Performance: % Growth 2003-2008
Table 130 Store Cards: Number of Cards by Issuer 2003-2007
Table 131 Store Cards Forecast Sector Performance: 2008-2013
Table 132 Store Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 133 Store Cards Forecast Sector Performance: % Growth 2008-2013
Table 134 Store Cards in Circulation Forecast Sector Performance: % Growth 2008-2013