Financial Cards in the United Kingdom
Euromonitor International's Financial Cards in the United Kingdom 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.
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Tables: 107 | Publication date: Mar 2008
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
Financial cards in circulation; Transactions
Executive summary
Economy
Unlike the difficulties facing continental economies, the UK economy continues to perform robustly. Stable interest rates and low unemployment have all served to develop the financial cards industry in the country. However, a combination of higher interest rates, consumer awareness of credit card loan rates and high-profile actions against banks on account of penalty charges have stabilised unsecured lending, and the credit card sector has seen significant declines in 2007. Although consumer confidence has shown no major drop, the combined difficulties of rising house prices for first-time buyers and higher interest rates could yet cause significant problems for players in the credit and store card sectors.
Competition
The UK financial services industry in general continues to be highly competitive. The two major operators appear to be having different fortunes in the credit and debit sectors: whilst MasterCard, for long the weaker operator, has grabbed a share of around 45% of credit cards in circulation and is gaining fast in transactions, Visa is in the ascendancy in debit cards. Credit cards are, however, in a phase of decline for now, whereas debit cards continue to go from strength to strength, and the impact of contactless technology from September 2007 onwards, although to be available on either debit or credit cards, is more likely to increase debit cards' dominance of the market.
Fraud
Although the value lost to fraud from lost or stolen cards has significantly declined from its 2004 peak, there are three areas which will keep fraud in the headlines. The internet has affected fraud levels as the volume of card not present transactions has increased in line with the rise of internet shopping and such fraud accounts for over half of the total. In addition, a parallel development has been the rising of "phishing" whereby criminals set up phoney websites and invite customers to re-enter personal information. Finally, the increasing travel habits of UK cardholders, particularly to regions of the world without robust fraud prevention techniques, means that fraud committed on overseas transactions has been on the rise as well.
Cash versus Cards
With a credit card sector that appears to be saturated and stagnant, the much vaunted "war on cash" is turning the focus to the development of less cash dependence among consumers for smaller purchases under £10 (the limits are somewhat higher in the US and the Euro area). Whilst the benefits to consumers are reasonably self-evident, there could still be resistance among retailers which will either have to upgrade current POS terminal equipment or else install POS terminals for the first time.
Future Trends
Over the medium term financial card usage is likely to expand in the UK with the introduction of smart cards allowing operators to introduce greater functionality and features. Although the credit industry is likely to be flat, the debit sector, be it in the form of contactless payment or mobile payments, will underpin higher usage than is currently the case. There is also some indication that the introduction of pre-pay enabled mobile phones using NFC (Near Field Communication) technology could be another step in the "war against cash" and expand the market further or else cannibalise transactions from yet-to-be introduced contactless cards.
Table of contents
FINANCIAL CARDS IN THE UNITED KINGDOM : MARKET INSIGHT
EXECUTIVE SUMMARY
Economy
Competition
Fraud
Cash versus Cards
Future Trends
KEY TRENDS AND DEVELOPMENTS
Economic State of the Nation
Cards and Infrastructure
Shop Until You Drop
Fraud: Could Do Better?
Travel and Tourism: Overseas Use of Plastic Cards
OPERATING ENVIRONMENT
Consumer Credit and Lending
Issuer Fraud
Acquirer Fraud
E-commerce
M-commerce
ATM and POS Terminals
Cash Withdrawal vs Card Purchase
Governmental Regulation and Legislation
MARKET INDICATORS
Table 1 Number of POS Terminals 2004-2007
Table 2 Number of ATMs 2004-2007
Table 3 Disposable Income 2002-2007
Table 4 Consumer Credit 2002-2007
Table 5 Value Lost to Fraud 2002-2007
MARKET DATA
Table 6 Financial Cards: Transactions 2002-2007
Table 7 Financial Cards: Value 2002-2007
Table 8 Financial Cards: Number of Cards in Circulation 2002-2007
Table 9 Financial Cards: Number of Accounts 2002-2007
Table 10 Domestic versus Foreign Spend 2007
Table 11 Card Expenditure by Sector 2007
Table 12 Card Expenditure by Location 2007
Table 13 Financial Cards: Number of Internet Transactions 2002-2007
Table 14 Financial Cards: Internet Transaction Value 2002-2007
Table 15 Financial Cards: Number of Cards by Issuer 2002-2006
Table 16 Financial Cards: Number of Cards by Operator 2002-2006
Table 17 Financial Cards: Point of Sale Transactions by Acquirer 2002-2006
Table 18 Financial Cards Forecast: Transactions 2007-2012
Table 19 Financial Cards Forecast: Value 2007-2012
Table 20 Financial Cards Forecast: Number of Cards in Circulation 2007-2012
Table 21 Financial Cards: Forecast Number of Accounts 2007-2012
Table 22 Financial Cards Forecast: Number of Internet Transactions 2007-2012
Table 23 Financial Cards Forecast: Internet Transaction Value 2007-2012
DEFINITIONS
Cards by Type
Cardholder Behaviour
Card Expenditure by Sector
Value Lost to Card Fraud
Consumer Credit
Market Background
Sources
Summary 1 Research Sources
LOCAL COMPANY PROFILES - UNITED KINGDOM
GEMALTO UK LTD - FINANCIAL CARDS - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Gemalto UK: Key Facts
Summary 3 Gemalto UK: Operational Indicators 2004-2005
COMPANY BACKGROUND
COMPETITIVE POSITIONING
LLOYDSTSB GROUP PLC - FINANCIAL CARDS - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Lloyds TSB Group Plc: Key Facts
Summary 5 Lloyds TSB Group Plc: Operational Indicators 2004-2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
NATIONWIDE BUILDING SOCIETY - FINANCIAL CARDS - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Nationwide Building Society: Key Facts
Summary 7 Nationwide Building Society: Operational Indicators 2005-2007
COMPANY BACKGROUND
COMPETITIVE POSITIONING
PAYPOINT PLC - FINANCIAL CARDS - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 8 PayPoint PLC: Key Facts
Summary 9 PayPoint Plc: Operational Indicators 2004-2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
TRANSPORT FOR LONDON - FINANCIAL CARDS - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Oystercard: Key Facts
Summary 11 Oystercard: Operational Indicators 2005-2007
COMPANY BACKGROUND
COMPETITIVE POSITIONING
SMART CARDS IN THE UNITED KINGDOM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 24 Smart Cards Sector Performance: 2002-2007
Table 25 Smart Cards Sector Performance: % Growth 2002-2007
Table 26 Smart Cards: Memory vs Microprocessor 2004-2007
Table 27 Smart Cards: Contact vs Contactless 2004-2007
Table 28 Smart Cards: Forecast Sector Performance: 2007-2012
Table 29 Smart Cards: Forecast Sector Performance: % Growth 2007-2012
ATM TRANSACTIONS IN THE UNITED KINGDOM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 30 ATM Cards Sector Performance: 2002-2007
Table 31 ATM Cards Sector Performance: % Growth 2002-2007
Table 32 ATM Cards: Forecast Sector Performance: 2007-2012
Table 33 ATM Cards: Forecast Sector Performance: % Growth 2007-2012
DEBIT TRANSACTIONS IN THE UNITED KINGDOM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 34 Debit Cards Sector Performance: 2002-2007
Table 35 Debit Cards Sector Performance: % Growth 2002-2007
Table 36 Debit Cards: Number of Cards by Issuer 2002-2006
Table 37 Debit Cards: Number of Cards by Operator 2002-2006
Table 38 Debit Cards Transactions by Acquirer 2002-2006
Table 39 Debit Cards Transaction Value by Operator 2002-2006
Table 40 Debit Cards: Forecast Sector Performance: 2007-2012
Table 41 Debit Cards: Forecast Sector Performance: % Growth 2007-2012
CREDIT CARD TRANSACTIONS IN THE UNITED KINGDOM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 42 Credit Cards Sector Performance: 2002-2007
Table 43 Credit Cards Sector Performance: % Growth 2002-2007
Table 44 Personal Credit Cards Sector Performance: 2002-2007
Table 45 Personal Credit Cards Sector Performance: % Growth 2002-2007
Table 46 Corporate Credit Cards: Sector Performance: 2002-2007
Table 47 Corporate Credit Cards: Sector Performance: % Growth 2002-2007
Table 48 Credit Cards: Number of Cards by Issuer 2002-2006
Table 49 Credit Cards: Number of Cards by Operator 2002-2006
Table 50 Credit Cards Transactions by Acquirer 2002-2006
Table 51 Credit Cards Transaction Value by Operator 2002-2006
Table 52 Personal Credit Cards Transactions by Acquirer 2002-2006
Table 53 Personal Credit Cards Transaction Value by Operator 2002-2006
Table 54 Corporate Credit Cards Transactions by Acquirer 2002-2006
Table 55 Corporate Credit Cards Transaction Value by Operator 2002-2006
Table 56 Credit Cards: Forecast Sector Performance: 2007-2012
Table 57 Credit Cards: Forecast Sector Performance: % Growth 2007-2012
Table 58 Personal Credit Cards: Forecast Sector Performance: 2007-2012
Table 59 Personal Credit Cards: Forecast Sector Performance: % Growth 2007-2012
Table 60 Corporate Credit Cards: Forecast Sector Performance: 2007-2012
Table 61 Corporate Credit Cards: Forecast Sector Performance: % Growth 2007-2012
CHARGE CARD TRANSACTIONS IN THE UNITED KINGDOM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 62 Charge Cards Sector Performance: 2002-2007
Table 63 Charge Cards Sector Performance: % Growth 2002-2007
Table 64 Personal Charge Cards Sector Performance: 2002-2007
Table 65 Personal Charge Cards Sector Performance: % Growth 2002-2007
Table 66 Corporate Charge Cards: Sector Performance: 2002-2007
Table 67 Corporate Charge Cards: Sector Performance: % Growth 2002-2007
Table 68 Charge Cards: Number of Cards by Issuer 2002-2006
Table 69 Charge Cards: Number of Cards by Operator 2002-2006
Table 70 Charge Cards Transactions by Acquirer 2002-2006
Table 71 Charge Cards Transaction Value by Operator 2002-2006
Table 72 Personal Charge Cards Transactions by Acquirer 2002-2006
Table 73 Personal Charge Cards Transaction Value by Operator 2002-2006
Table 74 Corporate Charge Cards Transactions by Acquirer 2002-2006
Table 75 Corporate Charge Cards Transaction Value by Operator 2002-2006
Table 76 Charge Cards: Forecast Sector Performance: 2007-2012
Table 77 Charge Cards: Forecast Sector Performance: % Growth 2007-2012
Table 78 Personal Charge Cards: Forecast Sector Performance: 2007-2012
Table 79 Personal Charge Cards: Forecast Sector Performance: % Growth 2007-2012
Table 80 Corporate Charge Cards: Forecast Sector Performance: 2007-2012
Table 81 Corporate Charge Cards: Forecast Sector Performance: % Growth 2007-2012
PRE-PAID CARD TRANSACTIONS IN THE UNITED KINGDOM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 82 Pre-paid Cards Sector Performance: 2002-2007
Table 83 Pre-paid Cards Sector Performance: % Growth 2002-2007
Table 84 Pre-paid Cards: Number of Cards by Issuer 2002-2006
Table 85 Pre-paid Cards: Number of Cards by Operator 2002-2006
Table 86 Pre-paid Cards Transactions by Acquirer 2002-2006
Table 87 Pre-paid Cards Transaction Value by Operator 2002-2006
Table 88 Pre-paid Cards by Type 2004-2007
Table 89 Pre-paid Cards: Forecast Sector Performance: 2007-2012
Table 90 Pre-paid Cards: Forecast Sector Performance: % Growth 2007-2012
STORE CARD TRANSACTIONS IN THE UNITED KINGDOM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 91 Store Cards Sector Performance: 2002-2007
Table 92 Store Cards Sector Performance: % Growth 2002-2007
Table 93 Store Cards: Number of Cards by Issuer 2002-2006
Table 94 Store Cards Transactions by Acquirer 2002-2006
Table 95 Store Cards: Forecast Sector Performance: 2007-2012
Table 96 Store Cards: Forecast Sector Performance: % Growth 2007-2012