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

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

Synopsis

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 cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including check payments, credit transfers, direct debits, payment cards and cash transactions 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.

Summary

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 cards and payments industry, including:

  • Current and forecast values for each market in the UK cards and payments industry, including debit card, credit and charge cards. It also includes detailed analysis of the prepaid card market.
  • Detailed insights into payment instruments including credit transfers, cash transactions, checks, direct debits and payment cards. It also, includes an overview of the country's key alternative payment instruments.
  • E-commerce market analysis and online payment types.
  • Analysis of various market drivers and regulations governing the UK 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 cards and payments industry.
Scope
  • This report provides a comprehensive analysis of the UK cards and payments industry.
  • It provides current values for the UK cards and payments industry for 2014, and forecast figures to 2019.
  • It details the different demographic, economic, infrastructural and business drivers affecting the UK 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 cards and payments industry.
Reasons To Buy
  • Make strategic business decisions, using top-level historic and forecast market data, related to the UK cards and payments industry and each market within it.
  • Understand the key market trends and growth opportunities in the UK cards and payments industry.
  • Assess the competitive dynamics in the UK 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 cards and payments industry.
Key Highlights
  • The UK government implemented the EU rule on the interchange fee cap effective from December 9, 2015. Under these new rules, the interchange fee for credit and debit cards are capped at 0.3% and 0.2%, respectively. The regulation is anticipated to have a major impact on profitability of the UK's payment cards market. With a reduction in revenue, issuers are likely to cut card offerings and benefits for consumers, and instead look at new ways to generate revenue. One way could be to increase fees levied on debit and credit cards. Alternatively, high-street banks might put an end to free current accounts. The cap on interchange fees is expected to reduce card issuers' revenue from consumer cards, but not commercial cards. Therefore, card issuers are likely to compensate for some of the lost revenue by issuing more commercial charge cards and credit cards.
  • The emergence of digital only banks is likely to accelerate a shift towards electronic payments in the UK. Atom Bank, which was granted a banking license by the Bank of England in June 2015, may become the country's first digital only bank, allowing consumers to conduct banking transactions entirely online and via mobile phones. Other digital-only banks, such as the German-based Fidor Bank, Tandem Bank and Starling Bank, are also making their debut into the market.
  • The UK payment cards market has seen the uptake of contactless technology from 2013 onwards. According to the UK Cards Association, the number of contactless card transactions increased from 1.7 million in 2010 to 319.2 million in 2014. In September 2015 alone, 103.2 million contactless transactions were made, including 89.7 million debit cards and 13.5 million credit and charge cards. One of the key drivers of contactless payments has been its use in London's public transport system. In 2014, there were 17 million contactless payments in bus journeys and 14 million in rail trips. To drive growth in contactless payments, the UK Cards Association increased the spending limit on contactless transactions from the existing US$31.5 (GBP20) to US$47.9 (GBP30) in September 2015. This move is anticipated to further propel contactless transactions in the UK.


  • Definitions and Methodology
    • Definitions
      • Table Key Definitions
    • Methodology
      • Table Annual Average Exchange Rate
  • Key Facts and Events
    • Table The UK - Key Facts, 2014
    • Table Regional Benchmarking of the UK Payment Cards, 2014
  • Executive Summary
  • Payment Instruments
    • Current Payment Environment
  • E-Commerce
    • E-Commerce Market Analysis
  • Alternative Payments
    • Alternative Payment Instruments
      • Apple Pay
      • Samsung Pay
      • bPay
      • PayPal
      • Skrill
      • Visa V.me
      • MasterPass
      • Ukash
      • Paym
      • Pingit
      • Zapper
      • Zapp
      • Starbucks mobile wallet
  • Regulations in the Cards and Payments Industry
    • Regulatory Framework
      • Status of implementation of payment services directive (PSD) in the UK
      • Interchange fee regulation
      • Single European payment area (SEPA) implementation in the UK
      • Best practice guidelines set by the UK payment cards association
    • Anti-Money Laundering (AML)
    • Foreign Direct Investment (FDI) Regulations
      • Table The UK - Mode of Entry of Foreign Banks
  • Analysis of Cards and Payments Industry Drivers
    • Demographic Drivers
    • Economic Drivers
    • Infrastructure Drivers
    • Business Drivers
  • Market Segmentation and New Product Launches
    • Market Segmentation and Targeting
      • Consumer cards
        • Table Cards for High-Income Consumers, 2015
        • Table Cards for Travelers, 2015
        • Table Cards for Students and Young Population, 2015
        • Table Cashback Credit Cards, 2015
        • Table Shopping Reward Point Credit Cards, 2015
        • Table Balance Transfer Credit Cards, 2015
      • Commercial cards
        • Table Commercial Cards Comparison and Key Features, 2015
    • New Product Launches
      • Table The UK - New Product Launches
  • Payment Cards
    • Payment Cards Analysis
      • Volume and value of payment card transactions by type
      • Personal vs commercial cards
      • Contactless payments
        • Table The UK - Contactless Payments, 2010-2015
  • Debit Cards
    • Debit Card Market Analysis
      • Debit card transaction volumes and values by channel
      • Debit card scheme and issuer shares in terms of transaction value
      • Debit cards comparison
        • Table The UK - Debit Cards Comparison and Key Features, 2015
  • Credit Cards
    • Credit Card Market Analysis
      • Credit card transaction volumes and values by channel
      • Credit card scheme and issuer shares in terms of transaction value
      • Credit cards comparison
        • Table The UK - Gold Credit Cards Comparison and Key Features, 2015
        • Table The UK - Premium Credit Cards Comparison and Key Features, 2015
  • Charge Cards
    • Charge Card Market Analysis
      • Charge card transaction volumes and values by channel
      • Charge card scheme shares in terms of transaction value
      • Charge cards comparison
        • Table The UK - Charge Cards Comparison and Key Features, 2015
  • Commercial Cards
    • Commercial Card Market Analysis
      • Commercial cards comparison
        • Table The UK - Commercial Cards Comparison and Key Features, 2015
  • Card Fraud Statistics
    • Card Fraud Analysis
  • Card Issuers
    • Lloyds Bank
    • Barclays Bank
    • The Royal Bank of Scotland
    • HSBC
    • Santander UK
    • American Express
  • Prepaid Cards
    • Prepaid Card Market Analysis
      • Prepaid cards comparison
        • Table The UK - Prepaid Cards Comparison and Key Features, 2015
  • Merchant Acquiring
    • Merchant Acquiring Market Analysis
  • Appendix
    • Tables
      • Table The UK - Payment Instrument Transaction Values (GBP Billion), 2010-2014
      • Table The UK - Payment Instrument Transaction Values (US$ Billion), 2010-2014
      • Table The UK - Payment Instrument Transaction Volumes (Billion), 2010-2014
      • Table The UK - Number of Payment Cards in Circulation by Type (Million), 2010-2019
      • Table The UK - Volume of Payment Card Transactions by Type (Billion), 2010-2019
      • Table The UK - Value of Payment Card Transactions by Type (GBP Billion), 2010-2019
      • Table The UK - Value of Payment Card Transactions by Type (US$ Billion), 2010-2019
      • Table The UK - Personal and Commercial Card Transaction Volumes (Million), 2010-2019
      • Table The UK - Personal and Commercial Card Transaction Values (GBP Billion), 2010-2019
      • Table The UK - Personal and Commercial Card Transaction Values (US$ Billion), 2010-2019
      • Table The UK - Number of Debit Cards in Circulation (Million), 2010-2019
      • Table The UK - Debit Card Transaction Volumes and Frequency by Channel, 2010-2019
      • Table The UK - Debit Card Total and Average Transaction Values by Channel, 2010-2019
      • Table The UK - Number of Debit Cards in Circulation by Scheme (Million), 2010-2014
      • Table The UK - Debit Card Transaction Values by Scheme (GBP Billion), 2010-2014
      • Table The UK - Debit Card Transaction Values by Scheme (US$ Billion), 2010-2014
      • Table The UK - Debit Card Transaction Values by Issuer (GBP Billion), 2010-2014
      • Table The UK - Debit Card Transaction Values by Issuer (US$ Billion), 2010-2014
      • Table The UK - Number of Credit Cards in Circulation (Million), 2010-2019
      • Table The UK - Credit Card Transaction Volumes and Frequency by Channel, 2010-2019
      • Table The UK - Credit Card Total and Average Transaction Values by Channel, 2010-2019
      • Table The UK - Number of Credit Cards in Circulation by Scheme (Million), 2010-2014
      • Table The UK - Credit Card Transaction Values by Scheme (GBP Billion), 2010-2014
      • Table The UK - Credit Card Transaction Values by Scheme (US$ Billion), 2010-2014
      • Table The UK - Pay Later Card Transaction Values by Issuer (GBP Billion), 2010-2014
      • Table The UK - Pay Later Card Transaction Values by Issuer (US$ Billion), 2010-2014
      • Table The UK - Credit Card Balances Outstanding by Issuer (GBP Billion), 2010-2014
      • Table The UK - Credit Card Balances Outstanding by Issuer (US$ Billion), 2010-2014
      • Table The UK - Number of Charge Cards in Circulation (Million), 2010-2019
      • Table The UK - Charge Card Transaction Volumes and Frequency by Channel, 2010-2019
      • Table The UK - Charge Card Total and Average Transaction Values by Channel, 2010-2019
      • Table The UK - Number of Charge Cards in Circulation by Scheme (Thousand), 2010-2014
      • Table The UK - Charge Card Transaction Values by Scheme (GBP Billion), 2010-2014
      • Table The UK - Charge Card Transaction Values by Scheme (US$ Billion), 2010-2014
      • Table The UK - Number of Commercial Cards in Circulation (Million), 2010-2019
      • Table The UK - Commercial Card Transaction Values (GBP Billion), 2010-2019
      • Table The UK - Commercial Card Transaction Values (US$ Billion), 2010-2019
      • Table The UK - Card Fraud (GBP Million), 2010-2014
      • Table The UK - Card Fraud (US$ Million), 2010-2014
      • Table The UK - Number of Prepaid Cards in Circulation (Million), 2010-2019
      • Table The UK - Prepaid Card Transaction Values (GBP Billion), 2010-2019
      • Table The UK - Prepaid Card Transaction Values (US$ Billion), 2010-2019
      • Table The UK - Merchant Acquiring Transaction Volumes by Channel (Billion), 2010-2019
      • Table The UK - Merchant Acquiring Transaction Values (GBP Billion), 2010-2019
      • Table The UK - Merchant Acquiring Transaction Values (US$ Billion), 2010-2019
      • Table The UK - Acquirers' Transaction Volumes (Million), 2010-2014
      • Table The UK - Acquirers' Transaction Values (GBP Billion), 2010-2014
      • Table The UK - Acquirers' Transaction Values (US$ Billion), 2010-2014
      • Table The UK - Retail Outlets and Merchant Accounts (Thousand), 2010-2019
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