Payment Metrics: Consumer Attitudes towards and Usage of Traditional and Emerging Means of Payment in the UK is a study about the way in which consumers currently pay for different products and services and how this is likely to change in future. It covers both established payment means, including different types of payment card, and payment methods that seem set for rapid growth in future, most notably mobile and contactless payments. In addition, consumer behaviour is analysed in the fields of specialised online payments and domestic / international remittances, and the research also addresses two areas that are central to consumers’ choice of payment means: loyalty programs; and insurance and assistance policies linked to added value accounts and payment cards. The report examines how consumers state that they are most likely to pay for small, medium-sized and large irregular purchases at present and also how they report paying for common services that require recurring payments (e.g. cable / satellite TV, electricity, gas or water bills, flat or house rental, travel season tickets etc.). In both cases, it quantifies usage of the following payment means: cash; cheques or postal orders; debit cards; credit or charge cards; rechargeable prepaid cards; and any other means (e.g. mobile or online payments not involving debit, credit or charge cards). Also, for regular payments, it takes into consideration direct debits, standing orders and bank transfers, and distinguishes between rechargeable prepaid cards with multiple usage functions and those usable for one particular service only. You may be able to use this report in one or more of the following ways: - gain access to a complete ‘tool kit’ for organisations with an interest in payments to understand the current behaviour of UK consumers in this huge and diverse sector; - know exactly which types of card are held most widely by consumers and which they report using most often - for example, how does frequency of usage of the many different types of affinity and co-branded card compare to that of regular cards and what differences in utilisation are visible when cards are analysed by function, brand, status and target? - appreciate the extent to which UK consumers are ready to embrace future opportunities to make payments using their mobile phone (and, possibly, other devices such as wristwatches); - understand the typical member profile of the UK’s main loyalty programs and the extent to which each has engaged its members to actually make use of it; - evaluate which forms of insurance and assistance are most likely to enhance the appeal of payment products and which are most likely to be used by consumers in the form of claims or calls for assistance.

Table Of Contents


Executive Summary
Introduction
Payment Types
Payment Cards
Loyalty Programs
Insurance and Assistance
Mobile / Contactless Payments
Online Payments
Domestic / International Remittances
Appendix

List of Graphics / Tables

0.0 EXECUTIVE SUMMARY
A fairly high proportion of respondents are aware of the potential to use mobile phones to make payments...
... although a majority are not currently favourable towards the concept...
... and lack of enthusiasm is especially apparent among female and older customers
Credit or charge cards are used more frequently for payment as size of transaction increases
For recurring transactions, one payment means is dominant in all but one purchase category
Numerous organisations have a fundamental interest in the evolving consumer payments market

1.0 INTRODUCTION
Scope and rationale
Consumers are changing the ways in which they pay for products and services...
... which has important implications for a wide range of different organisations...
... and is already visible from trends in the payments market in recent years
Finaccord
Payment Metrics and other consumer research studies focused on the UK
UK affinity and partnership marketing publications

2.0 PAYMENT TYPES
Introduction
Payment methods for irregular purchases
Low-value purchases (up to £15.00)
Cash remains king for low-value irregular purchases with a value of up to £15.00...
Medium-value purchases (£15.00 - £50.00)
... but is relegated behind debit, credit and charge cards for medium-value purchases
High-value purchases (£50.00 or more)
As a primary means of payment, rechargeable prepaid cards have made little headway in any category
Payment method preferences by age group
Age group variances are determined primarily by orientation to particular purchase value brackets
Payment methods for recurring purchases
Over 50% of respondents make recurring payments across seven categories of expenditure
Direct debits, standing orders and other bank transfers are dominant in the majority of cases
Online payment set-up is used most commonly for all categories needing recurring payments

3.0 PAYMENT CARDS
Introduction
Cards in circulation
Overview
Almost all respondents possess a debit card and well over half a credit, charge or store card
Debit cards
It is likely that over three quarters of debit cards issued carry the Visa marque...
Credit, charge and store cards
... although MasterCard has a narrow lead in the credit card sector
The survey results suggest that approaching 30% of cards are likely to be higher status products...
... with American Express likely to hold a higher market share in the gold and platinum categories
As a percentage of its total card portfolio, business cards are particularly important to American Express...
... meaning that its market share of cards issued in this segment is likely to be higher than that of Visa
MasterCard appears to be substantially stronger than Visa in the market for co-branded cards...
... although the opposite applies in the much smaller market for affinity cards
Supermarkets and other retailers constitute the two most important specific co-branding segments
The co-branding portfolios of the three main payment brands display substantial differences in make-up
The influence of the three payment networks is most even in the hotel chain co-branding segment
In the affinity credit card market, the segment of charity cards is the largest
In the market for football club credit cards, the results suggest a three to one weighting in favour of Visa
Rechargeable prepaid cards
In the market for prepaid cards, the results suggest that MasterCard is well ahead of Visa
Around one third of rechargeable prepaid cards in circulation are either affinity or co-branded products
Once again, MasterCard and Visa appear to have contrasting areas of strength
Many co-branded rechargeable prepaid cards carry brand names created specifically for them
MasterCard is dominant in the key co-branding segment of ‘other organisations’
Charity cards are the most common type of rechargeable prepaid affinity card
Both MasterCard and Visa are active in the market for affinity rechargeable prepaid cards
Card utilisation frequency
Respondents are most likely to report a debit card as their main one
Utilisation rates for Visa debit cards are higher than those for MasterCard / Maestro products...
... although the reverse holds true for credit cards
For rechargeable prepaid cards, the utilisation gap between the two main payment brands is narrower
Although not widely held, ultra high status cards enjoy very high utilisation rates among those that do...
... with a similar assertion applying in the case of business cards, which are rarely left dormant
Among co-branded cards, consumers use retailer or supermarket cards most often as their main ones...
... with charity cards recording a particularly strong performance among types of affinity card
Across all card categories, charity and ultra high status cards record the highest utilisation rates

4.0 LOYALTY PROGRAMS
Introduction
Membership and utilisation
Over 60% of respondents report that they are members of a loyalty program of one sort or another
Loyalty program members are most likely to be female, aged from 55 to 64 and with a high annual income
Three loyalty programs are dominant in terms of their total number of members...
... although two others also claim more than 10% of respondents as members
Most typically, program members are female, aged 47 and with an average annual income of £32,837...
... although substantial differences in member profiles are visible from one program to another
Respondents who belong to the loyalty program of Marks and Spencer appear to be the most engaged
Earning and redemption systems
Cashback is comfortably the most favoured loyalty program earning system
Earning and redemption opportunities across multiple different organisations are generally preferred

5.0 INSURANCE AND ASSISTANCE
Introduction
Packaged policy penetration rates
Breakdown recovery insurance is held most commonly on a packaged basis...
... as a result of rapid growth of added value accounts in recent years
Perceived value
Perceived value among respondents varies greatly by type of insurance or assistance...
... and there is often an apparent disconnect between penetration rate and perceived value
Arguably, the generic product name ‘card protection insurance’ would benefit from an update
Respondents with access to them are most likely to actually make use of concierge services
The survey results also point to a relatively high claims frequency for price protection insurance
Generally speaking, respondents value most what they use most albeit with some exceptions

6.0 MOBILE / CONTACTLESS PAYMENTS
Introduction
Contactless card payments
Less than a quarter of respondents possess a payment card with a contactless functionality...
... and many of those that do have not yet used it to make a contactless payment
Men are significantly more likely to have made a contactless payment than women
Mobile banking
Users of mobile banking services are most likely to be young and male...
... and to be owners of an Apple iPhone
Over a quarter of users of mobile banking check their account balance every day
Mobile payments
Almost three quarters of respondents are aware of the emerging environment for mobile payments
Respondents with an Apple iPhone are most aware and those with an HTC device the least aware
Respondents display mixed feelings towards the concept of using a mobile phone to make payments...
... with females markedly less enthused at the prospect than their male counterparts...
... but with owners of two makes of mobile phone displaying much more interest than the average
Relatively few respondents are sure that their mobile phone is already equipped to make payments
... with some differences again visible when analysed by make of mobile phone used
Consumers are most likely to look to PayPal, Amazon and Visa as providers of mobile payment solutions
Most respondents would prefer mobile payments to be debited directly from their bank account...
... although some younger respondents show an interest in linking such payments to their mobile phone bill
A minority of respondents would favour using a special wristwatch to make contactless payments...

7.0 ONLINE PAYMENTS
Introduction
Frequency of usage of online payment solutions
In terms of usage frequency, PayPal has overtaken direct entry of payment card details
Amazon Payments is also used quite widely but other online payment means lag behind

8.0 DOMESTIC / INTERNATIONAL REMITTANCES
Introduction
Overview
Almost twice as many respondents have a need for domestic remittances as for international remittances
Domestic remittances
PayPal and various types of bank payment are used on a regular basis most often
Sending cash, cheques or postal orders in the post is ranked third by this measure
International remittances
Moneygram and Western Union enjoy more frequent usage in the market for international remittances...
... although PayPal still appears to be dominant
Market shares
PayPal’s approximate market share of international remittances is similar to that for domestic remittances...
... although there are some differences among the competing remittance means

9.0 APPENDIX
Research sample and mechanics
Research methodology and structure

LIST OF GRAPHICS / TABLES
0.0 EXECUTIVE SUMMARY
Close to three quarters of respondents with a mobile phone are aware of the emerging market for mobile payments
Much work remains to be done to convince consumers of the benefits of mobile payments as opposed to other payment means
The market for mobile payments to ‘attack’ in the field of irregular transactions varies by size of purchase...
... and by sector of purchase in the case of regular, recurring payments
1.0 INTRODUCTION

2.0 PAYMENT TYPES
Segmentation of main payment methods used for low-value irregular purchases, 2012
Segmentation of payment methods for medium-value irregular purchases, 2012
Segmentation of payment methods for high-value irregular purchases, 2012
Payment method preferences for all irregular purchases by age group, 2012
Payment method preferences for all irregular purchases by age group, 2012 (table)
Frequency with which consumers make recurring payments for particular services, 2012
Segmentation of payment methods for recurring purchases split by category of purchase, 2012
Segmentation of payment methods for recurring purchases split by category of purchase, 2012 (table)
Segmentation of payment interfaces used to set up recurring purchases split by type of purchase, 2012
Segmentation of payment interfaces used to set up recurring purchases split by type of purchase, 2012 (table)

3.0 PAYMENT CARDS
Percentage of respondents holding debit cards, credit / charge / store cards and rechargeable prepaid cards, 2012
Implied market share of debit cards in circulation of MasterCard / Maestro and Visa, 2012
Percentage of respondents holding American Express, Diners Club, MasterCard, Visa and private label credit, charge or store cards, 2012
Implied market share of credit, charge and store cards in circulation of American Express, Diners Club, MasterCard, Visa and private label, 2012
Credit, charge and store cards in circulation segmented by standard, gold, platinum and ultra high status and by card brand / network, 2012
Implied market share of standard, gold, platinum and ultra high status credit, charge and store cards in circulation of American Express, Diners Club, MasterCard, Visa and private label, 2012
Credit, charge and store cards in circulation segmented by standard, gold, platinum and ultra high status and by card brand / network, 2012 (table)
Credit, charge and store cards in circulation segmented by consumer and business cards and by card brand / network, 2012 (table)
Implied market share of consumer and business credit, charge and store cards in circulation of American Express, Diners Club, MasterCard, Visa and private label, 2012
Credit, charge and store cards in circulation segmented by consumer and business cards and by card brand / network, 2012 (table)
Credit, charge and store cards in circulation segmented by mono-branded, co-branded and affinity cards and by card brand / network, 2012 (table)
Implied market share of mono-branded, co-branded and affinity credit, charge and store cards in circulation of American Express, Diners Club, MasterCard, Visa and private label, 2012
Credit, charge and store cards in circulation segmented by mono-branded, co-branded and affinity cards and by card brand / network, 2012 (table)
Co-branded credit cards in circulation segmented by co-brand category and by card brand / network, 2012
Implied market share, segmented by co-brand category, of co-branded credit cards in circulation of American Express, MasterCard and Visa, 2012
Co-branded credit cards in circulation segmented by co-brand category and by card brand / network, 2012 (table)
Affinity credit cards in circulation segmented by affinity category and by card brand / network, 2012 (table)
Implied market share, segmented by affinity category, of affinity credit cards in circulation of MasterCard and Visa, 2012
Affinity credit cards in circulation segmented by affinity category and by card brand / network, 2012 (table)
Percentage of respondents holding MasterCard, Visa and private label rechargeable prepaid cards, 2012
Implied market share of rechargeable prepaid cards in circulation of MasterCard, Visa and private label, 2012
Rechargeable prepaid cards in circulation segmented by mono-branded, co-branded and affinity cards and by card brand / network, 2012 (table)
Implied market share of mono-branded, co-branded and affinity rechargeable prepaid cards in circulation of MasterCard, Visa and private label, 2012
Rechargeable prepaid cards in circulation segmented by mono-branded, co-branded and affinity cards and by card brand / network, 2012 (table)
Co-branded rechargeable prepaid cards in circulation segmented by co-brand category and by card brand / network, 2012
Implied market share, segmented by co-brand category, of rechargeable prepaid cards in circulation of MasterCard and Visa, 2012
Co-branded rechargeable prepaid cards in circulation segmented by co-brand category and by card brand / network, 2012 (table)
Affinity rechargeable prepaid cards in circulation segmented by affinity category and by card brand / network, 2012
Implied market share, segmented by affinity category, of affinity rechargeable prepaid cards in circulation of MasterCard and Visa, 2012
Affinity rechargeable prepaid cards in circulation segmented by affinity category and by card brand / network, 2012 (table)
Card utilisation frequency by card function, 2012
Card utilisation frequency by card function, 2012 (table)
Card utilisation frequency by card function and brand / network, 2012
Card utilisation frequency by card function and brand / network, 2012 (table)
Credit, charge and store card utilisation frequency by card status, target and type, 2012
Credit, charge and store card utilisation frequency by card status, target and type, 2012 (table)
Co-branded and affinity credit and charge card utilisation frequency by co-brand and affinity type, 2012
Co-branded and affinity credit and charge card utilisation frequency by co-brand and affinity type, 2012 (table)
Ranking of card categories (function, brand / network, status, target, type) by score for card utilisation frequency, 2012

4.0 LOYALTY PROGRAMS
Membership of loyalty programs by program type, 2012
Membership of loyalty programs by program type and by gender, age group and annual household income, 2012
Membership of specific loyalty programs and degree of utilisation of each among all respondents, 2012
Membership of specific loyalty programs and degree of utilisation of each among all respondents, 2012 (table)
Gender, age and annual household income profiles of respondents belonging to specific loyalty programs, 2012 (table)
Degree of utilisation of specific loyalty programs among respondents belonging to each program, 2012
Degree of utilisation of specific loyalty programs among respondents belonging to each program, 2012 (table)
Preferred loyalty program earning systems of respondents, 2012
Preference of respondents for earning and redemption opportunities across a single organisation or multiple different organisations, 2012

5.0 INSURANCE AND ASSISTANCE
Penetration rates for insurance and assistance policy types linked to added value accounts and payment cards, 2012
Penetration rates for insurance and assistance policy types linked to added value accounts and payment cards, 2012 (table)
Perceived value among respondents of insurance and assistance types linked to added value accounts and payment cards, 2012
Perceived value among respondents of insurance and assistance types linked to added value accounts and payment cards, 2012 (table)
Relationship between penetration rates for insurance and assistance policy types linked to added value accounts and payment cards and their perceived value among respondents, 2012
Claims / utilisation frequency among respondents for insurance and assistance policy types linked to added value accounts and payment cards, 2012
Claims / utilisation frequency among respondents for insurance and assistance policy types linked to added value accounts and payment cards, 2012 (table)

6.0 MOBILE / CONTACTLESS PAYMENTS
Possession and utilisation among respondents of contactless payment cards issued by banks, segmented by gender and age group, 2012
Awareness and utilisation among respondents of contactless payment cards issued by banks, segmented by gender and age group, 2012 (table)
Utilisation among respondents of mobile banking, segmented by gender and age group, 2012
Utilisation among respondents of mobile banking, segmented by gender and age group, 2012 (table)
Utilisation among respondents of mobile banking, segmented by make of mobile phone owned, 2012
Utilisation among respondents of mobile banking, segmented by make of mobile phone owned, 2012 (table)
Frequency of utilisation of mobile banking functions among respondents utilising mobile banking, 2012
Frequency of utilisation of mobile banking functions among respondents utilising mobile banking, 2012 (table)
Awareness among respondents with a mobile phone that opportunities to utilise mobile phones to make payments are likely to increase in future, segmented by gender and age group, 2012
Awareness among respondents that opportunities to utilise mobile phones to make payments are likely to increase in future, segmented by gender and age group, 2012 (table)
Awareness among respondents with a mobile phone that opportunities to utilise mobile phones to make payments are likely to increase in future, segmented by make of mobile phone used, 2012
Awareness among respondents that opportunities to utilise mobile phones to make payments are likely to increase in future, segmented by make of mobile phone used, 2012 (table)
Receptiveness among respondents with a mobile phone towards the concept of using mobile phones to make payments, segmented by gender and age group, 2012
Receptiveness among respondents with a mobile phone towards the concept of using mobile phones to make payments, segmented by gender and age group, 2012 (table)
Receptiveness among respondents with a mobile phone towards the concept of using mobile phones to make payments, segmented by make of mobile phone used, 2012
Receptiveness among respondents with a mobile phone towards the concept of using mobile phones to make payments, segmented by make of mobile phone used, 2012 (table)
Possession among respondents of mobile phones already enabled to make payments, segmented by gender and age group, 2012
Possession among respondents of mobile phones already enabled to make payments, segmented by gender and age group, 2012 (table)
Possession among respondents of mobile phones already enabled to make payments, segmented by make of mobile phone used, 2012
Possession among respondents of mobile phones already enabled to make payments, segmented by make of mobile phone used, 2012 (table)
Degree to which respondents with a mobile phone would naturally consider using 25 major consumer-facing organisations as a source of mobile payment solutions, 2012
Degree to which respondents with a mobile phone would naturally consider using 25 major consumer-facing organisations as a source of mobile payment solutions, 2012 (table)
Billing or debit methods preferred among respondents with a mobile phone for settling payments made by mobile phone, segmented by gender and age group, 2012
Billing or debit methods preferred among respondents with a mobile phone for settling payments made by mobile phone, segmented by gender and age group, 2012 (table)
Preference of respondents for using a special wristwatch rather than a mobile phone or payment card for making contactless payments, segmented by gender and age group, 2012
Preference of respondents for using a special wristwatch rather than a mobile phone or payment card for making contactless payments, segmented by gender and age group, 2012 (table)

7.0 ONLINE PAYMENTS
Frequency of usage of different online payment means, 2012
Frequency of usage of different online payment means, 2012 (table)

8.0 DOMESTIC / INTERNATIONAL REMITTANCES
Frequency of need for paying individuals at home and abroad without being able to meet them in person, 2012
Frequency of usage of different means of making domestic remittances among respondents needing to pay individuals at home without being able to meet them, 2012
Frequency of usage of different means of making domestic remittances among respondents needing to pay individuals at home without being able to meet them, 2012 (table)
Frequency of usage of different means of making international remittances among respondents needing to pay individuals abroad without being able to meet them, 2012
Frequency of usage of different means of making international remittances among respondents needing to pay individuals abroad without being able to meet them, 2012 (table)
Approximate market shares of competing remittance means for domestic and international remittances, 2012
9.0 APPENDIX

View This Report »

Find all the market research you need - instantly, in one place.

+1.2 Million Research Documents & Statistics +200,000 Trusted Public Sources 350 Industries With Global Coverage

24/7 Customer Support

Talk to Louis

+1 718 618 4302

Purchase Reports From Reputable Market Research Publishers

Global Gaming Market Software, Hardware, Smart Phones, Computers, Animation)-Analysis, competitive landscape, Strategy, Overview, Size, regional analysis, Share, Global Trends, Opportunities, Segmentation and Forecast 2014-2020

Global Gaming Market Software, Hardware, Smart Phones, Computers, Animation)-Analysis, competitive landscape, Strategy, Overview, Size, regional analysis, Share, Global Trends, Opportunities, Segmentation and Forecast 2014-2020

  • $ 7 000
  • Industry report
  • November 2014
  • by Occams

Computer animation is the generation of animated images using computer graphics. CGI or computer generated imagery includes both static and dynamic images within its purview. Over the years computer animation ...

The NEPs' automation and SON solutions: review of vendor solutions and CSP strategies

The NEPs' automation and SON solutions: review of vendor solutions and CSP strategies

  • $ 3 999
  • Industry report
  • November 2014
  • by Analysys Mason

Network planning and optimisation (NPO) processes will need to evolve towards a high degree of intelligent automation so that network resource utilisation can be maximised in near-real time. This report ...

3Q.2014 Global Mobile Entertainment Market Forecast, 2009 - 2019

3Q.2014 Global Mobile Entertainment Market Forecast, 2009 - 2019

  • $ 2 995
  • Industry report
  • October 2014
  • by IE Market Research Corp.

IEMR's Global Mobile Entertainment Market Forecast provides a comprehensive forecast of global, regional, and country-specific mobile entertainment usage among consumers in 50+ countries and regions. Fo ...


ReportLinker is an award-winning market research solution that finds, filters and organizes the latest industry data so you get all the market research you need - quickly, in one place.