1. Market Research
  2. > Financial Services
  3. > Banking
  4. > Payments Market Trends
Payments Landscape in the UK: Opportunities and Risks to 2022 (including Consumer Survey Insights)

Payments Landscape in the UK: Opportunities and Risks to 2022 (including Consumer Survey Insights)

  • March 2019
  • 82 pages
  • ID: 5759616
  • Format: PDF

Summary

Table of Contents

Search Inside

Payments Landscape in the UK: Opportunities and Risks to 2022 (including Consumer Survey Insights)

Summary
The UK payments market is highly mature - arguably even overserved by its financial institutions.There were more debit cards in circulation than individuals in the UK in 2018 by a considerable margin.

Access to formal financial services in the UK is easy and mostly free, leading to a population that is highly comfortable with credit and debit cards both in-store and online.However, there are some notable areas of weakness in the market - the mobile proximity payments market in particular is still underdeveloped, and UK consumers still prefer cash to a certain extent.

Finally, the Brexit referendum result leaves the future of the UK payment market - in terms of economic strength as well as regulatory change - unclear.

Rising pressure on profitability and the growing consumer preference for online banking are driving the concept of digital-only banks in the UK.Atom Bank was the first such bank, and this business model is also used by the likes of Starling Bank, Monzo, and Fidor Bank.

In September 2018, Goldman Sachs’ digital bank Marcus was launched in the UK, followed by Germany-based digital bank N26 in October, allowing customers to carry out all banking tasks 24/7 from any location.

Contactless payments are growing in popularity due to retailers’ extensive deployment of contactless point of sale (POS) terminals, coupled with backing from the big banks and consumer enthusiasm for the convenience of contactless. According to UK Finance there were 118.9 million contactless cards in circulation in the country as of December 2017, up from 58.7 million cards in 2014. The number of contactless payments made in the UK increased by 97% during 2017 to 5.6 billion payments.

Debit and credit cards together account for nearly 49% of all online spending.PayPal, which is the third most popular online tool, is also mainly funded by payment cards.

The convenience of credit cards and the security of PayPal are important factors for UK consumers making online purchases. The e-commerce market registered robust growth, increasing from £103.4bn ($131.9bn) in 2014 to £166.4bn ($212.3bn) in 2018, driven by growing internet and smartphone penetration. Online shopping events such as Black Friday and Cyber Monday helped boost e-commerce sales.

The report "Payments Landscape in the UK: Opportunities and Risks to 2022 (including Consumer Survey Insights)", 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 cash, cards, credit transfers, direct debits, and cheques during the review-period (2014-18e).

The report also analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2018e-22f).It also offers information on the country’s competitive landscape, including market shares of issuers and schemes.

The report brings together 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 and recent changes in regulatory structure.

The report provides -
- Current and forecast values for each market in the UK cards and payments industry, including debit, credit, and charge cards
- Detailed insights into payment instruments including cash, cards, credit transfers, direct debits, and cheques.It also, includes an overview of the country’s key alternative payment instruments
- E-commerce market analysis
- 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

Companies mentioned: Lloyds Banking Group, Barclays, Royal Bank of Scotland, HSBC, Santander UK, Tesco Bank, NatWest, Nationwide, Capital One, Mastercard, Visa, American Express, Diners Club, Worldpay, Barclaycard, Global Payments, Cardnet, Elavon and First Data

Scope
- To enhance competition and innovation in the payment and banking spectrum, the open banking service was rolled out by the Open Banking Implementation Entity (OBIE) in January 2018.

The service allows banks’ customers to give other companies permission to securely access their accounts.Customers can also access a range of services from different types of companies regulated by the Financial Conduct Authority (FCA) or any other European regulator.

The service covers personal and business current accounts, credit cards, and online e-money accounts.OBIE is an entity created by the UK’s nine largest personal and small business current account providers: Barclays, Lloyds Banking Group, Santander, Danske Bank, HSBC, RBS, Bank of Ireland, Nationwide, and AIB Group.

Currently, 25 banks and building societies offer open banking.
- Contactless payments are increasingly being implemented within the country’s transport system. Most recently, in December 2018 Stagecoach - Britain’s biggest bus operator - announced it would accept contactless payments on all of its vehicles. The Stagecoach scheme is the single largest contactless merchant in Europe after Transport for London (TfL). Millions of Stagecoach passengers now have access to contactless bus travel after the company completed the rollout of the technology, which covers 7,400 vehicles operating in England, Scotland, and Wales. Passengers can now pay for their travel with a contactless credit or debit card, as well as Apple Pay and Google Pay.
- To further enhance the use of payment cards, in July 2017 the UK government announced the removal of surcharges on card payments effective from January 13, 2018. Surcharges were commonly levied by merchants in the UK to compensate for merchant service fees. Generally, a surcharge of 2-3% was added to transactions made using payment cards. The removal of surcharges has encouraged consumers to shop more with payment cards, thus driving the volume and value of payment cards.

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.

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 150+ Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
20% Off

($2750)

  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.
Ahmad helps you find the right report:
Testimonials

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at
Ikea

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at
Ingredion

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

FAQ
  • How we can help
    • I am not sure if the report I am interested in will fulfill my needs. Can you help me?
    • Yes, of course. You can call us at +33(0) 4 37 65 17 03 or drop us an email at researchadvisor@reportlinker.com to let us know more about your requirements.
    • We buy reports often - can ReportLinker get me any benefits?
    • Yes. Set up a call with a Senior Research Advisor to learn more - researchadvisor@reportlinker.com or +33(0) 4 37 65 17 03.
    • I have had negative experiences with market research reports before. How can you avoid this from happening again?
    • We advise all clients to read the TOC and Summary and list your questions so that we can get more insight for you before you make any purchase decision. A research advisor will accompany you so that you can compare samples and reports from different sources, and choose the study that is right for you.

  • Report Delivery
    • How and when I will receive my Report?
    • Most reports are delivered right away in a pdf format, while others are accessed via a secure link and access codes. Do note that sometimes reports are sent within a 12 hour period, depending on the time zones. However, you can contact us to escalate this. Should you need a hard copy, you can check if this option is offered for the particular report, and pay the related fees.
  • Payment conditions
    • What payment methods do you accept?
      1. Credit card : VISA, American Express, Mastercard, or
      2. You can download an invoice to pay by wire transfer, check, or via a Purchase Order from your company, or
      3. You can pay via a Check made out in US Dollars, Euros, or British Pounds for the full amount made payable to ReportLinker
    • What are ReportLinker’s Payment Terms?
    • All payments must normally be submitted within 30 days. However, you can let us know if you need extended time.
    • Are Taxes and duties included?
    • All companies based in France must pay a 20% tax per report. The same applies to all individuals based in the EU. All EU companies must supply their VAT number when purchasing to avoid this charge.
    • I’m not satisfied. Can I be refunded?
    • No. Once your order has been processed and the publisher has received a notification to send you the report, we cannot issue any refund or cancel any order. As these are not ‘traditional’ products that can be returned, reports that are dispatched are considered to be ‘consumed’.
  • User license
    • The license that you should acquire depends on the number of persons that need to access the report. This can range from Single User (only one person will have the right to read or access the report), or Department License (up to 5 persons), to Site License (a group of persons based in the same company location), or Corporate License (the entire company personnel based worldwide). However, as publishers have different terms and conditions, we can look into this for you.
Purchase Reports From Reputable Market Research Publishers
Payments Landscape in Slovakia: Opportunities and Risks to 2022

Payments Landscape in Slovakia: Opportunities and Risks to 2022

  • $ 2750
  • March 2019

Payments Landscape in Slovakia: Opportunities and Risks to 2022SummaryThe introduction of an EU-wide cap on interchange fees has also encouraged payment card acceptance among merchants.The average annual ...

Payments Landscape in Russia: Opportunities and Risks to 2022

Payments Landscape in Russia: Opportunities and Risks to 2022

  • $ 2750
  • February 2019

Payments Landscape in Russia: Opportunities and Risks to 2022SummaryThe Russian payment card market evolved at a rapid pace during the review period; it experienced a strong compound annual growth rate ...

Colombia Mobile Wallet and Payment Market Opportunities (Databook Series)

Colombia Mobile Wallet and Payment Market Opportunities (Databook Series)

  • $ 2400
  • January 2019

Colombia Mobile Wallet and Payment Market Opportunities (Databook Series) – Market Size and Forecast across 45+ Market Segments in Mobile Commerce, International Remittance, P2P transfer, Bill Payment, ...


ref:plp2019

Reportlinker.com © Copyright 2019. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.

Make sure you don’t miss any news and follow us on