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UK Plastic Cards 2008 Product Image

UK Plastic Cards 2008

  • ID: 661431
  • September 2008
  • Region: United Kingdom, Great Britain
  • 213 pages
  • Datamonitor

UK Plastic Cards 2008 provides an overview of the key trends and issues facing the UK card market. Intense competition, regulatory compliance and rising interest rates and a deteriorating economic situation have all challenged issuers in 2007-08. This report provides in depth coverage of these and other issues, along with full data for the credit, charge, debit, and private label card markets.

Scope

- This report provides full market data for the UK credit, charge, debit, and private label card markets for the period 1998-2007.

- Competitor market share data for the credit card market is provided, by cards in issue and balances outstanding, for the period 2003-2007.

- Includes an extensive analysis of the impact of the economic downturn on the UK payment cards market.

- Forecasts for the credit, debit, charge, and private label markets are provided for the period 2008-2012

Highlights of this title

The total value of transactions made on charge, credit, debit and private label cards once again grew from the previous year, reaching £540 billion, an increase of 8.3% or £42.3 billion from 2006. The main driver of this growth was READ MORE >

Overview 1
Catalyst 1
Summary 1
Executive Summary 2
Introduction 2
UK Plastic Card Market in Review and Future Outlook 3
The UK plastic card market continued to grow in 2007 and this trend is set to continue 3
A deteriorating economic situation poses many threats for credit card issuers 4
Market Statistics and Key Trends 4
There are now more debit cards than credit cards 4
The number of credit cards has been in decline since 2005 4
Private label cards have been in decline since 2003 5
Forecasting the UK Payment Card Market 6
Regulatory developments in the UK Plastic Card Market 7
The UK card market continues to face regulatory intervention at the national level 7
Competitor market shares and developments in the UK Plastic Card market 8
Visa remains the largest debit brand in the UK 8
MasterCard has become the leading credit card scheme 8
RBS remains the largest player in the UK credit card market by cards in issue 9
Product Design in the UK - What can be learnt from abroad? 10
Non-standard credit cards in the UK 11
The non-standard market refers to consumers who are not considered for credit by mainstream issuers 11
13
Table of figures 14
Table of tables 15
UK Plastic Card Market in Review and Future Outlook 16
Introduction 16
Payments cards have gained importance in the UK payments landscape 16
The UK plastic card market continued to grow in 2007 and this trend is set to continue 17
Card spending is equal to 63% of the value of retail sales 19
This has been manifested in the increased use of payment cards 20
Datamonitor forecasts that the value of payment card spending will reach £750 billion in 2012 21
The credit crunch and the economic slowdown have created a headache for credit card issuers 23
A deteriorating economic situation poses many threats for credit card issuers 23
A dramatic fall in consumer confidence has underpinned issuers worries 25
While optimism about future employment fades, there are mixed views on spending 26
House prices, the cornerstone of consumer spending for the last decade, have started to fall 26
Unemployment has started to rise, further repressing spending and lowering sentiment 27
However, the level of personal insolvencies in the UK appears to be falling 28
The credit card market has been robust so far in 2008, in the face of falling consumer confidence 29
Credit card transactions have been steady so far in 2008 29
After two years of falling outstandings, credit card debt is on the rise again 31
The strong performance of the card market in the first half of 2008 could be masking some dangerous developments 32
Falling levels of consumer confidence appears to be boosting credit card spending in the near term, but could spell trouble 33
Having peaked in 2004, the value of balance transfers continues to fall 35
Datamonitor believes the outlook for card issuers hinges on employment 37
The outlook for issuers really hinges on the level of employment 37
The consumer confidence index does not appear to be reflected in consumer behavior 37
The fall in house prices should be seen in the context of the bigger picture 39
Personal insolvencies are continuing to fall 39
Datamonitor is cautiously optimistic about the outlook for the UK cards market 39
Market Statistics and Key Trends 40
Credit and debit cards continue to dominate the market in terms of issuance 40
There are now more debit cards than credit cards 40
The number of credit cards has been in decline since 2005 40
Private label cards have been in decline since 2003 40
Multiple cardholding continues to be an important feature of the market 42
Within the credit card market, the number of co-branded and premium cards grew at the expense of standard varieties from 2003-07 42
The private label card market remains in decline 44
Limited acceptance and card limits-and consequently usage-have severely restricted issuer profitability 45
Datamonitor Cards and Payments Team view 47
Debit cards continue to account for the lions share of card activity 48
More than 76% of all plastic card transactions were made by debit card in 2007 48
Debit cards are the most frequently used card product 49
In 2007, over two thirds of the value of total plastic card transactions were accounted for by debit cards 51
Average transaction values are highest on charge cards 53
Card turnover is highest on charge cards, however, debit cards enjoy the greatest total activity per adult 54
UK consumers have shown a growing willingness to use plastic cards for payments and when abroad 55
UK consumers are using payment cards for more purchase transactions than ever before 55
This trend is most evident in the debit card market 56
Credit cards have traditionally been used for purchases 58
Purchases dominate transactions abroad but cash acquisition transactions are growing in importance 59
By 2007, debit and credit cards counted for equal shares of the value of payments abroad 60
Growth in online commerce represents a major opportunity 61
The increase in card use has been bolstered by the expanding infrastructure 62
The growth in the number of ATMS has been fueled by the independent sector 63
However, the number of fraudulent transactions is on the rise again 63
The successful introduction of chip & pin has led to growth of card-not-present fraud 64
The value of fraudulent transactions has slightly risen to £535 million 65
Summary 66
Forecasting The UK Payment Card Market 67
Datamonitors forecast for the UK plastic card market 67
Datamonitor forecasts annual growth in the value of payment card transactions of 5.9% to 2012 67
Datamonitors forecasting model assesses the relationship of macroeconomic factors with respect to consumer credit products 69
Datamonitor bases its neutral view on forecasts provided by the Treasury 69
Forecasting the credit card market 70
Datamonitor forecasts annual growth in the credit card market of 2.0% to 2012 70
Under an optimistic view of future economic performance, Datamonitor forecasts an annual growth of 2.9% 72
Under a pessimistic view of future economic performance, Datamonitor forecasts annual growth of 0.7% 76
Forecasting the charge card market 79
Datamonitor forecasts annual growth in the charge card market of 1.8% to 2012 79
Forecasting the debit card market 81
Datamonitor forecasts annual growth in the debit card market of 7.6% to 2011 81
Forecasting the private label card market 83
Datamonitor forecasts that the private label card market will decline at an annual average rate of 5.1% to 2012 83
Regulatory Developments in the UK Payment Card Market 85
The UK card market continues to face regulatory intervention at the national level 85
The Banking Code was revised in March 2008 following OFTs call for greater information to be provided with credit card cheques 85
The consultation on the issue of credit card cheques by relevant parties involved began in November 2005 86
Datamonitor Cards and Payments Team view 87
Store card providers have begun to reduce default fees but the OFTs investigation into overdraft default fees may still have further implications for issuers 87
Datamonitor Cards and Payments Team view 88
The CCA 2006 has extended protection offered to consumers and was enacted in April 2008 88
The focus of CCA concerns provision of information to consumers 89
Datamonitor Cards and Payments Team view 91
The Competition Commission published its provisional findings on the sale of payment protection insurance 91
The investigation into PPI started when the OFT referred its report to the Competition Commission 92
The FSA has been independently investigating the sale of PPI since 2005 and has imposed penalties on several players 93
Datamonitor Cards and Payments Team view 95
The Payment Systems Task Force was wound up in November 2006 and replaced with the UK Payments Council 95
The work of the PSTF covered access and governance of the LINK ATM network 96
The PSTF did not pursue its investigation into the access and governance of UK card schemes 97
The OFT has vowed to continue its investigations into multilateral interchange fees but no progress has been made at the national level 98
Background to interchange and its regulation 99
Interchange is one of five key revenue streams for the industry 99
Merchants are behind the downward pressure on interchange 100
Interchange is a hugely important source of revenue for issuers in the UK 101
The OFTs current interest in domestic interchange began when MasterCard applied for an exemption from the UK Competition Act 1998 102
In its September 2005 ruling, the OFT accepted the need for a collective agreement on interchange, but objects to what it sees as extraneous costs 103
In response to this finding, MasterCard, backed by the rest of the industry, lodged an appeal with the CAT 104
Datamonitor Cards and Payments Team view 105
The UK card market also continues to face regulatory intervention at the international level 106
At the European level the EC came down against MasterCards intra-EEA multilateral interchange fees 106
The EC also found that MIF might stand in the way of the creation of SEPA 106
Understandably, MasterCard appealed the European ruling on interchange 107
The European Commission also initiated formal proceedings against Visa Europe 107
Visa is ready to negotiate a settlement with the EC regarding its cross-border MIFs 108
Datamonitor Cards and Payments Team view 108
The European CCD promises to make further changes to regulation in the UK 108
The changes that have been made to the calculation for the APR will see headline rates rise in the UK 109
Timeline of the directive 109
The revised proposal has seen changes to a number of key areas, but the commitment to maximum harmonization in some areas remains 111
Other areas of the directive remain unchanged from its previous form 113
Despite positive intentions there are key problems with the directive 113
Datamonitor Cards and Payments Team view 114
The European banking industry continues to work towards the creation of SEPA 115
For a number of years the EC has pushed to create a single payments area 115
Yet the threat of further regulation pushed the industry to take steps to self-regulate 116
At the end of 2004, the EPC issued a roadmap to 2010 118
However, there are signs that regulators are becoming frustrated with the slow progress of the banks in regards to SEPA 118
In March 2006, the EPC published a second version of its Cards Framework 118
After missing the original deadline, banks have agreed a new SEPA start date 119
Datamonitor Cards and Payments Team view 119
Competitor Market Shares and Developments in the UK Plastic Card Market 120
Introduction 120
Card scheme market shares 120
Visa remains the largest debit brand in the UK 120
The market share of fully authorized debit cards has fallen 121
Visa is also the leading debit scheme in terms of cards in issue 121
MasterCard has become the leading credit card scheme 121
American Express is now the largest scheme in the charge card market 122
Card issuer market shares 123
RBS remains the largest player in the UK credit card market by cards in issue 123
Barclaycard remains the biggest issuing brand in the market 124
The dominance of the big banks has been challenged by specialist issuers 125
The dominance of MBNA could decline in the next year if Santander launches its own products 125
Meanwhile some of the bigger players are snapping up smaller portfolios 126
MBNA remains the largest issuing group by outstandings 126
GE Money continues to dominate the private label market 127
Card issuer Developments in the UK Market 129
At a market level, issuers and schemes are looking to expand card payments into new areas and improve card features 129
Visa is looking to target direct debit payments 129
Visa is also looking to increase the functionality of its cards 129
Meanwhile, payment cards face competition from online payments 130
Fears over the state of the UK economy have hampered consolidation 130
Discover has exited the UK market due to challenging conditions 130
Despite tough conditions in the market, players are still competing hard on price 132
Standard APRs vary considerably from issuer to issuer 132
Issuers compete on the length of the interest free balance transfer period 133
Issuer strategy becomes clearer when APRs, balance transfers and receivables are examined together 134
Issuers are also focusing more on niche areas to grow their businesses 135
Offering premium products allows issuers to differentiate their products 135
Environmental concerns are driving the development of "green" products 137
Co-branding continues to be at the forefront of issuers strategies 138
Issuers have been especially active in the web-based sector 138
Issuers are still exploring opportunities in the prepaid cards sector 139
Norwich Union and TSYS announced a prepaid rewards card pilot 140
Barclays launched a gift card for Christmas 140
Contactless cards have gained popularity in the market 140
MBNA and MasterCard bring contactless payment to Manchester City FC 140
Foodservice company EAT installs Visa contactless payments system 141
The role of the mobile telephone in banking and payments continues to evolve 142
Both Barclays and RBS have both introduced mobile banking services 142
Product Design in the UK - What can be Learnt from Abroad? 144
Introduction 144
Account management is of increasing importance to issuers 144
One way of encouraging good account management is to reward on time payments 145
In the US, Discover launched the Motiva card, that rewards on time payments 145
In Australia, ANZ Bank has also launched a product that incentivizes the paying off of balances 146
Aside from reward programs, issuers can encourage disciplined account management through other product features 147
In the US, Wal-Mart has introduced a prepaid card to help families budget 149
Issuers can also help cardholders by making it easier to make payments 149
In the US, both Citi and Bank of America have introduced mobile banking services 149
Cards and Payments Teams view on cards that reward good account management 150
Issuers in North America have been innovative in linking card products to long-term financial commitments 151
One issue with this type of reward scheme is the compatibility of the mortgages of other financial services providers 152
In Canada, MBNA and MCAP launched a co-brand card 153
In the US, the largest mortgage lender has launched a credit card product 153
In a related move, in the US American Express has launched a product that allows cardholders to pay their monthly mortgage repayments from their American Express card 154
Cards and Payments Teams view on cards that are linked to mortgage products 155
Customer segmentation is an area in which UK issuers could learn from foreign issuers 155
Issuers in several countries have launched card products that are aimed specifically at men and women 156
In Greece, Citibank has launched a credit card aimed at male card owners 156
In Australia ANZ Bank has launched a website for its female customers 156
In the US, American Express has issued a series of cards based on location 156
Cards and Payments Team view on segmenting customers 156
The next step from customer segmentation is product individualization 157
Some foreign issuers allow cardholders to put a photograph of their choice on the card 157
Spanish and Nordic issuers have been particularly innovative in this area 157
Cards and Payments Team view on customizing card appearance 158
Issuers in the Middle East continue to have impressive personalized loyalty systems, assisted by chip based technology 158
Mashreqbanks WOW! Card rewards repeat purchases rather than transactional loyalty 159
Cards & Payments Team view on the individualization of loyalty products 161
A final way to customize a payment card is to allow cardholders to select their own pricing structure 162
In the US, Capital Ones Card Lab allows cardholders to create their ideal card 162
Cards and Payments Team view on products that allow cardholders to select their own price structures 163
Summary 164
Non-Standard Credit Cards in the UK 165
Introduction 165
The non-standard market refers to consumers who are not considered for credit by mainstream issuers 165
The non-standard market covers the sub-prime sector 166
The term non-standard covers a wide range of perceived risk 167
Despite the risks involved, the non-standard market has proved an attractive market to certain issuers in the UK 168
Careful segmentation and risk management is the key 169
Issuers in the non-standard segment face greater risks but charge a higher interest rate 169
Issuers in the non-standard space mitigate their risk with lower credit limits 170
Intense competition has led to decreasing margins and profitability in the mainstream market 170
Datamonitor estimates that the non-standard market in the UK consists of 7.1 million adults and six million credit cards 171
Datamonitor uses seven steps to size the UK non-standard population 171
Step one: the number of people in the UK of working age 171
Step two: absence of a bank account 171
Step three: unemployment 171
Step four: income support claimants 172
Step five: CCJs 172
Step six: mortgage arrears and repossessions 172
Step seven: self-employment with less than three years of proof of income 173
Elimination of double counting 173
Datamonitor estimates that there are seven million adults in the UK that fall into the non-standard category 174
Changes in employment status proved the key driver for the recent increase in the population 175
The number of registered CCJs looks likely to increase in 2008 176
Mortgage repossessions and arrears are rising 178
Personal bankruptcies peaked in 2006, but now appear to be falling 178
Payments in arrears are at a high 179
Mainstream issuers have been tightening their criteria 180
Datamonitor estimates that there are 6.0 million credit cards issued to non-standard individuals in the UK 180
Datamonitors methodology might overestimate the number of non-standard cards in issue 181
Self-employment and having a CCJ account for over half of the non-standard cards in issue 181
Average cardholding is lower in the non-standard segment 182
The value of transactions on non-standard credit cards amounted to £9 billion in 2007 183
Datamonitors estimation methodology 183
Datamonitor estimates that the value of transactions on non-standard cards reached £9.0 billion in 2007 184
The market is composed of mainstream and specialist providers 184
Capital One, HBOS, Barclaycard and RBS are all active in this market 185
Several mainstream players have acquired specialist lenders in order to gain the expertise needed to issue in this market 186
There are several advantages to this approach, as compared to direct market entry 187
Mainstream players have used different branding strategies to enter this market 187
Market entry through a subsidiary allows mainstream issuers to protect their prime brands 188
However, most issuers have stayed faithful to their prime brands 189
Other specialist issuers target the lower end of the non-standard spectrum 190
Profile: SAV Credit 190
Profile: Vanquis Bank 192
Non-standard specialist lenders are benefiting as a result of mainstream lenders tightening their issuing criteria 195
For example, Vanquis has continued to grow rapidly and become profitable 195
SAV Credit has expanded by inorganic growth 195
As a result, non-standard specialist providers are confident about the future 195
It is likely that other firms will eventually enter the non-standard market 196
Datamonitor forecasts moderate growth in the non-standard credit card market 196
Datamonitor forecasts that the value of transactions on non-standard cards will grow at a CAGR of 7.2% 196
Datamonitors estimation methodology 196
Datamonitor forecasts the value of non-standard credit card transactions to reach £12.7 billion by 2012 197
Growth will be fastest among those with checkered or limited credit histories 199
A number of factors are forecast to drive growth in the non-standard credit card market 199
Summary 202
APPENDIX 203
Supplementary data 203
Definitions 203
AAGR 203
APACS 203
Average transaction value 203
Balances outstanding 203
Bank of England base rate 203
CAGR 203
Charge card 203
Credit card 204
CVV 204
Debit card 204
EMV 204
Fraudulent use of card details (card-not-present fraud), also known as fraud on phone, mail order or internet transactions 204
Interchange 204
Non-standard 205
OFT 205
Methodology 205
Primary research 205
Secondary research 205
Further reading 206
Ask the analyst 206
Datamonitor consulting 207
Disclaimer 207
List of Tables
Table 1: Growth in the UK payment card market, 2003-07 18
Table 2: Datamonitors five-year forecast for the UK plastic card market, 2008-12 22
Table 3: Number of UK payment cards in issue by type, 2003-07 41
Table 4: Credit cards in issue in the UK by type, 2003-07 (000s) 44
Table 5: Number of transactions made on UK-issued payment cards by product line, 2003-07 49
Table 6: Frequency of transaction by card type in the UK, 2003-07 51
Table 7: Value of UK-issued plastic card transactions by product line, 2003-07 52
Table 8: Average value of UK-issued plastic card transactions by product line, 2003-07 54
Table 9: Datamonitors forecast for the UK plastic card market, 2007-12. 68
Table 10: Forecast performance of the UK consumer credit market drivers under the neutral scenario, 2007-12 69
Table 11: Datamonitors five-year forecast for the UK credit card market, 2007-11 70
Table 12: Market drivers for the UK credit card market under Datamonitors forecasting scenario, 2002-11 (1/2) 71
Table 13: Market drivers for the UK credit card market under Datamonitors forecasting scenario, 2002-11 (2/2) 72
Table 14: Datamonitors five-year forecast for the UK credit card market under an optimistic scenario, 2008-12 73
Table 15: Forecast performance of the UK consumer credit market drivers under the optimistic scenario, 2007-12 73
Table 16: Market drivers for the UK credit card market under an optimistic scenario, 2003-12 75
Table 17: Datamonitors five-year forecast for the UK credit card market under a pessimistic scenario, 2008-12 76
Table 18: Forecast performance of the UK consumer credit market drivers under the pessimistic scenario, 2007-12 77
Table 19: Market drivers for the UK credit card market under an pessimistic scenario, 2003-12 78
Table 20: Datamonitors five-year forecast for the UK charge card market, 2008-12 79
Table 21: Market drivers for the UK charge card market under Datamonitors forecasting scenario, 2003-12 80
Table 22: Datamonitors five-year forecast for the UK debit card market, 2008-12 81
Table 23: Market drivers for the UK debit card market under Datamonitors forecasting scenario, 2003-12 82
Table 24: Datamonitors five-year forecast for the UK private label card market, 2008-12 83
Table 25: Market drivers for the UK private label card market under Datamonitors forecasting scenario, 2003-12 84
Table 26: Consolidation activity in the UK credit card market, 2001-05 131
Table 27: A selection of credit cards from non-standard to premium, 2008 170
Table 28: Number of mortgage repossessions and arrears, 2003-07 178
Table 29: Cardholding per person in the mainstream and non-standard sectors, 2003-07 183
Table 30: SAV Credit fact file, 2008 190
Table 31: Vanquis Bank fact file, 2008 192
Table 32: APRs for Vanquis credit card products. 2008 194
Table 33: Datamonitors forecast for the non-standard credit card market, 2007-12 198
Table 34: Non-standard population forecast, 2007-2012f 200
Table 35: Value of online spending in the UK, 1998-2007, (£m) 203
Table 36: Current relevant Datamonitor publications, 2008 206
Table 37: Future relevant Datamonitor publications, 2008 206
List of Figures
Figure 1: The value of transactions made on UK-issued plastic cards has grown at a compound average rate of 8.3% from 2003-07 3
Figure 2: Debit cards are the most common type of credit card in the UK 5
Figure 3: The value of transactions is expected to grow at a compound rate of 5.9% to 2012 7
Figure 4: Visa debit brands have grown within the UK market, 2003-07 8
Figure 5: MasterCard became the leading issuer of credit cards in the UK in 2007 9
Figure 6: RBS remains the biggest issuer in the UK at the group level, 2007 10
Figure 7: The number of non-standard cards has grown from 4.3 million to 6.0 million, 2003-2007 12
Figure 8: The proportion of total consumer transaction value accounted for by cards has increased, 2003-2007 17
Figure 9: The value of transactions made on UK-issued plastic cards has grown at a compound average rate of 8.3% from 2003-07 18
Figure 10: Plastic cards account for a growing share of UK retail sales, 1998-07 20
Figure 11: Increased frequency of use has been the key driver of the UK card market, 2003-07 21
Figure 12: Datamonitor forecasts that the value of transactions made on UK-issued payment cards will grow at a CAGR of 6.1% from 2008-12 22
Figure 13: Credit card issuers derive revenue from a range of activities 24
Figure 14: Consumer confidence in the UK has plummeted to new depths, 2004-2008 26
Figure 15: UK property prices have witnessed a sharp correction since the end of 2007 27
Figure 16: After a decade of decline unemployment in the UK appears to be rising again, 2008 28
Figure 17: The number of individual insolvencies in the UK has fallen since mid-2007 29
Figure 18: The value of credit card expenditure has remained broadly constant in 2007 and 2008 30
Figure 19: After two years of decline, credit card lending has started to grow again, 2003-2008 31
Figure 20: The value of credit card debt has remained approximately constant as a proportion of consumer credit, 2003-2007 32
Figure 21: Credit card spending has grown as confidence has fallen away, 2007-2008 33
Figure 22: In 2008, consumers have been reducing their overdrafts quicker than their card debt 35
Figure 23: The value of balances transferred has fallen during 2004-2008 36
Figure 24: Retail sales have been remarkably resilient, 2004-2008 38
Figure 25: Debit cards are the most common type of credit card in the UK 41
Figure 26: Average cardholding in the UK has grown over time, despite a fall in credit card holding since 2005 42
Figure 27: The number of platinum cards has grown at the expense of standard and gold cards, 2003-07 43
Figure 28: The UK private label market continues to struggle, 2003-07 45
Figure 29: More than 75% of all plastic card transactions in the UK were made by debit card in 2007 49
Figure 30: Debit cards are used for more transactions per card than any other type of payment card in the UK, 2003-07 50
Figure 31: Debit cards account for over two-thirds of the value of plastic card transactions, 2003-07 52
Figure 32: The value of the average charge card transaction is close to double that of the market average, 2003-07 54
Figure 33: Charge cards enjoy the highest turnover per card, but spend per adult is greatest on debit cards in the UK, 2007 55
Figure 34: Purchase transactions account for a growing share of total card transaction values in the UK, 2003-07 56
Figure 35: Purchases account for a growing share of debit card transaction values in the UK, 1998-2007 57
Figure 36: More than 80% of credit card transaction values are used for purchases, 1998-2007 58
Figure 37: Purchases account for the majority of transactions abroad, but cash acquisition is growing in importance, 1998-2007 59
Figure 38: Debit cards are increasingly used in transactions abroad, 1998-2007 60
Figure 39: UK online retail spending has grown dramatically, 1998-2007 61
Figure 40: Growth in the UK acceptance network has seen the ratio of population to terminals decline, 2003-07 62
Figure 41: Growth in the number of ATMs in the UK has been driven by the increase in the number of independently owned ATMS, which has reduced the ration of population to ATMs 63
Figure 42: Card fraud began to rise again in 2007 64
Figure 43: Card-not-present fraud accounts for more than half of fraudulent transactions on cards issued in the UK, 2003-2007 65
Figure 44: Card not present fraud also accounts for more than half the value of fraudulent transactions 66
Figure 45: The value of transactions is expected to grow at a compound rate of 5.9% to 2012 68
Figure 46: Organization chart of the EPC, 2006 117
Figure 47: Visa debit brands have grown within the UK market, 2003-07 120
Figure 48: MasterCard became the leading issuer of credit cards in the UK in 2007 122
Figure 49: American Express has become increasingly prevalent in the charge card market, 2003-2007 123
Figure 50: RBS remains the biggest issuer in the UK at the group level, 2007 124
Figure 51: Barclaycard is the most prolific credit card brand in the UK 125
Figure 52: MBNA remains the largest issuing group by outstandings, 2007 127
Figure 53: GE Money continues to account for the majority of private label cards in the UK, 2007 128
Figure 54: Barclaycard and RBS have the lowest APRs of the top five groups, 2003 - 2008 133
Figure 55: Most issuers offer a balance transfer period of about 12 months, 2003-2008 134
Figure 56: Issuer strategy varies considerably, August 2008 135
Figure 57: The Manchester City prepaid card allows season ticket holders to make purchases at the ground 141
Figure 58: EAT has installed contactless payments in its busier outlets 142
Figure 59: Both RBS and Barclays have introduced mobile banking services 143
Figure 60: The Discover Motiva card rewards on time payments, 2008 145
Figure 61: The ANZ Balance Visa rewards cardholders for paying off their balance, 2008 147
Figure 62: The Wal-Mart prepaid Visa card helps consumers manage limited funds, 2008 149
Figure 63: Credit cards linked to mortgage products can present a powerful proposition to homeowners, 2008 152
Figure 64: The MCAP card helps cardholders to reduce their mortgage terms, 2008 153
Figure 65: The Countrywide Visa can save cardholders more than $11,000 over ten years, 2008 154
Figure 66: La Caixa allows cardholders to personalize cards with their own photographs, 2008 158
Figure 67: Chips allow merchants to encourage repeat business, 2008 160
Figure 68: Chips can bring together a range of offers to make a compelling customer loyalty offering 161
Figure 69: Applicants can select their card features using Capital Ones Card Lab, 2008 163
Figure 70: The non-standard sector encompasses a range of consumers 166
Figure 71: The sub-prime market accounts for just one part of the non-standard market 167
Figure 72: The non-standard population covers a spectrum of risk prospects from the near prime to the heavy sub-prime 168
Figure 73: The UK non-standard population has increased significantly in the last two years 175
Figure 74: CCJs and Mortgage Arrears contributed to the decrease in non-standard individuals, but was balanced by an increase in unemployment, 2003-2007 176
Figure 75: After a decade of decline, CCJs are now rising again, 1987-2008 177
Figure 76: Bankruptcies peaked in 2006, but now appear to be falling 179
Figure 77: The number of non-standard cards has grown from 4.3 million to 6.0 million, 2003-2007 181
Figure 78: Self-employment and having a CCJ account for over two-thirds of the cards in the possession of non-standard individuals, 2007 182
Figure 79: The non-standard sector accounts for a growing proportion of transaction values, 2003-07 184
Figure 80: Several mainstream players have an offering in the non-standard market, 2008 186
Figure 81: The table of figures is an optional section and can be removed 188
Figure 82: SAV cross-sells other financial products on its website 192
Figure 83: Datamonitor expects the value of transactions to grow at a CAGR of 7.2%, 2007-12 198
Figure 84: The non-standard population will increase steadily over the next five years, 2007-2012f 200

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