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UK Point of Sale Finance Market Insight Report 2019

  • ID: 4803183
  • Report
  • Region: United Kingdom, Great Britain
  • 74 Pages
  • Apex Insight
1h Free Analyst Time

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FEATURED COMPANIES

  • Carnegie Consumer Finance
  • Deko (Pay4Later)
  • IKANO Bank AB
  • PayitMonthly Limited
  • Secure Trust Bank Plc
  • Social Money Ltd (Payl8r)
  • MORE

This report focuses on the UK market for point of sale, or POS, finance.

Also known as retail finance, in-store credit or store instalment credit, it refers to loans provided by, or on behalf of, a retailer to enable a consumer to make a specific purchase.

This new edition of the report has been updated and extended to take into account recent growth in the market and to revise our market size estimates and 5-year forecasts.

The report quantifies the market size in loans outstanding, new lending and loan provider revenues, historical growth rates and levels of industry profitability. It also includes an in-depth analysis of the relevant drivers of industry growth setting out historical trends and available forecasts.
 
This report aims to answer a series of questions on the POS finance market:

  • How does the market work? What changes have been recently?
  • What would be the impact of an interest rate rise?
  • Which types of retailers use it most frequently?
  • How does it compare with alterative and substitute forms of finance?
  • What role has new technology played in the market?
  • What is the market size and historical growth rate, in terms of total loans outstanding, new lending and lender revenues?
  • What future growth can be forecast? What are the risks to future market growth?
  • What hard evidence is there to support views of historical and forecast POS finance market growth? What are the POS finance market drivers and how have they trended?
  • How does the market compare with those in other countries?
  • Who are the main finance providers and principals, which are most widely used by retailers, how have they performed?
  • In simple terms, what do they each do, who do they work for and how do they operate?
  • What do the leading UK retailers do to what extent do they use this form of finance, how do usage patterns vary by sector, which providers does each use and what is the extent of churn?
Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • Carnegie Consumer Finance
  • Deko (Pay4Later)
  • IKANO Bank AB
  • PayitMonthly Limited
  • Secure Trust Bank Plc
  • Social Money Ltd (Payl8r)
  • MORE

1. About this report

  • Summary
  • About the author
  • Contents
  • List of charts and tables

2. About the Market

  • POS finance is consumer credit for the purchase of specific goods or services
  • POS finance is provided as unsecured personal loans
  • Overview of market structure
  • Overview of products
  • Zero per cent finance
  • Market size by the number of retailers
  • Physical stores
  • E-Commerce sites
  • Total retailers
  • Medical and associated finance
  • Local case study: Salisbury
  • Regulation of the POS market
  • Regulatory requirements
  • Obtaining FCA authorisations
  • Increasing the use of technology for applications
  • Acceptance rates
  • POS terms offered by leading retailers
  • Adjacent markets include store cards and credit accounts
  • Store cards and credit accounts
  • Credit cards
  • Personal loans
  • Car finance
  • Mobile phone subscriptions
  • International comparisons with Europe, the US and Australia

3. Market size and growth

  • Market size trends
  • Market size since 2013
  • Lender revenues
  • Market drivers
  • Retail sales
  • Internet retail
  • Consumer confidence
  • GDP
  • Credit card penetration and spending
  • Consumer borrowing
  • Interbank rates
  • POS loan books as a proportion of retail sales
  • Lender yields
  • Bad debt rates

4. Competitive landscape

  • Financial performance of the leading operators
  • Overall market shares by lenders
  • Market share by sectors and leading retailers
  • Market share of independent retailers
  • Volumes per independent retailers

5. Broker platform provider profiles

  • Divido Financial Services Ltd.
  • Description
  • History
  • Financials
  • Example clients
  • Klarna
  • Description
  • History
  • Financials
  • Key UK clients
  • Close acquisition
  • Deko (Pay4Later)
  • Description
  • History
  • Product
  • Financials
  • Key clients
  • V12 Retail Finance Ltd
  • Description
  • History
  • Products
  • Finance
  • Key clients
  • TrustaGo.

6. Lender profiles

  • Home Retail Group Card Services Ltd.
  • Description
  • History
  • Financials
  • Recent News
  • Azule Ltd (t/a Azule Finance)
  • Description:
  • Financials:
  • Key Clients:
  • Barclays Partner Finance (Clydesdale Financial Services)
  • Description
  • History:
  • Types of Funding Structures:
  • Financials:
  • Key Clients:
  • BNP Paribas Personal Finance (Creation Consumer Finance Ltd)
  • Description
  • History:
  • Financials:
  • Key POS clients
  • Close Brothers Ltd. (Klarna)
  • Description
  • Financials
  • Key clients:
  • Partners:
  • Hitachi Capital
  • Description
  • History
  • Products
  • Financials
  • Key clients:
  • IKANO Bank AB
  • Description
  • History
  • Financials
  • Key clients
  • OMNI Capital Retail Finance Ltd
  • Description
  • History
  • Financials
  • Products
  • Key clients
  • Paybreak Limited (afforditNOW)
  • Description
  • Products
  • Financials
  • Key clients
  • PayPal
  • Background
  • Products
  • Financials
  • Rematch Credit Limited (DivideBuy)
  • Background
  • Products
  • Financials
  • Customers
  • Secure Trust Bank Plc
  • Description
  • History
  • Products
  • Finance
  • Key clients
  • Shop Direct
  • Description
  • History
  • Products
  • Finance
  • Other lender profiles
  • Caledonian Consumer Finance
  • Carnegie Consumer Finance
  • ClearPay
  • Conister Bank
  • Honeycomb Finance Limited
  • First Senior Finance Limited
  • Lending Works Limited
  • PayitMonthly Limited
  • Payment Assist Limited
  • Shawbrook Bank
  • Snap Finance Ltd. (Pay Weekly)
  • Social Money Ltd (Payl8r)
  • Specialist Lending Ltd (Duologi)
  • Tymit Limited
  • Vanquis Bank

7. Forecasts

  • Key drivers remain broadly favourable
  • Economic growth
  • Consumer borrowing and retail sales growth
  • Inflation
  • Forecast lending levels
  • Market revenue forecasts.
  • Market risks
  • No-deal Brexit
  • Significant interest rate rises
  • Other market risk factors
  • Competitive risk: Amazon
  • List of abbreviations

List of Exhibits

  • Scope of Point of sale (POS) finance market - channels
  • Number of independent stores offering POS finance
  • Usage of POS finance by leading UK retailers/number of retailers per sector vs penetration by sector (2018)
  • Key FCA regulatory requirements relevant to POS finance
  • POS terms offered by leading retailers
  • Lending to relevant segments by FLA members (new business)
  • Loan book size of leading POS loan funding providers / £m
  • New POS lending by year
  • Total market new POS lending / £m
  • Total market POS gross revenues / £m
  • Retail sales / annual % change
  • Internet retail as % of total retail sales
  • UK consumer confidence
  • UK real GDP / % annual changes
  • Number of credit cards in issue, spending on credit cards / m, £bn
  • UK outstanding unsecured consumer credit / £bn
  • Interbank interest rates
  • Combined loan book value as a percentage of retail sales
  • Combine d revenues as % of combined loan book value: top lenders
  • Impairments balance as % of retail POS loan book
  • Leading lender / broker POS finance revenue / £m
  • Revenue growth of top UK POS finance lenders / 2012-latest year CAGR %
  • Latest pre-tax profit margins of leading POS finance companies / %
  • Sector pre-tax margin trends / %
  • POS lenders’ market shares
  • POS firms’ retailer shares
  • Pay4Later Ltd. summary financials
  • V12 Retail Finance Ltd summary financials
  • Home Retail Group Card Services Ltd. summary financials
  • Azule Ltd summary financials
  • Clydesdale Financial Services Ltd summary financials
  • Creation Consumer Finance Ltd summary financials
  • Close Brothers Ltd summary financials
  • Hitachi Capital (UK) Plc summary financials
  • IKANO Bank AB summary financials
  • OMNI Capital Retail Finance Ltd summary financials
  • Secure Trust Bank Plc summary financials
  • Shop Direct Finance Company Limited summary financials
  • Unsecured consumer credit / £bn
  • Retail sales / annual % changes
  • UK Consumer Price Inflation (CPI) / % annual change
  • Combined loan books of leading POS finance lenders as a percentage of retail sales
  • Combined loan books of leading POS finance lenders / £m
  • Total market new POS lending / £m
  • POS finance revenue as a % of the loan book
  • POS finance - forecast market size (aggregate revenues of top lenders) / £m
Note: Product cover images may vary from those shown
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  • Azule Ltd (t/a Azule Finance)
  • BNP Paribas Personal Finance (Creation Consumer Finance Ltd)
  • Barclays Partner Finance (Clydesdale Financial Services)
  • Caledonian Consumer Finance
  • Carnegie Consumer Finance
  • ClearPay
  • Close Brothers Ltd. (Klarna)
  • Conister Bank
  • Deko (Pay4Later)
  • Divido Financial Services Ltd.
  • First Senior Finance Limited
  • Hitachi Capital
  • Home Retail Group Card Services Ltd.
  • Honeycomb Finance Limited
  • IKANO Bank AB
  • Klarna
  • Lending Works Limited
  • OMNI Capital Retail Finance Ltd
  • PayPal
  • Paybreak Limited (afforditNOW)
  • PayitMonthly Limited
  • Payment Assist Limited
  • Rematch Credit Limited (DivideBuy)
  • Secure Trust Bank Plc
  • Shawbrook Bank
  • Shop Direct
  • Snap Finance Ltd. (Pay Weekly)
  • Social Money Ltd (Payl8r)
  • Specialist Lending Ltd (Duologi)
  • TrustaGo
  • Tymit Limited
  • V12 Retail Finance Ltd
  • Vanquis Bank
Note: Product cover images may vary from those shown
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