United Kingdom (UK) Cards and Payments - Opportunities and Risks to 2026

United Kingdom (UK) Cards and Payments - Opportunities and Risks to 2026

Summary

GlobalData’s ‘United Kingdom (UK) Cards and Payments - Opportunities and Risks to 2026' 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 cards, cash, direct debits, credit transfers, cheques and mobile wallets during the review-period (2018-22e).

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 (2022e-26f). It also offers information on the country's competitive landscape, including market shares of issuers and schemes.

The report brings together GlobalData’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 and recent changes in regulatory structure.

The 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, credit and charge cards.
• Detailed insights into payment instruments including cards, cash, direct debits, credit transfers, cheques and mobile wallets. It also, includes an overview of the country's key alternative payment instruments.
• Ecommerce 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.
• Comprehensive analysis of consumer attitudes and buying preferences for cards.
• The competitive landscape of the UK cards and payments industry.

Scope

• To enhance competition and innovation in the banking and payments space, open banking was rolled out by the Open Banking Implementation Entity (OBIE) in January 2018. This 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). The service covers personal and business current accounts, credit cards, and online electronic money accounts. OBIE is an entity created by the UK’s nine largest personal and small business current account providers, collectively known as CMA9. As of May 2022, there were 339 regulated open banking providers: 249 are third-party providers and 90 are account providers, which includes banks, building societies, and payment companies.
• To improve the flexibility and transparency of bill payments, retail payment authority Pay.UK introduced the Request to Pay messaging service framework in May 2020, enabling businesses and individuals to settle bills. The framework is designed to enable payment services providers to develop interoperable solutions. Companies can utilize the new framework to create Request to Pay propositions. This helps billers request payments for a bill instead of sending conventional invoices. The new framework comprises messaging standards, rules, as well as terms and conditions of Request to Pay services. For each request, consumers can either pay in full or in part; decline the payment; communicate with the biller; or seek extra time. Consumers can choose from several different payment methods. The service does not affect commercial arrangements between biller and payer - it simply carries the request message, including details of how to pay it.
• The proliferation of digital-only banks has helped drive competition in the banking space, thus helping to boost debit card holding. Starling Bank offers a current account with a Mastercard-branded World debit card. The bank also offers Starling Kite and Teen bank accounts for children aged six to 16 and over 16 respectively. Both accounts include a debit card. As of June 2022, Starling Bank had 3 million current accounts, which includes over 460,000 small business accounts. Cashplus - a digital-only bank targeted at small businesses - secured a full banking license in February 2022. It has a customer base of 1.6 million. Meanwhile, US-based JPMorgan Chase launched its digital bank Chase in the UK in September 2021. The bank had reached over 1 million customers as of September 2022.

Reasons to Buy

The report provides top-level market analysis, information and insights into the UK cards and payments industry, including -

• 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.