The UK cards and payments industry has grown at a CAGR of 4.11 percent during the period between 2008 and 2011, a recent study indicates.
According to the “Emerging Opportunities in the UK Cards and Payments Industry: Market Size, Trends and Drivers, Strategies, Products and Competitive Landscape” report, the largest share of the industry was occupied by the debit card category with a 45.2 percent share in 2012, followed by the prepaid card category which accounted for 26.1 percent of the overall industry in 2012.
The same source mentions that in 2017 the prepaid card category is projected to amount to 37.7 percent of the overall industry. Data show that the credit card category share is expected to decline from 27.6 percent in 2012 to 21.8 percent in 2017 at a CAGR of -0.53 percent. The emergence of contactless payments is expected to increase the scope of card based payments in the UK.
Findings also point out that contactless cards were first issued in the UK in 2007 and, as of 2012, there were almost 23 million cards in circulation. Main banks that have rolled out contactless payments include Barclays, Lloyds, Bank of America (MBNA), HSBC and RBS. The emergence of contactless payments has encouraged customers to opt for card based payments. Contactless payments are also expanding to post offices and other retail segments. The recent ruling increasing the price limit of contactless transactions from GBP 15 (USD 24.05) to GBP 20 (USD 32.07) is also expected to shift low value cash based transactions to cards.
The report provides current values for the UK's cards and payments industry and forecast figures for 2017. It also details the different macroeconomic, infrastructural, consumer and business drivers affecting the UK's cards and payments industry.
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