Are credit cards and debit cards one of the most popular forms of payment?

Around 53% of adults have a credit card and 57% have a debit card- Are consumers comfortable with their level of debt?

Are there major differences in the repayment behaviour of different socio-demographic groups?

Mintel last covered the UK credit card market in August 2000. Due to the implications of the increase in debit card ownership, it has been considered worthwhile to analyse this market alongside that for credit cards this time. Both markets are expanding and can no longer be looked at in isolation. Certainly, the probable implementation of smart cards in the UK in 2002 or 2003 has the potential to unify the various card markets. Between now and then there is probably going to be more convergence.

Are credit cards and debit cards one of the most popular forms of payment?

Around 53% of adults have a credit card and 57% have a debit card- Are consumers comfortable with their level of debt?

Are there major differences in the repayment behaviour of different socio-demographic groups?

Mintel last covered the UK credit card market in August 2000. Due to the implications of the increase in debit card ownership, it has been considered worthwhile to analyse this market alongside that for credit cards this time. Both markets are expanding and can no longer be looked at in isolation. Certainly, the probable implementation of smart cards in the UK in 2002 or 2003 has the potential to unify the various card markets. Between now and then there is probably going to be more convergence.

This report will size both of the markets, in terms of the volume of cards in circulation and the number and value of card transactions being made. It will also look at this in the context of the European marketplace, where credit card penetration is much less marked. This is one reason why so many US entrants have targeted the UK as a potentially lucrative market. We also examine the impact of various factors, such as PDI and consumer credit, on the market. The Key Players section of the report will concentrate on the major providers in both the credit and debit card markets, and indicate which areas companies are concentrating on in their efforts to attract, and also retain, business.

One important aspect of the efforts to gain business is the amount of advertising and promotion taking place, mainly in the credit card market. It is not only the amount of expenditure which is significant, but also the type of promotion being used. Direct marketing, for instance, has been a core element of many companies' advertising campaigns. This is given due consideration in the Advertising and Promotion section of this report.

Of perhaps most importance to providers are the attitudes and opinions of consumers. Which aspects would encourage them to use their cards more often? Are there any major differences in the repayment behaviour of different socio-demographic groups? Are consumers comfortable with their levels of debt? These are all issues covered in The Consumer section of this report.

Other Mintel reports of interest include:

Smart Cards, Finance Intelligence, June 2001

Current Accounts and Personal Loans, Finance Intelligence, January 2001

Affinity and Store Cards, Finance Intelligence, October 2000

Credit Cards, Finance Intelligence, August 2000

POP Finance, Finance Intelligence, April 2000

Affinity and Loyalty Cards, Finance Intelligence, September 2001

Sub-prime Lending, Finance Intelligence, October 2001

Interactive Money Transmission and Banking, Finance Intelligence, November 2001.