The report; “Emerging Opportunities in the UK Cards and Payments Industry: Market Size, Trends and Drivers, Strategies, Products and Competitive Landscape” shows that the debit card accounts for the largest share of the industry with a 45.2 per cent share in 2012. The prepaid card follows with 26.1 per cent share overall.
The report also gave projections, suggesting that the prepaid card category will take a 37.7 per cent share of the market. Credit card share is expected to lose market share, declining from 27.6 per cent in 2012 to 21.8 per cent in 2017 at a CAGR of -0.53 per cent. It also focuses on contactless payments and highlights that since being introduced in the UK in 2007, there were almost 23 million contactless cards in circulation in 2012. Recent ruling to increase the spend limit of contactless transactions from GBP15 to GBP20 is predicted to shift further low value transactions to card payments.
Surrey-based SmartDebit, have 20 years’ experience in the payment processing industry. A spokesperson from the firm commented, “The growth of the UK cards and payments industry and the dominance of the debit card over the past few years have been expected. As society continues the transition towards cashless payment methods, and technology continues to evolve, the reliance upon cards will continue to grow. Recent research revealed that 8 per cent of the UK population never withdraw any cash from their bank account, relying solely on their cards or Direct Debit payments”.
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