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Plastic Cards - Ireland - July 2014

"The downturn of credit cards in issue in Ireland, and growth in the level of debit card usage highlights that increasingly Irish consumers are living within their means and reducing their reliance on credit. Moving forward this could see credit card providers add more incentives to their offerings to help drive usage."
– Brian O'Connor, Production Manager

This report looks at the following issues:

  • Has the downturn affected the number of plastic payments cards in issue?
  • What is holding back the use of plastic cards?
  • Is the government levy holding back credit card ownership in RoI?
  • Have consumers embraced contactless payment technology?
  • When and how do consumers use their plastic payment cards?

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Table of contents

  1. Introduction

      • Key themes in the report
        • Data sources
          • Definitions
            • Abbreviations
            • Executive Summary

                • The market
                  • A fall in the number of credit cards in issue…
                    • Figure 1: Number of credit cards in issue, IoI, RoI and NI, 2009-14
                  • … but debit cards have increased by more than a third in five years
                    • Figure 2: Number of debit cards in issue, IoI, RoI and NI, 2009-14
                  • Forecast
                    • Figure 3: Indexed number of credit cards in issue, IoI, RoI and NI, 2009-19
                    • Figure 4: Indexed number of debit cards in issue, IoI, RoI and NI, 2009-19
                  • Market factors
                    • Economic recovery firmly under way both in RoI and NI
                      • Continued growth in online shopping will increase card use
                        • Fraud on plastic cards still a problem for consumers and the industry
                          • Debit cards being used more often for low-value, everyday transactions
                            • Cash still the preferred payment method for low-value transactions
                              • Cheques still common but seemingly on the way out
                                • The consumer
                                  • Debit cards the most widely-owned type of plastic payment card
                                    • Figure 5: Number of plastic cards currently held (including those jointly held), by card type, RoI and NI, April 2014
                                  • Most consumers claim not to have a contactless payment card
                                    • Figure 6: Ownership and intended ownership of contactless debit and credit cards, RoI and NI, April 2014
                                  • Plastic cards used for all occasions – regular and irregular, large and small
                                    • Figure 7: Agreement with statement relating to plastic cards, RoI and NI, April 2014
                                  • What we think
                                  • Issues and Insights

                                      • Has the downturn affected the number of plastic payments cards in issue?
                                        • The facts
                                          • The Implications
                                            • What is holding back the use of plastic cards?
                                              • The facts
                                                • The implications
                                                  • Is the government levy holding back credit card ownership in RoI?
                                                    • The facts
                                                      • The implications
                                                        • Have consumers embraced contactless payment technology?
                                                          • The facts
                                                            • The implications
                                                              • When and how do consumers use their plastic payment cards?
                                                                • The facts
                                                                  • The implications
                                                                  • Trend Application

                                                                    • Help Me Help Myself
                                                                      • Prepare for the Worst
                                                                        • Mintel Futures: Generation Next
                                                                        • Market Overview

                                                                          • Key points
                                                                            • RoI economy now firmly in recovery mode
                                                                              • Figure 8: Economic outlook, annual % change, RoI, 2012-15
                                                                              • Figure 9: Unemployment %, actual and forecast, RoI, 2013-15
                                                                            • NI economy on course to grow by around 2.3% in 2014
                                                                              • Figure 10: Economic outlook, NI, 2012-15
                                                                              • Figure 11: Employment rate, NI, 2012-15
                                                                            • Majority of consumers’ finances are ‘healthy’ or ‘OK’
                                                                              • Figure 12: Financial health of Irish consumers, NI and RoI, April 2014
                                                                            • Consumer sentiment on the up, suggesting increased spending
                                                                              • Figure 13: Consumer confidence, RoI, June 2009-June 2014
                                                                              • Figure 14: Consumer confidence, NI, September 2008-March 2014
                                                                            • Growth in online shopping resulting in increased plastic card use
                                                                              • Figure 15: Indexed value of online and mobile retail sales (€bn), NI and RoI, 2009-19
                                                                              • Figure 16: Frequency of online shopping, NI and RoI, March 2014
                                                                            • Fraud still a major challenge for users of plastic payment cards
                                                                              • Figure 17: Annual fraud losses on UK-issued plastic cards, £ millions, 2004-13
                                                                            • Fraud to turnover ratio still relatively low in the UK (incl. NI)
                                                                              • Figure 18: Fraud to turnover ratio, UK (including NI), 2004-14
                                                                            • Plastic card fraud down 21% in RoI in 2012 to €20.4 million
                                                                              • Figure 19: Annual fraud losses on RoI-issued plastic payment cards, € million, 2008-13
                                                                            • Greater APR incentive for RoI consumers to switch credit card provider
                                                                              • Figure 20: APR % on credit card purchases, main providers, RoI, July 2014
                                                                              • Figure 21: Representative APR %, selected credit card products and providers, NI, July 2014
                                                                              • Figure 22: Average credit card interest rate, %, UK (including NI), 2007-13
                                                                            • NI consumers can benefit from extended 0% terms for balance transfers
                                                                              • Rewards and cashback not a prominent feature of RoI credit card market
                                                                                • Do reward schemes encourage greater use of credit card?
                                                                                  • Figure 23: Attitudes towards reward schemes among credit card users with rewards, UK, June 2013
                                                                                • Reward schemes or cashback offers are not for everyone
                                                                                  • Figure 24: Attitudes towards reward schemes among credit card users without rewards, UK, June 2013
                                                                                • Debit cards becoming increasingly informal and ‘everyday’
                                                                                  • Figure 25: Average transaction value by payment method, £, UK (including NI), 2009-13
                                                                                  • Figure 26: Average transaction value, debit cards, €, 2006-13
                                                                              • Competitive Context

                                                                                • Key points
                                                                                  • No sign of cashless society coming anytime soon
                                                                                    • Figure 27: Percentage of turnover by number of transactions, UK (including NI), 2013
                                                                                    • Figure 28: Percentage of turnover by number of transactions, UK (including NI), 2009-13
                                                                                  • Cash accounts for 28% of value of all transactions in UK (including NI)
                                                                                    • Figure 29: Percentage of turnover by value of transactions, UK (including NI), 2013
                                                                                    • Figure 30: Percentage of turnover by value of transactions, UK (including NI), 2009-13
                                                                                  • Cash holds strong – but generally declining – position in RoI society
                                                                                    • Figure 31: Selected data on ATMs and cash use, RoI, 2009-13
                                                                                  • The challenges to reducing cash use among consumers
                                                                                      • Figure 32: cost of collection, pence per transaction, selected payment methods, UK (incl. NI), 2012
                                                                                    • Cheque usage down significantly on peak year of 2005 in RoI
                                                                                      • Figure 33: Volume of cheques used, RoI, 2009-13
                                                                                      • Figure 34: Value of cheques (and other paper instruments), € billion, RoI, 2006-13
                                                                                    • Half a billion cheques cleared in UK in 2013, worth more than £500 billion
                                                                                      • Figure 35: Volume of cheques cleared, UK (including NI), 2011-13
                                                                                      • Figure 36: Value of cheques cleared, UK (including. NI), 2011-13
                                                                                    • Volume and value of electronic credits seems to have levelled
                                                                                      • Figure 37: Volume of electronic credits and debits, millions, RoI, 2006-13
                                                                                      • Figure 38: Value of electronic debits and credits, € billion, RoI, 2006-13
                                                                                      • Figure 39: Volume and value of direct debits and direct credits, UK (including NI), 2011-13
                                                                                  • Market Size and Forecast

                                                                                    • Key points
                                                                                      • Slight increase in number of credit cards in issue in 2014
                                                                                        • Figure 40: Number of credit cards in issue, millions, RoI and NI, 2009-19
                                                                                      • Number of credit cards in issue to return to 2009 levels by 2019
                                                                                        • Figure 41: Index of credit cards in issue, IoI, NI and RoI, 2009-19
                                                                                      • An estimated 6 million debit cards in issue in Ireland in 2014
                                                                                        • Figure 42: Number of debit cards in issue, millions, RoI and NI, 2009-19
                                                                                      • Strong growth in debit cards expected for coming years
                                                                                        • Figure 43: Index of debit cards in issue, IoI, NI and RoI, 2009-19
                                                                                      • In European terms, RoI consumers have relatively few plastic cards
                                                                                        • Figure 44: Average number of plastic payment cards per capita, selected European countries, 2012
                                                                                        • Figure 45: Average number of card payments per capita, selected European countries, 2012
                                                                                    • Strengths and Weaknesses

                                                                                      • Strengths
                                                                                        • Weaknesses
                                                                                        • Companies and Innovations

                                                                                          • Key points
                                                                                            • Innovations
                                                                                              • BBVA launches HCE mobile based NFC payments
                                                                                                • The rise of Bitcoin
                                                                                                  • Barclaycard announce plans to launch bPay wristband
                                                                                                    • Credit and Debit card providers
                                                                                                      • AIB (Allied Irish Banks)
                                                                                                          • Figure 46: AIB plastic cards, 2014
                                                                                                          • Figure 47: First Trust Bank plastic cards, 2014
                                                                                                        • Barclaycard
                                                                                                            • Figure 48: Barclaycard plastic cards, 2014
                                                                                                          • Bank of Ireland
                                                                                                              • Figure 49: Bank of Ireland plastic cards, 2014
                                                                                                            • Capital One
                                                                                                                • Figure 50: Capital One plastic cards, 2014
                                                                                                              • Danske Bank
                                                                                                                  • Figure 51: Danske Bank plastic cards, 2014
                                                                                                                • Halifax
                                                                                                                    • Figure 52: Halifax plastic cards, 2014
                                                                                                                  • HSBC
                                                                                                                      • Figure 53: HSBC plastic cards, 2014
                                                                                                                    • KBC Bank Ireland
                                                                                                                        • Figure 54: KBC Bank Ireland plastic cards, 2014
                                                                                                                      • MBNA Group
                                                                                                                          • Figure 55: MBNA plastic cards, 2014
                                                                                                                        • Nationwide
                                                                                                                            • Figure 56: Nationwide plastic cards, 2014
                                                                                                                          • Permanent TSB
                                                                                                                              • Figure 57: Permanent TSB plastic cards, 2014
                                                                                                                            • Santander
                                                                                                                                • Figure 58: Santander plastic cards, 2014
                                                                                                                              • Ulster Bank
                                                                                                                                  • Figure 59: Ulster Bank plastic cards, NI, 2014
                                                                                                                                  • Figure 60: Ulster Bank plastic cards, RoI, 2014
                                                                                                                                • Store card providers
                                                                                                                                  • Tesco Bank
                                                                                                                                      • Figure 61: Tesco plastic cards, NI, 2014
                                                                                                                                      • Figure 62: Tesco plastic cards, RoI, 2014
                                                                                                                                    • Home Retail Group
                                                                                                                                        • Figure 63: Home Retail Group plastic cards, 2014
                                                                                                                                      • Ikano Group
                                                                                                                                          • Figure 64: Ikano Group plastic cards, NI, 2014
                                                                                                                                        • Charge card providers
                                                                                                                                          • American Express
                                                                                                                                              • Figure 65: American Express plastic cards, NI, 2014
                                                                                                                                              • Figure 66: American Express plastic cards, RoI, 2014
                                                                                                                                            • Diners Club
                                                                                                                                                • Figure 67: Diners Club plastic cards, 2014
                                                                                                                                              • Pre-paid card providers
                                                                                                                                                • O2
                                                                                                                                                    • Figure 68: O2 plastic cards, 2014
                                                                                                                                                  • Payzone
                                                                                                                                                      • Figure 69: Payzone plastic cards, 2014
                                                                                                                                                  • The Consumer – Ownership of Plastic Cards

                                                                                                                                                    • Key points
                                                                                                                                                      • Debit cards most widely-owned type of plastic cards
                                                                                                                                                        • Figure 70: Number of plastic cards currently held (including those jointly held), by card type, RoI and NI, April 2014
                                                                                                                                                      • Majority of debit card holders have just one debit card
                                                                                                                                                        • Figure 71: Number of debit cards currently held (including those jointly held), RoI and NI, April 2014
                                                                                                                                                        • Figure 72: Number of current accounts owned, RoI and NI, November 2013
                                                                                                                                                      • Prudency of debit cards appeals to consumers
                                                                                                                                                        • Figure 73: Agreement with statement ‘Debit cards are more useful than credit cards for living within my means’, RoI and NI, April 2014
                                                                                                                                                      • AIB and BOI dominate RoI’s debit card market
                                                                                                                                                        • Figure 74: Financial institutions that consumers currently hold debit cards with, RoI and NI, April 2014
                                                                                                                                                      • Credit card ownership lowest among women, 18-24s and C2DEs
                                                                                                                                                          • Figure 75: Consumers who do not have a credit card, by gender, age and socio-economic background, RoI and NI, April 2014
                                                                                                                                                        • Multiple credit card ownership higher among NI than RoI consumers
                                                                                                                                                          • Figure 76: Number of credit cards currently held (including those jointly held), RoI and NI, April 2014
                                                                                                                                                        • Multi-card ownership highest among men, older consumers and ABC1s
                                                                                                                                                          • Figure 77: Consumers who have two credit cards, RoI and NI, April 2014
                                                                                                                                                        • Significantly more competition among credit card providers in NI
                                                                                                                                                            • Figure 78: Financial institutions that consumers currently hold credit cards with, RoI and NI, April 2014
                                                                                                                                                          • Pre-paid still a niche product among Irish consumers
                                                                                                                                                            • Figure 79: Number of pre-paid cards currently held (including those jointly held), RoI and NI, April 2014
                                                                                                                                                          • Costs attached to pre-paid cards seem to be main obstacle to greater use
                                                                                                                                                              • Figure 80: Agreement with the statement ‘I’m concerned about the charges incurred on pre-paid cards’, UK, March 2014
                                                                                                                                                            • Pre-paid cards most popular among younger consumers
                                                                                                                                                              • Figure 81: Consumers who have one pre-paid card (including those jointly held), by age and gender, RoI, April 2014
                                                                                                                                                            • O2 Money and Payzone the two big players in pre-paid cards
                                                                                                                                                              • Figure 82: Financial institutions that consumers currently hold pre-paid cards with, RoI and NI, April 2014
                                                                                                                                                            • Store cards appeal most to women and 18-24s
                                                                                                                                                              • Figure 83: Agreement with statement, ‘I prefer store cards because they offer additional benefits (eg. rewards points, cashback etc), by gender and age, RoI and NI, April 2014
                                                                                                                                                          • The Consumer – Contactless Cards

                                                                                                                                                            • Key points
                                                                                                                                                              • Majority of Irish consumers claim not to have a contactless card
                                                                                                                                                                • Figure 84: Whether consumers say they have/do not have contactless debit/credits, RoI and NI, April 2014
                                                                                                                                                              • Divided interest among those who claim to have contactless cards
                                                                                                                                                                • Figure 85: Ownership and intended ownership of contactless debit and credit cards, RoI and NI, April 2014
                                                                                                                                                              • Women and 45+ most likely to say ‘don’t have and don’t want’
                                                                                                                                                                • Figure 86: Agreement with statement ‘I do not have a contactless card and would not be interested in having one’, by gender and age, RoI and NI, April 2014
                                                                                                                                                              • Men and ABC1s (in NI) most likely to say ‘don’t have, do want’
                                                                                                                                                                • Figure 87: Agreement with the statement, ‘I do not have a contactless debit/credit card but would be interested in having one’, by gender and socio-economic background, RoI and NI, April 2014
                                                                                                                                                              • High Internet users and 25-34s most likely to be contactless users
                                                                                                                                                                • Figure 88: Agreement with statement ‘I have a contactless debit/credit card and have used it to make a payment’, by age and daily Internet usage, RoI and NI, April 2014
                                                                                                                                                            • The Consumer – How Plastic Cards are Used

                                                                                                                                                              • Key points
                                                                                                                                                                • Plastic cards for big things, small things and when abroad
                                                                                                                                                                    • Figure 89: Agreement with statement relating to plastic cards, RoI and NI, April 2014
                                                                                                                                                                  • Use of plastic cards for big spending highest among ABC1s
                                                                                                                                                                    • Figure 90: Agreement with statement, ‘I use plastic payment cards to pay for large/expensive items (eg holiday bookings)’, by age and socio-economic background, RoI and NI, April 2014
                                                                                                                                                                  • … but the gap is narrower when it comes to everyday spending
                                                                                                                                                                    • Figure 91: Agreement with statement, ‘I use plastic payment cards for everyday expenditures (eg groceries)’, by age and socio-economic background, RoI and NI, April 2014
                                                                                                                                                                  • Benefits of plastic when abroad most valued by ABC1s and 35+
                                                                                                                                                                    • Figure 92: Agreement with statement, ‘I prefer to use my debit or credit card when abroad than to pay with cash’, RoI and NI, April 2014
                                                                                                                                                                  • Financial protection valued most highly by older consumers
                                                                                                                                                                    • Figure 93: Agreement with statement, ‘I use plastic payment cards for financial protection in case things go wrong (eg not receiving goods, retailers going bankrupt)’, by age, RoI and NI, April 2014
                                                                                                                                                                  • Hard-pressed consumers giving up additional cards
                                                                                                                                                                    • Figure 94: Agreement with statement, ‘I have reduced the number of plastic payment cards that I own in the last 12 months’, RoI and NI, April 2014
                                                                                                                                                                  • Significant minority pay off credit card balance each month
                                                                                                                                                                    • Figure 95: Agreement with statements relating to money management and credit, RoI and NI, April 2014
                                                                                                                                                                • Appendix

                                                                                                                                                                  • NI Toluna tables
                                                                                                                                                                    • Figure 96: Number of credit cards currently held (including those jointly held), by demographics, NI, April 2014
                                                                                                                                                                    • Figure 97: Number of debit cards currently held (including those jointly held), by demographics, NI, April 2014
                                                                                                                                                                    • Figure 98: Number of store cards currently held (including those jointly held), by demographics, NI, April 2014
                                                                                                                                                                    • Figure 99: Number of charge cards currently held (including those jointly held), by demographics, NI, April 2014
                                                                                                                                                                    • Figure 100: Number of pre-paid cards currently held (including those jointly held), by demographics, NI, April 2014
                                                                                                                                                                    • Figure 101: Financial institution consumers currently hold credit cards with, by demographics, NI, April 2014
                                                                                                                                                                    • Figure 102: Financial institution consumers currently hold credit cards with, by demographics, NI, April 2014 (continued)
                                                                                                                                                                    • Figure 103: Financial institution consumers currently hold credit cards with, by demographics, NI, April 2014 (continued)
                                                                                                                                                                    • Figure 104: Financial institution consumers currently hold debit cards with, by demographics, NI, April 2014
                                                                                                                                                                    • Figure 105: Financial institution consumers currently hold debit cards with, by demographics, NI, April 2014 (continued)
                                                                                                                                                                    • Figure 106: Financial institution consumers currently hold debit cards with, by demographics, NI, April 2014 (continued)
                                                                                                                                                                    • Figure 107: Financial institution consumers currently hold store cards with, by demographics, NI, April 2014
                                                                                                                                                                    • Figure 108: Financial institution consumers currently hold charge cards with, by demographics, NI, April 2014
                                                                                                                                                                    • Figure 109: Financial institution consumers currently hold pre-paid cards with, by demographics, NI, April 2014
                                                                                                                                                                    • Figure 110: Agreement with statements relating to plastic cards, by demographics, NI, April 2014
                                                                                                                                                                    • Figure 111: Agreement with statements relating to plastic cards, by demographics, NI, April 2014 (continued)
                                                                                                                                                                    • Figure 112: Agreement with statements relating to plastic cards, by demographics, NI, April 2014 (continued)
                                                                                                                                                                    • Figure 113: Ownership and intended ownership of contactless debit and credit cards, by demographics, NI, April 2014
                                                                                                                                                                  • RoI Toluna tables
                                                                                                                                                                    • Figure 114: Number of credit cards currently held (including those jointly held), by demographics, RoI, April 2014
                                                                                                                                                                    • Figure 115: Number of debit cards currently held (including those jointly held), by demographics, RoI, April 2014
                                                                                                                                                                    • Figure 116: Number of store cards currently held (including those jointly held), by demographics, RoI, April 2014
                                                                                                                                                                    • Figure 117: Number of charge cards currently held (including those jointly held), by demographics, RoI, April 2014
                                                                                                                                                                    • Figure 118: Number of pre-paid cards currently held (including those jointly held), by demographics, RoI, April 2014
                                                                                                                                                                    • Figure 119: Financial institution consumers currently hold credit cards with, by demographics, RoI, April 2014
                                                                                                                                                                    • Figure 120: Financial institution consumers currently hold credit cards with, by demographics, RoI, April 2014 (continued)
                                                                                                                                                                    • Figure 121: Financial institution consumers currently hold credit cards with, by demographics, RoI, April 2014 (continued)
                                                                                                                                                                    • Figure 122: Financial institution consumers currently hold debit cards with, by demographics, RoI, April 2014
                                                                                                                                                                    • Figure 123: Financial institution consumers currently hold debit cards with, by demographics, RoI, April 2014 (continued)
                                                                                                                                                                    • Figure 124: Financial institution consumers currently hold debit cards with, by demographics, RoI, April 2014 (continued)
                                                                                                                                                                    • Figure 125: Financial institution consumers currently hold store cards with, by demographics, RoI, April 2014
                                                                                                                                                                    • Figure 126: Financial institution consumers currently hold charge cards with, by demographics, RoI, April 2014
                                                                                                                                                                    • Figure 127: Financial institution consumers currently hold pre-paid cards with, by demographics, RoI, April 2014
                                                                                                                                                                    • Figure 128: Agreement with statements relating to plastic cards, by demographics, RoI, April 2014
                                                                                                                                                                    • Figure 129: Agreement with statements relating to plastic cards, by demographics, RoI, April 2014 (continued)
                                                                                                                                                                    • Figure 130: Agreement with statements relating to plastic cards, by demographics, RoI, April 2014 (continued)
                                                                                                                                                                    • Figure 131: Ownership and intended ownership of contactless debit and credit cards, by demographics, RoI, April 2014

                                                                                                                                                                Companies Covered

                                                                                                                                                                To learn more about the companies covered in this report please contact us.

                                                                                                                                                                Plastic Cards - Ireland - July 2014

                                                                                                                                                                £1,095.00 (Excl.Tax)