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- UK Credit Cards Market Report 2024
UK Credit Cards Market Report 2024
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Stay ahead of the curve and secure future growth for your business with Mintel’s UK Credit Cards Market Report. The report provides a data-led understanding of the current UK credit card market and opportunities within the industry for brands and businesses in the UK.
The cost of living crisis has seen many UK consumers turning to new lines of credit to make ends meet. The UK credit cards market is now split between those prioritising rewards and paying off the full balance each month, and those seeking interest-free periods to avoid incurring high rates. Lending is set to grow further, with many households set to feel the impact of the income squeeze even as inflation declines.
Significant numbers of card rejections in the last year are a concern for the market. In response, providers and price comparison sites must raise awareness of pre-approval tools, while building trust in data sharing as a way to ensure consumers can make the best financial decisions. For those still experiencing rejections, providers must offer explanations and guidance on improving their financial situation and debt management.
There are opportunities to revamp the rewards and perks aspect of credit cards. This is still often aimed at the premium end of the market and focused on travel experiences. Providers have an opportunity to engage a wider audience with everyday rewards on essentials and encourage spending on credit cards over debit cards. There is also scope to offer thematic cards. For example, inclusive working spaces and mobile data for remote workers, or cards focused on health and fitness perks.
Purchase the full report for a complete overview of the UK credit card market, including market dynamics and an analysis of what UK consumers want and why. Readers of this report may also be interested in Mintel’s UK Consumer Financial Resilience Market Report.
For the purposes of this report, Mintel has used the following definitions:
Credit card – a plastic payment card allowing the cardholder to pay for goods and services with access to a pre-agreed credit facility. Purchases between £100 and £30,000 are covered under Section 75 of the Consumer Credit Act providing additional consumer protection. Credit cards can also be used for cash acquisition, although there is usually an additional fee for cash transfer or ATM withdrawal.
The credit facility allows the cardholder to have a revolving balance, which can be paid off over a period of time. There is typically an interest-free period of up to 56 days from the date of purchase, after which time interest will be charged on any outstanding balance. If balances are not repaid in full, the cardholder will be required to make a minimum monthly payment.
Gross credit card lending – total sterling credit card gross lending to individuals (not seasonally adjusted)
Net credit card lending – changes of total sterling credit card lending (including repayments) to individuals (not seasonally adjusted)
This report is written by Adrian Reynolds. Adrian has over a decade of experience working in research and insights. He joined the technology and media team in 2017, having previously worked as a TV analyst. Since January 2022, Adrian has focused on financial services and FinTech. He holds a BSc in Business Administration and a Master’s in International Business.
Credit card lending is growing rapidly despite high interest rates. High levels of card rejections will need strong pre-approval tools and guidance from providers.
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