Stay ahead of the curve and secure future growth for your business with Mintel’s UK Credit Cards Market Report 2023. Our full report is packed with consumer-led market intelligence, the latest trends and consumer behaviours affecting your industry. Get a 360° view of the UK credit card market including market size, share and forecasted growth.
Below, we’ve handpicked the key insights analysed in the full report and summarised the core topics.
Key Issues Covered in this Report
- Analysis of the size of the credit card market and forecast for the next five years.
- Market share of major players, competitive strategies and advertising initiatives.
- Credit card ownership and payment behaviour.
- Impact of the cost of living crisis on credit card ownership and use.
- Interest in different benefits and alternative credit card providers.
UK Credit Cards Market Landscape
The UK credit card market experienced double digit growth in 2023 as consumers turned to credit to manage everyday spending during the ongoing cost of living crisis. Mintel forecasts that the market is set for growth over the next five years, reaching £309.1 billion by 2028.
- Credit card market share UK: Barclaycard has maintained its dominance in the credit card market, with a 23% share.
Credit Card Market Trends and Innovation Opportunities
Navigating the cost of living crisis is a top priority for UK consumers as prices continue to rise. Credit cards have become an important payment method, and one in four personal credit card owners report that they have used their credit card more over the past 12 months, increasing further for Gen Zs and Millennials.
The economic crisis has emphasised the importance of demonstrating value and offering adequate support to consumers. Value can be highlighted with the use of benefits, especially cashback and rewards programs, which are of most interest to consumers.
To learn about the latest trends and growth opportunities in the UK credit card market, purchase our full report. Readers of this report may also be interested in Mintel’s UK Attitudes Towards a Cashless Society Market Report 2023.
More About this Report
Mintel’s in-depth UK Credit Cards Market Report also features consumer-led research on the leading UK credit card providers, including Nationwide, NatWest, American Express, MBNA, and many more.
Additional Features Included with Your Purchase
- Interactive Data Book:Â This gives you unlimited access to a consumer confidence tracker that is segmented into 25 different demographic categories.
- Different Digital Formats:Â PDF for conveniently sharing with your team, PowerPoint for quickly including in your presentation, as well as Word and Excel.
- Mintel’s Clients Portal: Our portal offers instant access to actionable analysis and trends pieces relevant to your industry that are published almost daily. You can also browse for more market research reports.
Expert Analysis from an Industry Specialist
This report, written by Natasha Hayes, a leading Financial Services analyst, delivers in-depth commentary and analysis to highlight current trends in the UK Credit Cards market and add expert context to the numbers.
Credit cards remain an important payment option for consumers, while the cost of living crisis has pushed many to use their credit card more frequently.
Natasha Hayes
Financial Services Analyst
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Executive Summary
- Key issues covered in this Report
- Opportunities for the credit cards market
- Market dynamics and outlook
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Opportunities for the credit cards market
- Continue to support customers through the cost of living crisis
- Innovation can help to reduce buy now pay later threat
- Younger generations more open to alternative credit card providers
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Market dynamics and outlook
- The five-year outlook for credit cards
- Double-digit growth in gross credit card lending in 2023
- – Graph 1: net credit card lending (not seasonally adjusted) 2019-23
- Brands fail to eat into Barclaycard’s market leading position
- Key market drivers
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What consumers want and why
- Three quarters of Brits own a credit card
- – Graph 2: credit card ownership, 2023
- – Graph 3: monthly credit card payment activity, by financial situation, 2023
- …but the cost-of-living crisis drives new behaviours
- – Graph 4: credit card behaviours in the last 12 months, 2023
- – Graph 5: interest in benefits from credit card providers, 2023
- Buy now pay later threat remains limited
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Innovation and marketing
- Innovative launches in market
- – Graph 6: total above-the line, online display and direct mail advertising expenditure on credit cards, 2018/19-2022/23
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Market Size
- – Graph 7: gross credit card lending (not seasonally adjusted) 2019-23
- Cost-of-living crisis turns more consumers to credit cards
- – Graph 8: net credit card lending (not seasonally adjusted) 2019-23
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Market forecast
- Credit card market set for growth over the next five years
- Credit card lending grows as rising prices grip UK economy
- Learnings from the last income squeeze
- Credit card market is in a different position compared to the financial crisis
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Market environment
- – Graph 9: gross consumer credt lending (excluding student loans), 2018-23
- A third of consumers use credit cards weekly…
- …and many report higher credit card use over past 12 months
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Market share
- Largest providers maintain dominance in the credit card market
- Brands fail to eat into Barclaycard’s market leading position
- Tesco increases in popularity among consumers with multiple credit cards…
- …aided by the offer of Clubcard points
- M&S bank introduces new credit products
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Macro-economic factors
- – Graph 10: CPI inflation rate, 2021-23
- – Graph 11: Bank of England base rate changes, 2007-23
- – Graph 12: consumer credit rates in the UK, 2016-23
- – Graph 13: financial wellbeing index, 2016-23
- – Graph 14: financial confidence index, 2016-23
- Spending power has been curbed
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Regulatory and legislative changes
- 2023 brings significant regulatory change for financial services brands
- Consumer Duty focuses on four key outcomes
- Buy now pay later set to come under FCA regulation
- Reforms expected to Consumer Credit Act
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Credit card ownership
- Three quarters of Brits own a credit card
- – Graph 15: credit card ownership, 2022-23
- Ownership remains stable, despite economic pressures
- – Graph 16: personal credit card ownership, by age
- – Graph 17: personal credit card ownership, by financial situation, 2023
- – Graph 18: number of credit cards owned, 2023
- Mortgage holders typically own more credit cards
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Monthly payment activity
- Consumers remain committed to making full repayments
- Consumers remain committed to making full repayments
- – Graph 19: monthly credit card payment activity, 2022-23
- Repaying credit card balance is a priority for users
- – Graph 20: monthly credit card payment activity, by financial situation, 2023
- Educate younger generations around the importance of repayments
- Cost of living crisis highlights struggles of those making minimum repayments
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Credit card behaviours
- A quarter of customers are using credit holders more often than a year ago…
- – Graph 21: credit card behaviours in the last 12 months, 2023
- – Graph 22: more-frequent use of credit cards in the last 12 months, 2023
- Consumers are wary of accumulating too much debt
- – Graph 23: difficulty for credit card holders to make their credit card repayments, by whether they have children, 2023
- Multiple card ownership may lead to difficulties opening new accounts
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Interest in credit card benefits
- Use benefits to demonstrate value to consumers
- – Graph 24: interest in benefits from credit card providers, 2023
- – Graph 25: interest in benefits from credit card providers, 2023
- Opportunities to drive fair value for consumers…
- …and to partner with insurance companies
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Barriers to credit card ownership
- Aversion to debt is a key barrier to credit card ownership
- – Graph 26: barriers to owning a credit card, 2023
- – Graph 27: concerns around getting into debt as a barrier to owning a credit card, by financial situation, 2023
- A perceived lack of need is the top standalone barrier
- Concern over interest rates is a secondary factor
- Buy now pay later threat remains limited
- Demonstrate benefits of having both a debit and credit card
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Attitudes towards alternative credit card providers
- Consumers are hesitant to consider alternative credit card providers…
- – Graph 28: interest in taking out a credit card with different types of providers, 2023
- …but there has been significant movement since 2019
- – Graph 29: interest in taking out a credit card with alternative providers, 2023
- Use of alternative brands offers opportunities for seamless spending
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INNOVATION AND MARKETING TRENDS
- Competitive strategies
- Support navigating cost of living crisis
- Yonder creates ‘send points’ feature…
- … further enhancing its premium features
- Klarna brings credit opt-out function to BNPL
- Amex uses introductory offers and partnerships to promote brand
- Mastercard launches plastic card recycling programme
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Launch activity and innovation
- M&S launches digital credit account Sparks Pay
- Chase Bank plans credit card launch
- ASOS and Capital One partnership expected in 2023
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Advertising and marketing activity
- – Graph 30: total above-the line, online display and direct mail advertising expenditure on credit cards, 2018/19-2022/
- 23
- Barclaycard tops advertising expenditure list
- – Graph 31: total ATL, online display and direct mail advertising expenditure on credit cards, by media, 2021/22-2022/23
- Experian adverts focuses on credit card comparisons
- Barclaycard’s latest TV ad focuses on interest-free periods
- Barclaycard and Capital One dominate digital spending
- Depop and Amex partner on festival fashion collaboration
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BRAND RESEARCH
- Credit card brands come highly recognised and recommended
- – Graph 32: Key brand metrics for selected brands operating in the credit cards category, 2023
- – Graph 33: use of selected credit card brands all the time among brand users, 2023
- – Graph 34: trust for selected credit card brands, 2023
- American Express and Nationwide are most differentiated
- – Graph 35: attitudes towards and usage of selected brands operating in the credit cards category, 2023
- Barclaycard and HSBC have strong reputations among consumers
- – Graph 36: attitudes towards brands operating in the credit cards category, 2023
- Household names have strong brand images
- Credit card brands have different personalities
- – Graph 37: brand personality – micro image, 2023
- NatWest considered reliable and affordable
- American Express stands out as a unique brand…
- …and deemed most exclusive
- – Graph 38: brand personality of selected credit card brands, 2023
- Nationwide customers are most committed to the brand…
- – Graph 39: intentions towards credit card brands, 2023
- …and the brand provides much needed boost to customers amid cost of living crisis
- Tesco Bank perceived as accessible
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APPENDIX Section
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Market forecast data and methodology
- Market forecast data and methodology
- Market size: underlying data
- Market forecast and prediction intervals (value)
- Forecast methodology
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Report scope and definitions
- Market definitions
- Market definitions (continued)
- Abbreviations and terms
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Methodology
- Consumer research methodology
- Nielsen Ad Intel coverage
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