More payment cards per person in the UK than anywhere else in Europe
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14 February 2008 | Published by Datamonitor
London – The UK has more payment cards per adult than any other country in Western Europe, reveals a new report* from independent market analysts Datamonitor. The average British adult now carries 2.8 cards in their wallet, more than any other country in Europe. This has grown from 2.4 cards in 2002 and is expected to exceed three cards per adult by 2011.
By comparison, even Norway, which has the second highest number of cards per adult, lags some distance behind the UK with 2.3 cards per adult. Germany has 1.6 payment cards per adult, and France has just one per adult, on average.
The fact that there are so many more payment cards per head in the UK is indicative of differing consumer habits between European countries, comments Andrew Fabricius, Datamonitor financial services analyst and author of the report. “In the UK consumers use debit cards for day-to-day spending much like their European counterparts, but are increasingly using credit cards as borrowing tools, applying for new credit cards to transfer an outstanding balance and to take advantage of interest free offers. In most other countries, consumers do not view credit cards as a borrowing tool and as a result they are not so popular,” he says.
Credit cards most popular in the UK
More notable is the extremely high number of credit cards** per adult in the UK. At the end of 2006 the average adult had 1.4 credit cards, twice that of the next most penetrated market, which is Norway, with 0.7 cards per adult. In Spain there are just 0.4 cards per person, and in Germany, where credit products are very unpopular, the figure is as low as 0.06, or approximately just one card for every sixteen adults.
Growth in credit cards forecast
However, a slowdown is afoot. In terms of total card numbers, the UK credit card market is predicted to grow at an average annual growth rate of just 0.2%, the slowest growth rate in the region. By contrast, several other markets, especially those with underdeveloped credit card markets will see significant growth. In particular, the number of cards in Germany is expected to grow at average annual rate of 26% to 2011, and France at 21%, Mr. Fabricius says. “These markets will see significant growth as consumers become more accustomed to the flexibility that credit cards can offer.
“Nonetheless, the UK is expected to remain the biggest market in terms of cards per person for the foreseeable future,” he says.
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Notes to editors
Notes & References
* Western European Cards Database 2007
** By credit cards, Datamonitor refers to payment cards with which the cardholder can revolve a balance from month to month, as opposed to a charge card which has to be paid off in full at the conclusion of each billing cycle.
Related Research
Datamonitor’s Western European Cards Database gives a detailed overview of the key trends and developments in the payment card markets across 16 European markets. Full market data and five year forecasts are provided for the credit, debit, charge, and private label markets, along with credit and private label competitor figures.
Further Information
Mr. Andrew Fabricius, Datamonitor financial services analyst and author of the report, is available for comment.
More information is available from the Datamonitor Group Media Team. Please contact Anne Bourgeois on +44 20 7675 7302 or abourgeois@datamonitor.com.
About Datamonitor
Datamonitor is a leading provider of online database and analysis services for key industry sectors. We help our clients, 5000 of the world's leading companies, to address complex strategic issues. Through our proprietary databases and wealth of expertise, we provide clients with unbiased expert analysis and in-depth forecasts for seven industry sectors: Automotive, Consumer Packaged Goods, Energy, Financial Services, Pharmaceuticals and Healthcare, Technology, Transport and Logistics.
