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Payment Metrics: Consumer Attitudes towards and Usage of
Traditional and Emerging Means of Payment in the UK
Published on March 2012

                                                                                                                                 Report Summary

Payment Metrics: Consumer Attitudes towards and Usage of Traditional and Emerging Means of Payment in the UK is a study about
the way in which consumers currently pay for different products and services and how this is likely to change in future. It covers both
established payment means, including different types of payment card, and payment methods that seem set for rapid growth in future,
most notably mobile and contactless payments. In addition, consumer behaviour is analysed in the fields of specialised online
payments and domestic / international remittances, and the research also addresses two areas that are central to consumers' choice
of payment means: loyalty programs; and insurance and assistance policies linked to added value accounts and payment cards. The
report examines how consumers state that they are most likely to pay for small, medium-sized and large irregular purchases at
present and also how they report paying for common services that require recurring payments (e.g. cable / satellite TV, electricity, gas
or water bills, flat or house rental, travel season tickets etc.). In both cases, it quantifies usage of the following payment means: cash;
cheques or postal orders; debit cards; credit or charge cards; rechargeable prepaid cards; and any other means (e.g. mobile or online
payments not involving debit, credit or charge cards). Also, for regular payments, it takes into consideration direct debits, standing
orders and bank transfers, and distinguishes between rechargeable prepaid cards with multiple usage functions and those usable for
one particular service only. You may be able to use this report in one or more of the following ways: - gain access to a complete
'tool kit' for organisations with an interest in payments to understand the current behaviour of UK consumers in this huge and diverse
sector; - know exactly which types of card are held most widely by consumers and which they report using most often - for example,
how does frequency of usage of the many different types of affinity and co-branded card compare to that of regular cards and what
differences in utilisation are visible when cards are analysed by function, brand, status and target' - appreciate the extent to which
UK consumers are ready to embrace future opportunities to make payments using their mobile phone (and, possibly, other devices
such as wristwatches); - understand the typical member profile of the UK's main loyalty programs and the extent to which each has
engaged its members to actually make use of it;                       - evaluate which forms of insurance and assistance are most likely to enhance the
appeal of payment products and which are most likely to be used by consumers in the form of claims or calls for assistance.




                                                                                                                                 Table of Content


Executive Summary
Introduction
Payment Types
Payment Cards
Loyalty Programs
Insurance and Assistance
Mobile / Contactless Payments
Online Payments
Domestic / International Remittances
Appendix


List of Graphics / Tables


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0.0 EXECUTIVE SUMMARY
A fairly high proportion of respondents are aware of the potential to use mobile phones to make payments...
... although a majority are not currently favourable towards the concept...
... and lack of enthusiasm is especially apparent among female and older customers
Credit or charge cards are used more frequently for payment as size of transaction increases
For recurring transactions, one payment means is dominant in all but one purchase category
Numerous organisations have a fundamental interest in the evolving consumer payments market


1.0 INTRODUCTION
Scope and rationale
Consumers are changing the ways in which they pay for products and services...
... which has important implications for a wide range of different organisations...
... and is already visible from trends in the payments market in recent years
Finaccord
Payment Metrics and other consumer research studies focused on the UK
UK affinity and partnership marketing publications


2.0 PAYMENT TYPES
Introduction
Payment methods for irregular purchases
Low-value purchases (up to £15.00)
Cash remains king for low-value irregular purchases with a value of up to £15.00...
Medium-value purchases (£15.00 - £50.00)
... but is relegated behind debit, credit and charge cards for medium-value purchases
High-value purchases (£50.00 or more)
As a primary means of payment, rechargeable prepaid cards have made little headway in any category
Payment method preferences by age group
Age group variances are determined primarily by orientation to particular purchase value brackets
Payment methods for recurring purchases
Over 50% of respondents make recurring payments across seven categories of expenditure
Direct debits, standing orders and other bank transfers are dominant in the majority of cases
Online payment set-up is used most commonly for all categories needing recurring payments


3.0 PAYMENT CARDS
Introduction
Cards in circulation
Overview
Almost all respondents possess a debit card and well over half a credit, charge or store card
Debit cards
It is likely that over three quarters of debit cards issued carry the Visa marque...
Credit, charge and store cards
... although MasterCard has a narrow lead in the credit card sector
The survey results suggest that approaching 30% of cards are likely to be higher status products...
... with American Express likely to hold a higher market share in the gold and platinum categories
As a percentage of its total card portfolio, business cards are particularly important to American Express...
... meaning that its market share of cards issued in this segment is likely to be higher than that of Visa
MasterCard appears to be substantially stronger than Visa in the market for co-branded cards...
... although the opposite applies in the much smaller market for affinity cards



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Supermarkets and other retailers constitute the two most important specific co-branding segments
The co-branding portfolios of the three main payment brands display substantial differences in make-up
The influence of the three payment networks is most even in the hotel chain co-branding segment
In the affinity credit card market, the segment of charity cards is the largest
In the market for football club credit cards, the results suggest a three to one weighting in favour of Visa
Rechargeable prepaid cards
In the market for prepaid cards, the results suggest that MasterCard is well ahead of Visa
Around one third of rechargeable prepaid cards in circulation are either affinity or co-branded products
Once again, MasterCard and Visa appear to have contrasting areas of strength
Many co-branded rechargeable prepaid cards carry brand names created specifically for them
MasterCard is dominant in the key co-branding segment of 'other organisations'
Charity cards are the most common type of rechargeable prepaid affinity card
Both MasterCard and Visa are active in the market for affinity rechargeable prepaid cards
Card utilisation frequency
Respondents are most likely to report a debit card as their main one
Utilisation rates for Visa debit cards are higher than those for MasterCard / Maestro products...
... although the reverse holds true for credit cards
For rechargeable prepaid cards, the utilisation gap between the two main payment brands is narrower
Although not widely held, ultra high status cards enjoy very high utilisation rates among those that do...
... with a similar assertion applying in the case of business cards, which are rarely left dormant
Among co-branded cards, consumers use retailer or supermarket cards most often as their main ones...
... with charity cards recording a particularly strong performance among types of affinity card
Across all card categories, charity and ultra high status cards record the highest utilisation rates


4.0 LOYALTY PROGRAMS
Introduction
Membership and utilisation
Over 60% of respondents report that they are members of a loyalty program of one sort or another
Loyalty program members are most likely to be female, aged from 55 to 64 and with a high annual income
Three loyalty programs are dominant in terms of their total number of members...
... although two others also claim more than 10% of respondents as members
Most typically, program members are female, aged 47 and with an average annual income of £32,837...
... although substantial differences in member profiles are visible from one program to another
Respondents who belong to the loyalty program of Marks & Spencer appear to be the most engaged
Earning and redemption systems
Cashback is comfortably the most favoured loyalty program earning system
Earning and redemption opportunities across multiple different organisations are generally preferred


5.0 INSURANCE AND ASSISTANCE
Introduction
Packaged policy penetration rates
Breakdown recovery insurance is held most commonly on a packaged basis...
... as a result of rapid growth of added value accounts in recent years
Perceived value
Perceived value among respondents varies greatly by type of insurance or assistance...
... and there is often an apparent disconnect between penetration rate and perceived value
Arguably, the generic product name 'card protection insurance' would benefit from an update
Respondents with access to them are most likely to actually make use of concierge services



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The survey results also point to a relatively high claims frequency for price protection insurance
Generally speaking, respondents value most what they use most albeit with some exceptions


6.0 MOBILE / CONTACTLESS PAYMENTS
Introduction
Contactless card payments
Less than a quarter of respondents possess a payment card with a contactless functionality...
... and many of those that do have not yet used it to make a contactless payment
Men are significantly more likely to have made a contactless payment than women
Mobile banking
Users of mobile banking services are most likely to be young and male...
... and to be owners of an Apple iPhone
Over a quarter of users of mobile banking check their account balance every day
Mobile payments
Almost three quarters of respondents are aware of the emerging environment for mobile payments
Respondents with an Apple iPhone are most aware and those with an HTC device the least aware
Respondents display mixed feelings towards the concept of using a mobile phone to make payments...
... with females markedly less enthused at the prospect than their male counterparts...
... but with owners of two makes of mobile phone displaying much more interest than the average
Relatively few respondents are sure that their mobile phone is already equipped to make payments
... with some differences again visible when analysed by make of mobile phone used
Consumers are most likely to look to PayPal, Amazon and Visa as providers of mobile payment solutions
Most respondents would prefer mobile payments to be debited directly from their bank account...
... although some younger respondents show an interest in linking such payments to their mobile phone bill
A minority of respondents would favour using a special wristwatch to make contactless payments...


7.0 ONLINE PAYMENTS
Introduction
Frequency of usage of online payment solutions
In terms of usage frequency, PayPal has overtaken direct entry of payment card details
Amazon Payments is also used quite widely but other online payment means lag behind


8.0 DOMESTIC / INTERNATIONAL REMITTANCES
Introduction
Overview
Almost twice as many respondents have a need for domestic remittances as for international remittances
Domestic remittances
PayPal and various types of bank payment are used on a regular basis most often
Sending cash, cheques or postal orders in the post is ranked third by this measure
International remittances
Moneygram and Western Union enjoy more frequent usage in the market for international remittances...
... although PayPal still appears to be dominant
Market shares
PayPal's approximate market share of international remittances is similar to that for domestic remittances...
... although there are some differences among the competing remittance means


9.0 APPENDIX
Research sample and mechanics



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Research methodology and structure


LIST OF GRAPHICS / TABLES
0.0 EXECUTIVE SUMMARY
Close to three quarters of respondents with a mobile phone are aware of the emerging market for mobile payments
Much work remains to be done to convince consumers of the benefits of mobile payments as opposed to other payment means
The market for mobile payments to 'attack' in the field of irregular transactions varies by size of purchase...
... and by sector of purchase in the case of regular, recurring payments
1.0 INTRODUCTION


2.0 PAYMENT TYPES
Segmentation of main payment methods used for low-value irregular purchases, 2012
Segmentation of payment methods for medium-value irregular purchases, 2012
Segmentation of payment methods for high-value irregular purchases, 2012
Payment method preferences for all irregular purchases by age group, 2012
Payment method preferences for all irregular purchases by age group, 2012 (table)
Frequency with which consumers make recurring payments for particular services, 2012
Segmentation of payment methods for recurring purchases split by category of purchase, 2012
Segmentation of payment methods for recurring purchases split by category of purchase, 2012 (table)
Segmentation of payment interfaces used to set up recurring purchases split by type of purchase, 2012
Segmentation of payment interfaces used to set up recurring purchases split by type of purchase, 2012 (table)


3.0 PAYMENT CARDS
Percentage of respondents holding debit cards, credit / charge / store cards and rechargeable prepaid cards, 2012
Implied market share of debit cards in circulation of MasterCard / Maestro and Visa, 2012
Percentage of respondents holding American Express, Diners Club, MasterCard, Visa and private label credit, charge or store cards,
2012
Implied market share of credit, charge and store cards in circulation of American Express, Diners Club, MasterCard, Visa and private
label, 2012
Credit, charge and store cards in circulation segmented by standard, gold, platinum and ultra high status and by card brand / network,
2012
Implied market share of standard, gold, platinum and ultra high status credit, charge and store cards in circulation of American
Express, Diners Club, MasterCard, Visa and private label, 2012
Credit, charge and store cards in circulation segmented by standard, gold, platinum and ultra high status and by card brand / network,
2012 (table)
Credit, charge and store cards in circulation segmented by consumer and business cards and by card brand / network, 2012 (table)
Implied market share of consumer and business credit, charge and store cards in circulation of American Express, Diners Club,
MasterCard, Visa and private label, 2012
Credit, charge and store cards in circulation segmented by consumer and business cards and by card brand / network, 2012 (table)
Credit, charge and store cards in circulation segmented by mono-branded, co-branded and affinity cards and by card brand / network,
2012 (table)
Implied market share of mono-branded, co-branded and affinity credit, charge and store cards in circulation of American Express,
Diners Club, MasterCard, Visa and private label, 2012
Credit, charge and store cards in circulation segmented by mono-branded, co-branded and affinity cards and by card brand / network,
2012 (table)
Co-branded credit cards in circulation segmented by co-brand category and by card brand / network, 2012
Implied market share, segmented by co-brand category, of co-branded credit cards in circulation of American Express, MasterCard
and Visa, 2012



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Co-branded credit cards in circulation segmented by co-brand category and by card brand / network, 2012 (table)
Affinity credit cards in circulation segmented by affinity category and by card brand / network, 2012 (table)
Implied market share, segmented by affinity category, of affinity credit cards in circulation of MasterCard and Visa, 2012
Affinity credit cards in circulation segmented by affinity category and by card brand / network, 2012 (table)
Percentage of respondents holding MasterCard, Visa and private label rechargeable prepaid cards, 2012
Implied market share of rechargeable prepaid cards in circulation of MasterCard, Visa and private label, 2012
Rechargeable prepaid cards in circulation segmented by mono-branded, co-branded and affinity cards and by card brand / network,
2012 (table)
Implied market share of mono-branded, co-branded and affinity rechargeable prepaid cards in circulation of MasterCard, Visa and
private label, 2012
Rechargeable prepaid cards in circulation segmented by mono-branded, co-branded and affinity cards and by card brand / network,
2012 (table)
Co-branded rechargeable prepaid cards in circulation segmented by co-brand category and by card brand / network, 2012
Implied market share, segmented by co-brand category, of rechargeable prepaid cards in circulation of MasterCard and Visa, 2012
Co-branded rechargeable prepaid cards in circulation segmented by co-brand category and by card brand / network, 2012 (table)
Affinity rechargeable prepaid cards in circulation segmented by affinity category and by card brand / network, 2012
Implied market share, segmented by affinity category, of affinity rechargeable prepaid cards in circulation of MasterCard and Visa,
2012
Affinity rechargeable prepaid cards in circulation segmented by affinity category and by card brand / network, 2012 (table)
Card utilisation frequency by card function, 2012
Card utilisation frequency by card function, 2012 (table)
Card utilisation frequency by card function and brand / network, 2012
Card utilisation frequency by card function and brand / network, 2012 (table)
Credit, charge and store card utilisation frequency by card status, target and type, 2012
Credit, charge and store card utilisation frequency by card status, target and type, 2012 (table)
Co-branded and affinity credit and charge card utilisation frequency by co-brand and affinity type, 2012
Co-branded and affinity credit and charge card utilisation frequency by co-brand and affinity type, 2012 (table)
Ranking of card categories (function, brand / network, status, target, type) by score for card utilisation frequency, 2012


4.0 LOYALTY PROGRAMS
Membership of loyalty programs by program type, 2012
Membership of loyalty programs by program type and by gender, age group and annual household income, 2012
Membership of specific loyalty programs and degree of utilisation of each among all respondents, 2012
Membership of specific loyalty programs and degree of utilisation of each among all respondents, 2012 (table)
Gender, age and annual household income profiles of respondents belonging to specific loyalty programs, 2012 (table)
Degree of utilisation of specific loyalty programs among respondents belonging to each program, 2012
Degree of utilisation of specific loyalty programs among respondents belonging to each program, 2012 (table)
Preferred loyalty program earning systems of respondents, 2012
Preference of respondents for earning and redemption opportunities across a single organisation or multiple different organisations,
2012


5.0 INSURANCE AND ASSISTANCE
Penetration rates for insurance and assistance policy types linked to added value accounts and payment cards, 2012
Penetration rates for insurance and assistance policy types linked to added value accounts and payment cards, 2012 (table)
Perceived value among respondents of insurance and assistance types linked to added value accounts and payment cards, 2012
Perceived value among respondents of insurance and assistance types linked to added value accounts and payment cards, 2012
(table)
Relationship between penetration rates for insurance and assistance policy types linked to added value accounts and payment cards



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and their perceived value among respondents, 2012
Claims / utilisation frequency among respondents for insurance and assistance policy types linked to added value accounts and
payment cards, 2012
Claims / utilisation frequency among respondents for insurance and assistance policy types linked to added value accounts and
payment cards, 2012 (table)


6.0 MOBILE / CONTACTLESS PAYMENTS
Possession and utilisation among respondents of contactless payment cards issued by banks, segmented by gender and age group,
2012
Awareness and utilisation among respondents of contactless payment cards issued by banks, segmented by gender and age group,
2012 (table)
Utilisation among respondents of mobile banking, segmented by gender and age group, 2012
Utilisation among respondents of mobile banking, segmented by gender and age group, 2012 (table)
Utilisation among respondents of mobile banking, segmented by make of mobile phone owned, 2012
Utilisation among respondents of mobile banking, segmented by make of mobile phone owned, 2012 (table)
Frequency of utilisation of mobile banking functions among respondents utilising mobile banking, 2012
Frequency of utilisation of mobile banking functions among respondents utilising mobile banking, 2012 (table)
Awareness among respondents with a mobile phone that opportunities to utilise mobile phones to make payments are likely to
increase in future, segmented by gender and age group, 2012
Awareness among respondents that opportunities to utilise mobile phones to make payments are likely to increase in future,
segmented by gender and age group, 2012 (table)
Awareness among respondents with a mobile phone that opportunities to utilise mobile phones to make payments are likely to
increase in future, segmented by make of mobile phone used, 2012
Awareness among respondents that opportunities to utilise mobile phones to make payments are likely to increase in future,
segmented by make of mobile phone used, 2012 (table)
Receptiveness among respondents with a mobile phone towards the concept of using mobile phones to make payments, segmented
by gender and age group, 2012
Receptiveness among respondents with a mobile phone towards the concept of using mobile phones to make payments, segmented
by gender and age group, 2012 (table)
Receptiveness among respondents with a mobile phone towards the concept of using mobile phones to make payments, segmented
by make of mobile phone used, 2012
Receptiveness among respondents with a mobile phone towards the concept of using mobile phones to make payments, segmented
by make of mobile phone used, 2012 (table)
Possession among respondents of mobile phones already enabled to make payments, segmented by gender and age group, 2012
Possession among respondents of mobile phones already enabled to make payments, segmented by gender and age group, 2012
(table)
Possession among respondents of mobile phones already enabled to make payments, segmented by make of mobile phone used,
2012
Possession among respondents of mobile phones already enabled to make payments, segmented by make of mobile phone used,
2012 (table)
Degree to which respondents with a mobile phone would naturally consider using 25 major consumer-facing organisations as a
source of mobile payment solutions, 2012
Degree to which respondents with a mobile phone would naturally consider using 25 major consumer-facing organisations as a
source of mobile payment solutions, 2012 (table)
Billing or debit methods preferred among respondents with a mobile phone for settling payments made by mobile phone, segmented
by gender and age group, 2012
Billing or debit methods preferred among respondents with a mobile phone for settling payments made by mobile phone, segmented
by gender and age group, 2012 (table)



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Preference of respondents for using a special wristwatch rather than a mobile phone or payment card for making contactless
payments, segmented by gender and age group, 2012
Preference of respondents for using a special wristwatch rather than a mobile phone or payment card for making contactless
payments, segmented by gender and age group, 2012 (table)


7.0 ONLINE PAYMENTS
Frequency of usage of different online payment means, 2012
Frequency of usage of different online payment means, 2012 (table)


8.0 DOMESTIC / INTERNATIONAL REMITTANCES
Frequency of need for paying individuals at home and abroad without being able to meet them in person, 2012
Frequency of usage of different means of making domestic remittances among respondents needing to pay individuals at home
without being able to meet them, 2012
Frequency of usage of different means of making domestic remittances among respondents needing to pay individuals at home
without being able to meet them, 2012 (table)
Frequency of usage of different means of making international remittances among respondents needing to pay individuals abroad
without being able to meet them, 2012
Frequency of usage of different means of making international remittances among respondents needing to pay individuals abroad
without being able to meet them, 2012 (table)
Approximate market shares of competing remittance means for domestic and international remittances, 2012
9.0 APPENDIX




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Payment Metrics: Consumer Attitudes towards and Usage of Traditional and Emerging Means of Payment in the UK

  • 1. Find Industry reports, Company profiles ReportLinker and Market Statistics >> Get this Report Now by email! Payment Metrics: Consumer Attitudes towards and Usage of Traditional and Emerging Means of Payment in the UK Published on March 2012 Report Summary Payment Metrics: Consumer Attitudes towards and Usage of Traditional and Emerging Means of Payment in the UK is a study about the way in which consumers currently pay for different products and services and how this is likely to change in future. It covers both established payment means, including different types of payment card, and payment methods that seem set for rapid growth in future, most notably mobile and contactless payments. In addition, consumer behaviour is analysed in the fields of specialised online payments and domestic / international remittances, and the research also addresses two areas that are central to consumers' choice of payment means: loyalty programs; and insurance and assistance policies linked to added value accounts and payment cards. The report examines how consumers state that they are most likely to pay for small, medium-sized and large irregular purchases at present and also how they report paying for common services that require recurring payments (e.g. cable / satellite TV, electricity, gas or water bills, flat or house rental, travel season tickets etc.). In both cases, it quantifies usage of the following payment means: cash; cheques or postal orders; debit cards; credit or charge cards; rechargeable prepaid cards; and any other means (e.g. mobile or online payments not involving debit, credit or charge cards). Also, for regular payments, it takes into consideration direct debits, standing orders and bank transfers, and distinguishes between rechargeable prepaid cards with multiple usage functions and those usable for one particular service only. You may be able to use this report in one or more of the following ways: - gain access to a complete 'tool kit' for organisations with an interest in payments to understand the current behaviour of UK consumers in this huge and diverse sector; - know exactly which types of card are held most widely by consumers and which they report using most often - for example, how does frequency of usage of the many different types of affinity and co-branded card compare to that of regular cards and what differences in utilisation are visible when cards are analysed by function, brand, status and target' - appreciate the extent to which UK consumers are ready to embrace future opportunities to make payments using their mobile phone (and, possibly, other devices such as wristwatches); - understand the typical member profile of the UK's main loyalty programs and the extent to which each has engaged its members to actually make use of it; - evaluate which forms of insurance and assistance are most likely to enhance the appeal of payment products and which are most likely to be used by consumers in the form of claims or calls for assistance. Table of Content Executive Summary Introduction Payment Types Payment Cards Loyalty Programs Insurance and Assistance Mobile / Contactless Payments Online Payments Domestic / International Remittances Appendix List of Graphics / Tables Payment Metrics: Consumer Attitudes towards and Usage of Traditional and Emerging Means of Payment in the UK (From Slideshare) Page 1/10
  • 2. Find Industry reports, Company profiles ReportLinker and Market Statistics >> Get this Report Now by email! 0.0 EXECUTIVE SUMMARY A fairly high proportion of respondents are aware of the potential to use mobile phones to make payments... ... although a majority are not currently favourable towards the concept... ... and lack of enthusiasm is especially apparent among female and older customers Credit or charge cards are used more frequently for payment as size of transaction increases For recurring transactions, one payment means is dominant in all but one purchase category Numerous organisations have a fundamental interest in the evolving consumer payments market 1.0 INTRODUCTION Scope and rationale Consumers are changing the ways in which they pay for products and services... ... which has important implications for a wide range of different organisations... ... and is already visible from trends in the payments market in recent years Finaccord Payment Metrics and other consumer research studies focused on the UK UK affinity and partnership marketing publications 2.0 PAYMENT TYPES Introduction Payment methods for irregular purchases Low-value purchases (up to £15.00) Cash remains king for low-value irregular purchases with a value of up to £15.00... Medium-value purchases (£15.00 - £50.00) ... but is relegated behind debit, credit and charge cards for medium-value purchases High-value purchases (£50.00 or more) As a primary means of payment, rechargeable prepaid cards have made little headway in any category Payment method preferences by age group Age group variances are determined primarily by orientation to particular purchase value brackets Payment methods for recurring purchases Over 50% of respondents make recurring payments across seven categories of expenditure Direct debits, standing orders and other bank transfers are dominant in the majority of cases Online payment set-up is used most commonly for all categories needing recurring payments 3.0 PAYMENT CARDS Introduction Cards in circulation Overview Almost all respondents possess a debit card and well over half a credit, charge or store card Debit cards It is likely that over three quarters of debit cards issued carry the Visa marque... Credit, charge and store cards ... although MasterCard has a narrow lead in the credit card sector The survey results suggest that approaching 30% of cards are likely to be higher status products... ... with American Express likely to hold a higher market share in the gold and platinum categories As a percentage of its total card portfolio, business cards are particularly important to American Express... ... meaning that its market share of cards issued in this segment is likely to be higher than that of Visa MasterCard appears to be substantially stronger than Visa in the market for co-branded cards... ... although the opposite applies in the much smaller market for affinity cards Payment Metrics: Consumer Attitudes towards and Usage of Traditional and Emerging Means of Payment in the UK (From Slideshare) Page 2/10
  • 3. Find Industry reports, Company profiles ReportLinker and Market Statistics >> Get this Report Now by email! Supermarkets and other retailers constitute the two most important specific co-branding segments The co-branding portfolios of the three main payment brands display substantial differences in make-up The influence of the three payment networks is most even in the hotel chain co-branding segment In the affinity credit card market, the segment of charity cards is the largest In the market for football club credit cards, the results suggest a three to one weighting in favour of Visa Rechargeable prepaid cards In the market for prepaid cards, the results suggest that MasterCard is well ahead of Visa Around one third of rechargeable prepaid cards in circulation are either affinity or co-branded products Once again, MasterCard and Visa appear to have contrasting areas of strength Many co-branded rechargeable prepaid cards carry brand names created specifically for them MasterCard is dominant in the key co-branding segment of 'other organisations' Charity cards are the most common type of rechargeable prepaid affinity card Both MasterCard and Visa are active in the market for affinity rechargeable prepaid cards Card utilisation frequency Respondents are most likely to report a debit card as their main one Utilisation rates for Visa debit cards are higher than those for MasterCard / Maestro products... ... although the reverse holds true for credit cards For rechargeable prepaid cards, the utilisation gap between the two main payment brands is narrower Although not widely held, ultra high status cards enjoy very high utilisation rates among those that do... ... with a similar assertion applying in the case of business cards, which are rarely left dormant Among co-branded cards, consumers use retailer or supermarket cards most often as their main ones... ... with charity cards recording a particularly strong performance among types of affinity card Across all card categories, charity and ultra high status cards record the highest utilisation rates 4.0 LOYALTY PROGRAMS Introduction Membership and utilisation Over 60% of respondents report that they are members of a loyalty program of one sort or another Loyalty program members are most likely to be female, aged from 55 to 64 and with a high annual income Three loyalty programs are dominant in terms of their total number of members... ... although two others also claim more than 10% of respondents as members Most typically, program members are female, aged 47 and with an average annual income of £32,837... ... although substantial differences in member profiles are visible from one program to another Respondents who belong to the loyalty program of Marks & Spencer appear to be the most engaged Earning and redemption systems Cashback is comfortably the most favoured loyalty program earning system Earning and redemption opportunities across multiple different organisations are generally preferred 5.0 INSURANCE AND ASSISTANCE Introduction Packaged policy penetration rates Breakdown recovery insurance is held most commonly on a packaged basis... ... as a result of rapid growth of added value accounts in recent years Perceived value Perceived value among respondents varies greatly by type of insurance or assistance... ... and there is often an apparent disconnect between penetration rate and perceived value Arguably, the generic product name 'card protection insurance' would benefit from an update Respondents with access to them are most likely to actually make use of concierge services Payment Metrics: Consumer Attitudes towards and Usage of Traditional and Emerging Means of Payment in the UK (From Slideshare) Page 3/10
  • 4. Find Industry reports, Company profiles ReportLinker and Market Statistics >> Get this Report Now by email! The survey results also point to a relatively high claims frequency for price protection insurance Generally speaking, respondents value most what they use most albeit with some exceptions 6.0 MOBILE / CONTACTLESS PAYMENTS Introduction Contactless card payments Less than a quarter of respondents possess a payment card with a contactless functionality... ... and many of those that do have not yet used it to make a contactless payment Men are significantly more likely to have made a contactless payment than women Mobile banking Users of mobile banking services are most likely to be young and male... ... and to be owners of an Apple iPhone Over a quarter of users of mobile banking check their account balance every day Mobile payments Almost three quarters of respondents are aware of the emerging environment for mobile payments Respondents with an Apple iPhone are most aware and those with an HTC device the least aware Respondents display mixed feelings towards the concept of using a mobile phone to make payments... ... with females markedly less enthused at the prospect than their male counterparts... ... but with owners of two makes of mobile phone displaying much more interest than the average Relatively few respondents are sure that their mobile phone is already equipped to make payments ... with some differences again visible when analysed by make of mobile phone used Consumers are most likely to look to PayPal, Amazon and Visa as providers of mobile payment solutions Most respondents would prefer mobile payments to be debited directly from their bank account... ... although some younger respondents show an interest in linking such payments to their mobile phone bill A minority of respondents would favour using a special wristwatch to make contactless payments... 7.0 ONLINE PAYMENTS Introduction Frequency of usage of online payment solutions In terms of usage frequency, PayPal has overtaken direct entry of payment card details Amazon Payments is also used quite widely but other online payment means lag behind 8.0 DOMESTIC / INTERNATIONAL REMITTANCES Introduction Overview Almost twice as many respondents have a need for domestic remittances as for international remittances Domestic remittances PayPal and various types of bank payment are used on a regular basis most often Sending cash, cheques or postal orders in the post is ranked third by this measure International remittances Moneygram and Western Union enjoy more frequent usage in the market for international remittances... ... although PayPal still appears to be dominant Market shares PayPal's approximate market share of international remittances is similar to that for domestic remittances... ... although there are some differences among the competing remittance means 9.0 APPENDIX Research sample and mechanics Payment Metrics: Consumer Attitudes towards and Usage of Traditional and Emerging Means of Payment in the UK (From Slideshare) Page 4/10
  • 5. Find Industry reports, Company profiles ReportLinker and Market Statistics >> Get this Report Now by email! Research methodology and structure LIST OF GRAPHICS / TABLES 0.0 EXECUTIVE SUMMARY Close to three quarters of respondents with a mobile phone are aware of the emerging market for mobile payments Much work remains to be done to convince consumers of the benefits of mobile payments as opposed to other payment means The market for mobile payments to 'attack' in the field of irregular transactions varies by size of purchase... ... and by sector of purchase in the case of regular, recurring payments 1.0 INTRODUCTION 2.0 PAYMENT TYPES Segmentation of main payment methods used for low-value irregular purchases, 2012 Segmentation of payment methods for medium-value irregular purchases, 2012 Segmentation of payment methods for high-value irregular purchases, 2012 Payment method preferences for all irregular purchases by age group, 2012 Payment method preferences for all irregular purchases by age group, 2012 (table) Frequency with which consumers make recurring payments for particular services, 2012 Segmentation of payment methods for recurring purchases split by category of purchase, 2012 Segmentation of payment methods for recurring purchases split by category of purchase, 2012 (table) Segmentation of payment interfaces used to set up recurring purchases split by type of purchase, 2012 Segmentation of payment interfaces used to set up recurring purchases split by type of purchase, 2012 (table) 3.0 PAYMENT CARDS Percentage of respondents holding debit cards, credit / charge / store cards and rechargeable prepaid cards, 2012 Implied market share of debit cards in circulation of MasterCard / Maestro and Visa, 2012 Percentage of respondents holding American Express, Diners Club, MasterCard, Visa and private label credit, charge or store cards, 2012 Implied market share of credit, charge and store cards in circulation of American Express, Diners Club, MasterCard, Visa and private label, 2012 Credit, charge and store cards in circulation segmented by standard, gold, platinum and ultra high status and by card brand / network, 2012 Implied market share of standard, gold, platinum and ultra high status credit, charge and store cards in circulation of American Express, Diners Club, MasterCard, Visa and private label, 2012 Credit, charge and store cards in circulation segmented by standard, gold, platinum and ultra high status and by card brand / network, 2012 (table) Credit, charge and store cards in circulation segmented by consumer and business cards and by card brand / network, 2012 (table) Implied market share of consumer and business credit, charge and store cards in circulation of American Express, Diners Club, MasterCard, Visa and private label, 2012 Credit, charge and store cards in circulation segmented by consumer and business cards and by card brand / network, 2012 (table) Credit, charge and store cards in circulation segmented by mono-branded, co-branded and affinity cards and by card brand / network, 2012 (table) Implied market share of mono-branded, co-branded and affinity credit, charge and store cards in circulation of American Express, Diners Club, MasterCard, Visa and private label, 2012 Credit, charge and store cards in circulation segmented by mono-branded, co-branded and affinity cards and by card brand / network, 2012 (table) Co-branded credit cards in circulation segmented by co-brand category and by card brand / network, 2012 Implied market share, segmented by co-brand category, of co-branded credit cards in circulation of American Express, MasterCard and Visa, 2012 Payment Metrics: Consumer Attitudes towards and Usage of Traditional and Emerging Means of Payment in the UK (From Slideshare) Page 5/10
  • 6. Find Industry reports, Company profiles ReportLinker and Market Statistics >> Get this Report Now by email! Co-branded credit cards in circulation segmented by co-brand category and by card brand / network, 2012 (table) Affinity credit cards in circulation segmented by affinity category and by card brand / network, 2012 (table) Implied market share, segmented by affinity category, of affinity credit cards in circulation of MasterCard and Visa, 2012 Affinity credit cards in circulation segmented by affinity category and by card brand / network, 2012 (table) Percentage of respondents holding MasterCard, Visa and private label rechargeable prepaid cards, 2012 Implied market share of rechargeable prepaid cards in circulation of MasterCard, Visa and private label, 2012 Rechargeable prepaid cards in circulation segmented by mono-branded, co-branded and affinity cards and by card brand / network, 2012 (table) Implied market share of mono-branded, co-branded and affinity rechargeable prepaid cards in circulation of MasterCard, Visa and private label, 2012 Rechargeable prepaid cards in circulation segmented by mono-branded, co-branded and affinity cards and by card brand / network, 2012 (table) Co-branded rechargeable prepaid cards in circulation segmented by co-brand category and by card brand / network, 2012 Implied market share, segmented by co-brand category, of rechargeable prepaid cards in circulation of MasterCard and Visa, 2012 Co-branded rechargeable prepaid cards in circulation segmented by co-brand category and by card brand / network, 2012 (table) Affinity rechargeable prepaid cards in circulation segmented by affinity category and by card brand / network, 2012 Implied market share, segmented by affinity category, of affinity rechargeable prepaid cards in circulation of MasterCard and Visa, 2012 Affinity rechargeable prepaid cards in circulation segmented by affinity category and by card brand / network, 2012 (table) Card utilisation frequency by card function, 2012 Card utilisation frequency by card function, 2012 (table) Card utilisation frequency by card function and brand / network, 2012 Card utilisation frequency by card function and brand / network, 2012 (table) Credit, charge and store card utilisation frequency by card status, target and type, 2012 Credit, charge and store card utilisation frequency by card status, target and type, 2012 (table) Co-branded and affinity credit and charge card utilisation frequency by co-brand and affinity type, 2012 Co-branded and affinity credit and charge card utilisation frequency by co-brand and affinity type, 2012 (table) Ranking of card categories (function, brand / network, status, target, type) by score for card utilisation frequency, 2012 4.0 LOYALTY PROGRAMS Membership of loyalty programs by program type, 2012 Membership of loyalty programs by program type and by gender, age group and annual household income, 2012 Membership of specific loyalty programs and degree of utilisation of each among all respondents, 2012 Membership of specific loyalty programs and degree of utilisation of each among all respondents, 2012 (table) Gender, age and annual household income profiles of respondents belonging to specific loyalty programs, 2012 (table) Degree of utilisation of specific loyalty programs among respondents belonging to each program, 2012 Degree of utilisation of specific loyalty programs among respondents belonging to each program, 2012 (table) Preferred loyalty program earning systems of respondents, 2012 Preference of respondents for earning and redemption opportunities across a single organisation or multiple different organisations, 2012 5.0 INSURANCE AND ASSISTANCE Penetration rates for insurance and assistance policy types linked to added value accounts and payment cards, 2012 Penetration rates for insurance and assistance policy types linked to added value accounts and payment cards, 2012 (table) Perceived value among respondents of insurance and assistance types linked to added value accounts and payment cards, 2012 Perceived value among respondents of insurance and assistance types linked to added value accounts and payment cards, 2012 (table) Relationship between penetration rates for insurance and assistance policy types linked to added value accounts and payment cards Payment Metrics: Consumer Attitudes towards and Usage of Traditional and Emerging Means of Payment in the UK (From Slideshare) Page 6/10
  • 7. Find Industry reports, Company profiles ReportLinker and Market Statistics >> Get this Report Now by email! and their perceived value among respondents, 2012 Claims / utilisation frequency among respondents for insurance and assistance policy types linked to added value accounts and payment cards, 2012 Claims / utilisation frequency among respondents for insurance and assistance policy types linked to added value accounts and payment cards, 2012 (table) 6.0 MOBILE / CONTACTLESS PAYMENTS Possession and utilisation among respondents of contactless payment cards issued by banks, segmented by gender and age group, 2012 Awareness and utilisation among respondents of contactless payment cards issued by banks, segmented by gender and age group, 2012 (table) Utilisation among respondents of mobile banking, segmented by gender and age group, 2012 Utilisation among respondents of mobile banking, segmented by gender and age group, 2012 (table) Utilisation among respondents of mobile banking, segmented by make of mobile phone owned, 2012 Utilisation among respondents of mobile banking, segmented by make of mobile phone owned, 2012 (table) Frequency of utilisation of mobile banking functions among respondents utilising mobile banking, 2012 Frequency of utilisation of mobile banking functions among respondents utilising mobile banking, 2012 (table) Awareness among respondents with a mobile phone that opportunities to utilise mobile phones to make payments are likely to increase in future, segmented by gender and age group, 2012 Awareness among respondents that opportunities to utilise mobile phones to make payments are likely to increase in future, segmented by gender and age group, 2012 (table) Awareness among respondents with a mobile phone that opportunities to utilise mobile phones to make payments are likely to increase in future, segmented by make of mobile phone used, 2012 Awareness among respondents that opportunities to utilise mobile phones to make payments are likely to increase in future, segmented by make of mobile phone used, 2012 (table) Receptiveness among respondents with a mobile phone towards the concept of using mobile phones to make payments, segmented by gender and age group, 2012 Receptiveness among respondents with a mobile phone towards the concept of using mobile phones to make payments, segmented by gender and age group, 2012 (table) Receptiveness among respondents with a mobile phone towards the concept of using mobile phones to make payments, segmented by make of mobile phone used, 2012 Receptiveness among respondents with a mobile phone towards the concept of using mobile phones to make payments, segmented by make of mobile phone used, 2012 (table) Possession among respondents of mobile phones already enabled to make payments, segmented by gender and age group, 2012 Possession among respondents of mobile phones already enabled to make payments, segmented by gender and age group, 2012 (table) Possession among respondents of mobile phones already enabled to make payments, segmented by make of mobile phone used, 2012 Possession among respondents of mobile phones already enabled to make payments, segmented by make of mobile phone used, 2012 (table) Degree to which respondents with a mobile phone would naturally consider using 25 major consumer-facing organisations as a source of mobile payment solutions, 2012 Degree to which respondents with a mobile phone would naturally consider using 25 major consumer-facing organisations as a source of mobile payment solutions, 2012 (table) Billing or debit methods preferred among respondents with a mobile phone for settling payments made by mobile phone, segmented by gender and age group, 2012 Billing or debit methods preferred among respondents with a mobile phone for settling payments made by mobile phone, segmented by gender and age group, 2012 (table) Payment Metrics: Consumer Attitudes towards and Usage of Traditional and Emerging Means of Payment in the UK (From Slideshare) Page 7/10
  • 8. Find Industry reports, Company profiles ReportLinker and Market Statistics >> Get this Report Now by email! Preference of respondents for using a special wristwatch rather than a mobile phone or payment card for making contactless payments, segmented by gender and age group, 2012 Preference of respondents for using a special wristwatch rather than a mobile phone or payment card for making contactless payments, segmented by gender and age group, 2012 (table) 7.0 ONLINE PAYMENTS Frequency of usage of different online payment means, 2012 Frequency of usage of different online payment means, 2012 (table) 8.0 DOMESTIC / INTERNATIONAL REMITTANCES Frequency of need for paying individuals at home and abroad without being able to meet them in person, 2012 Frequency of usage of different means of making domestic remittances among respondents needing to pay individuals at home without being able to meet them, 2012 Frequency of usage of different means of making domestic remittances among respondents needing to pay individuals at home without being able to meet them, 2012 (table) Frequency of usage of different means of making international remittances among respondents needing to pay individuals abroad without being able to meet them, 2012 Frequency of usage of different means of making international remittances among respondents needing to pay individuals abroad without being able to meet them, 2012 (table) Approximate market shares of competing remittance means for domestic and international remittances, 2012 9.0 APPENDIX Payment Metrics: Consumer Attitudes towards and Usage of Traditional and Emerging Means of Payment in the UK (From Slideshare) Page 8/10
  • 9. Find Industry reports, Company profiles ReportLinker and Market Statistics >> Get this Report Now by email! Fax Order Form To place an order via fax simply print this form, fill in the information below and fax the completed form to: Europe, Middle East and Africa : + 33 4 37 37 15 56 Asia, Oceania and America : + 1 (805) 617 17 93 If you have any questions please visit http://www.reportlinker.com/notify/contact Order Information Please verify that the product information is correct and select the format(s) you require. Payment Metrics: Consumer Attitudes towards and Usage of Traditional and Emerging Means of Payment in the UK Product Formats Please select the product formats and the quantity you require. Site License--USD 3 280.78 Quantity: _____ Corp. License - 1 country--USD 3 936.93 Quantity: _____ Corp. License - 2 to 10 countries--USD 4 921.16 Quantity: _____ Global Corp. License--USD 6 561.55 Quantity: _____ Contact Information Please enter all the information below in BLOCK CAPITALS Title: Mr Mrs Dr Miss Ms Prof First Name: _____________________________ Last Name: __________________________________ Email Address: __________________________________________________________________________ Job Title: __________________________________________________________________________ Organization: __________________________________________________________________________ Address: __________________________________________________________________________ City: __________________________________________________________________________ Postal / Zip Code: __________________________________________________________________________ Country: __________________________________________________________________________ Phone Number: __________________________________________________________________________ Fax Number: __________________________________________________________________________ Payment Metrics: Consumer Attitudes towards and Usage of Traditional and Emerging Means of Payment in the UK (From Slideshare) Page 9/10
  • 10. Find Industry reports, Company profiles ReportLinker and Market Statistics >> Get this Report Now by email! Payment Information Please indicate the payment method, you would like to use by selecting the appropriate box. Payment by credit card Card Number: ______________________________________________ Expiry Date __________ / _________ CVV Number _____________________ Card Type (ex: Visa, Amex…) _________________________________ Payment by wire transfer Crédit Mutuel RIB : 10278 07314 00020257701 89 BIC : CMCIFR2A IBAN : FR76 1027 8073 1400 0202 5770 189 Payment by check UBIQUICK SAS 16 rue Grenette – 69002 LYON, FRANCE Customer signature:   Please note that by ordering from Reportlinker you are agreeing to our Terms and Conditions at http://www.reportlinker.com/index/terms Please fax this form to: Europe, Middle East and Africa : + 33 4 37 37 15 56 Asia, Oceania and America : + 1 (805) 617 17 93 Payment Metrics: Consumer Attitudes towards and Usage of Traditional and Emerging Means of Payment in the UK (From Slideshare) Page 10/10