Declining interest: Growth is expected to slow in 2018-19, though revenue has grown overall

Operators in the Credit Card Issuance industry provide credit services to consumers and businesses by issuing cards with available credit lines that must be repaid in full to the issuer, often in instalments. Industry operators generate revenue from cardholders primarily through fees, interest and other charges agreed upon through contract. Issuers have increasingly adopted risk-based pricing models based on consumers’ borrowing habits and ability to pay their balances. Industry operators compete by offering customers lower rates, flexible payment options and rewards based on their more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Credit cards on issue and the amount of debt outstanding have risen in the past few years
  • The level of household debt is reaching unsustainable levels, having increased over the past five years
  • Tightening credit standards in the face of widening private indebtedness is expected to restrict revenue
  • Industry Report - Industry Key Buyers Chapter

    The Credit Card Issuance industry is dominated by the three major UK banks and HSBC. The four largest companies are expected to account for 70.8% of industry revenue in 2018-19. This reflects an industry with a moderate level of concentration. Concentration rose substantially during the economic downturn amid a number of mergers and acquisitions. Foremost among these was the merger of Halifax and Bank of Scotland to form HBOS in 2007, before Lloyds acquired the combined entity in 2009. Also contributing were the acquisitions of Abbey National and Alliance & Leicester by Santander. The industry contains a small number of enterprises, reflecting its high barriers to entry, with several of the larger players operating multiple brands to assist with product differentiation...purchase to read more.

    Additional Insights for the Credit Card Issuance Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Credit Card Issuance Industry are

  • Access to the latest available and most efficient technology and techniques
  • Having an extensive distribution/collection network
  • Superior financial management and debt management
  • IBISWorld analysts also discuss how external factors such as Expenditure by household income- highest quintile and Official bank rate in the Credit Card Issuance industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Credit Card Issuance Industry?

    The industry deals with issuance of credit and charge cards, which provide a line of credit or cash to businesses or consumers to use for purchases. Credit card balances roll over month to month. The balances can be repaid in full or on an instalment basis. Charge card balances must be paid in full monthly. Cards are not issued directly by Visa, MasterCard, Diners Club or American Express but these companies provide the transaction processing networks.

    Industry Products
  • Balance transfer cards
  • Low-interest cards
  • Interest-free and 0% purchase cards
  • Rewards cards
  • Bad credit and credit builder cards
  • Industry Activities
  • Extending credit via a credit card
  • Providing credit through a charge card
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Expenditure by household income- highest quintile
  • Official bank rate
  • Real private consumption expenditure
  • National unemployment rate
  • Demand from e-commerce and online auctions

  • Current Performance
  • Economic landscape
  • Consumer spending habits
  • Excessive consumption
  • Regulatory requirements
  • Creditable completion
  • Profit and market structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Economic impact
  • Paying by plastic
  • Reducing debt
  • Competitive pressures
  • Profit margins and market structure
  • Table: Credit Card Issuance Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Credit Card Issuance Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Banks
  • Building Societies
  • Credit Bureaux & Rating Agencies
  • Debt Collection Agencies
  • Non-Depository Financing

  • Products & Services
  • Rewards cards
  • Low-interest cards
  • Balance transfer cards
  • Interest-free and 0% purchase cards
  • Bad credit and credit builder cards
  • Other
  • Chart: Credit Card Issuance Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 45 to 64
  • Consumers aged 25 to 44
  • Businesses
  • Consumers aged 65 and over
  • Consumers aged between 18 to 24
  • Chart: Major Market Segmentation for the Credit Card Issuance Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitInterest expenseProvision for bad and doubtful debtsWagesRent, depreciation, utilities and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Credit Card Issuance

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Credit Card Issuance Industry

  • Industry Globalization
    Barclays plc, Lloyds Banking Group plc, The Royal Bank of Scotland Group plc, HSBC Bank plc,
  • Table: Barclays plc - financial performance
  • Table: Lloyds Banking Group plc - financial performance
  • Table: The Royal Bank of Scotland Group plc - financial performance
  • Table: HSBC Bank plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Credit Card Issuance Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Credit Card Issuance Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Credit Limit
  • A limit on the amount of debt that can be accrued on a credit card. The credit card issuer sets the limit by considering the earning capacity and credit rating of the borrower.
  • Credit Rating
  • A rating of an individual's or business' financial history, reflecting their ability to take on and service debt.
  • Icb
  • The Independent Commission on Banking was an inquiry in the United Kingdom set up to look at how best to promote stability in the financial system following the financial crisis.
  • Principal
  • The original size of the loan issued, which may or may not include certain other fees and costs. The principal reduces in size as the borrower makes repayments.
  • Revolving Credit Balance
  • Balance outstanding on a credit card that is rolled over to the next month, where interest charges accrue over the period.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Credit Card Issuance market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Credit Card Issuance:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Credit Card Issuance market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Credit Card Issuance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Would you like to speak to an IBISWorld representative?