Contactless, mobile, online and prepaid in the uk


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ReportsnReports adds a new report "Contactless, Mobile, Online and Prepaid in the UK" to its research store.

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Contactless, mobile, online and prepaid in the uk

  1. 1. Contactless, Mobile, Online and Prepaid in the UKKey to the future growth of payments players will be their positioning with regards to new paymenttechnologies as they continue to develop and evolve.Features and benefits  Understand the challenges facing contactless cards including the hardening of consumer attitudes against the technology  Effectively plan a mobile strategy by understanding where competitors stand in the market, and consumer attitudes towards mobile payments  Gain impartial insight into the industry through interviews with more than twenty senior industry insiders, both on and off the record  Stay competitive with detailed consumer insight of the growing online payment market together with exclusive insight as to expected changes  Plan and develop new prepaid strategies with market sizing and high level insight as to developments within the sectorHighlightsThere are an estimated 20 million contactless cards in issue in the UK. Despite strong promotion by Visaand Barclays, contactless has yet to attract a critical mass of merchants, although growing numbers arefinally signing up. Crucially, consumers remain unconvinced, with contactless cards little used and littledesiredGeneral purpose reloadable (GPR) cards will remain a growing (albeit specialized) area of the paymentsmarket, and are now in the pockets of 5.5 million consumers.Mobile proximity payments have taken a significant step, with live products in the market. Mobile proximitypayments are gaining attention in the UK following the release of the Orange Quick Tap phone in 2011.While the sector has taken great strides, it suffers from negative consumer perception, and as of yet nomajor critical mass successes.Buy your copy of this report @ Details:Published: July 2012No. of Pages: 74Price: Single User License – US$5250 Corporate User License – US$13125
  2. 2. Table Of contentsOVERVIEWCatalystSummaryEXECUTIVE SUMMARYContactless payment providers need to convince consumersConsumers have had mixed experiences with contactless cards, with little enthusiasm for further rolloutPrepaid in the UK grows beyond core market5.5 million consumers in the UK hold prepaid cardsMobile proximity payments have yet to gain consumer attentionMobile proximity payments are important to the industry, but consumers are yet to be convincedOnline payments continue to growCash leads the way in online paymentsCONTACTLESS PAYMENTS HAVE NOT CONVINCEDOverviewContactless technology has several usesContactless card issuance is growingBarclays Group is leading the market in contactless card issuanceVisa goes long on contactlessUK retailers are slowly but steadily rolling out contactless acceptanceConsumers remain apathetic to contactless usage in the UKOnly 5% of consumers have and use a contactless cardContactless may lack added value for many consumers and merchantsThere has been a mixed experience for consumers with contactless cards, with little enthusiasm forfurther contactless rolloutOnly one third of consumers who do not hold a contactless card are interested in the conceptConsumers 34 years old and under account for nearly 60% of contactless card usersThere is a gender gap in contactless card usageUsage of open loop contactless cards in transportation is likely to facilitate wider growth in contactlesspaymentsThe challenges for making open loop contactless work on TfLs network have mostly been overcomeThe Olympics is being used as a significant platform for contactless paymentsExpectations for the futurePREPAID IN THE UK IS GROWING BEYOND ITS CORE MARKETOverviewPrepaid cards exist in a variety of forms, targeted at specific audiences and needsGPR cards can be split between core cards and conduit cardsPrepaid cards require a variety of players in the value chainThe role of the program managerThe role of the issuerThe role of the processorThe role of the program manager is in decline
  3. 3. The second Electronic Money Directive came into play in 2011GPR cards have a variety of revenue streamsThe necessary fees on GPR cards limit uptake5.5 million consumers in the UK hold prepaid cardsKey players in the GPR market include Cashplus and VirginCashplus is targeted at consumers with credit problemsBy contrast, Virgins success is strongly driven by its brandingConsumers report they predominantly use their prepaid cards for online spending or to give as giftsThe gift card sector remains an important part of the prepaid sectorThe government sector represents considerable opportunity for prepaidBrazil has used prepaid cards as a means of economic developmentGPR cards are more attractive to the 25–34 marketMost consumers do not see the need for GPR cards, but fees are not the key factorThere are four conditions necessary for GPR to become a mainstream payment methodPrepaid cards can benefit from a targeted audienceMOBILE PROXIMITY PAYMENTS HAVE YET TO GAIN CONSUMER ATTENTIONOverviewProximity payments sit alongside P2P and m-commerce as a key form of mobile paymentMNOs remain key players in the mobile payments marketOrange has first mover advantageQuick Tap can now be topped up any credit/debit cardO2 has released the O2 Wallet to marketProject Oscar has been threatened by a European Union probeVisa is launching in 2012MasterCard is launching the PayPass wallet in 2012Technology players also report they intend to enter the UK in 2012 or 2013PayPal has been active in the mobile wallet sphereBarclays has entered the P2P market with the launch of PingitBarclaycard is also active in the mobile payments marketConsumers remain unconvinced by mobile proximity paymentsYounger consumers are more open to mobile proximity paymentsThere is a slight gender gap in mobile NFC interestOver two thirds of UK consumers claim they are uninterested in location-based offersDatamonitors proprietary NFC Adoption Model shows room for growthThe NFC Adoption Model identifies three target consumer groups for NFC based on current behaviorLess than 1% of UK consumers are likely to immediately take up NFCContactless could pave the route for mobile proximity paymentsONLINE PAYMENTS CONTINUE TO GROWOverviewThe UK remains the third largest online market globallyThere is significant potential in the UK for online transactionsCards lead the way in online paymentsPayPals penetration in the UK is double the global averageFlights and hotels are the largest merchant categories by value
  4. 4. Online shopping increases with education levels but remains high overallConsumers that do not shop online do so because of convenience and worries about online fraudAPPENDIXSUPPLEMENTARY DATA(Untitled section)ContactlessPrepaidOnlineMobileDefinitionsCredit cardDebit cardePurse/eWalletInterchangeMerchant service charge (MSC)Point-of-sale (POS) terminalMethodologyCards and payments databaseDatamonitors Financial Services Consumer Insight Survey has been expanded, providing improved, new,and valuable insightForecasting methodologyFurther readingAsk the analystDatamonitor consultingDisclaimerFind reports related to IT & Telecommunication @, Dallas North - Dominion Plaza,17304, Preston Road,Suite 800, Dallas 75252.+ 1 888 391 5441sales@reportsandreports.comConnect With Us: