News & Views - Savantor

The continuing importance of payment cards

Thursday, 09 October 2014
The UK Cards Association has just released its card expenditure statistics for August 2014. For the first time ever, the number of debit and credit card transactions made in a single month passed one billion in August. This means that there are now over 375 card transactions made every second in the UK. The new figures confirm a growing trend for consumers to choose cards over cash for purchases. Factors driving this growth include the growing use and acceptance of contactless for low value payments; other factors are likely to be the continuing improvement in the economy as well as a positive growth in consumer confidence. Debit cards are increasingly the preferred method, with the growth in both the number and value of transactions increasing at a faster rate for debit than for credit cards. This preference is again being bolstered by the growing use of contactless for low value payments. Average transaction values for both debit and credit cards are, however, showing a persistent decrease over the last three years, also probably due to the continuing migration of low value cash payments to cards along with the increasing use of contactless cards. It is also likely online spending is boosting the number of smaller value transactions, particularly via smart phones and tablet devices. Yet the annual growth rate of the number of purchases continues to exceed that of the value of purchases since April 2011, again highlighting a growing consumer preference of more frequent use of cards for lower value payments. Whilst these figures indicate the continuing importance of cards to consumers, it is worth considering the impact that alternative payment initiatives are likely to have upon future trends. Consumers are becoming more and more familiar with using their mobile devices for payment purposes - applications such as Pingit and Paym, although P2P, help foster this familiarisation. It has recently been announced that Zapp, a subsidiary of VocaLink, is to partner with major retailers to offer a secure and simple way for their customers to pay for goods using just their mobile device and their existing bank account. This month also sees the launch of Apple Pay in the US, which if successful will no doubt be implemented in the UK. So whilst payment cards unquestionably represent a key means of payment in the UK today and are certainly winning the war against cash, it will be interesting to review their usage in the light of new payment innovations being introduced.
Savantor Services

Savantor Services

Savantor services are tailored to Client needs based on our core service areas

Specialist Resourcing Payments Strategy Platform Transition Operational Efficiency
Savantor Services

Job Opportunities

Consulting and contracting roles in the payments, mobile and banking arena within the UK and across Europe

View more
Savantor Services

Savantor Views

Find out more from our Savantor brochures, MarketEye back copies and Industry opinion

Collateral Market Eye News & Views Sign Up to receive MarketEye

Client Quotes

Payment Specialists

"Working close with Savantor's professionals over the years in the payment arena. I appreciate the skills and knowledge these guys have and will surely engage with them when opportunities arise. The current engagement with Savantor is full to satisfaction and beyond."

Idsert Walta, Head of Banking Categories - Nordea - Scandinavia

Acquirer Risk Assessment

"The expertise provided by Savantor has greatly helped us evaluate our risk position and to take the right steps in managing our future risks. Strong, disciplined planning and an ongoing willingness to work closely with our staff played an enormous part in making this a very successful well-delivered project which will greatly help us in achieving our business goals."

Mark Healy, Chief Risk Officer - NEOVIA Financial - UK

Payments Platform Strategy and Sourcing

"We were in urgent need of external independent expertise to supplement our internal resources. Senior consultants had to quickly integrate with our team and actively contribute. Their experts quickly forged strong working relationships and delivered to our brief. We enjoyed working with them to develop our future platform strategy."

Evert R Fekkes, SVP - Payment & Savings Services - Rabobank Nederland

Acquiring market insight and strategy review

"Savantor brought an independent perspective and valuable insight that enabled Rabobank to ratify options for delivery and future growth and make informed business decisions in support of our target business model. Having used Savantor on a number of strategic projects, we have no hesitation in recommending their services to others."

Evert R Fekkes, SVP Payment & Savings Services - Rabobank - Nederland

Expert Witness

"After searching extensively for the required industry expert in a complex litigation, Savantor was identified to have the necessary industry knowledge and expertise on a range of complex issues. Savantor provided clear advice and was able to quickly hone in on the key issues, but most importantly, generating pragmatic winnable answers."

Gavin Ingram, General Counsel & VP Strategic Planning - Global Blue - Asia Pacific

Moneris Solutions

"Savantor did an outstanding job of the review and I received nothing but positive feedback on the interaction with our management team."

Jeff Guthri, COO - Moneris Solutions - Canada

Market Insights

"Savantor did a good job in helping us understand the dynamics of a key growth area for Trionis. Savantor's ability to listen and their degree of commitment have always impressed me. They have been of great help in providing us important market insights and I would not hesitate to work with them again in future."

Ernst Verbeek, Managing Director - Trionis - Belgium

Credit Card Migration and Operational Support

"The bank has undergone significant transformation of its card business on both the issuing and acquiring sides. One business partner we have looked to for support in the areas of strategy, major project leadership, management analysis and ongoing business support is Savantor. The Savantor team has contributed to our success as we have leveraged their deep industry knowledge and broad range of operational skills."

Sean Sheehan, Service Management Director - Bank of Ireland

Clients - Request Support

Send us a support request and one of our specialists will be in contact to assist you.

Consultants – Upload your CV

Register your CV with us and gain access to a range of job opportunities through our online job search portal.