News & Views - Savantor

Credit card outlook

Monday, 16 August 2010

Now we are in the middle of the holiday season it also seems to be survey season.  On the basis that what happens in the US happens in Europe sooner or later it was interesting to note that PayPal is now more popular among Americans for making online payments than debit cards according to a survey from Auriemma. The survey found that among the respondents who shop online:

·         credit cards continue to be the dominant method of payment, used by 70%.

·         39% use PayPal

·         37% use debit cards

·         more than three quarters of respondents actually have a PayPal account, up from 55% two years ago.

·         credit cards are considered the most convenient way to pay for online purchases - PayPal is rated as the most secure. 

Another survey by shows that British consumers spend £150 million on late payment credit card charges.  The research found that:

·         26% credit card holders have been charged at least once in the last 12 months for missing a payment.

·         8.5% have been charged three or more times in the same period. 

·         57% of credit card holders do not have a direct debit set up to pay off the minimum amount.

Also some worrying news for credit card issuers showed that during the first three months of 2010, write-offs rose to £1.25 billion – the second highest quarterly amount on record.  Undeterred by this Tesco has launched a new credit card which carries 0% interest on purchases for the first 13 months as well as a nine-month interest-free balance transfer deal. Apparently the most attractive credit card on the market at the moment.  Will other issuers respond?

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

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

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

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

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

Platform Selection

"Savantor's support in our platform selection process has enabled us to sustain our profitability and positioning for the future. Their advice and guidance was essential to our decision-making."

Robert Lambert, Head of Cards Strategy - Permanent tsb bank - Ireland

EMV Migration Planning

"It was a strategic imperative for the bank to be EMV compliant for our payment cards and the experience that Savantor brought to the company has proved to be invaluable."

Eddie Sweeney, Chief Technology Officer - AIB Bank - Ireland

Card Migration

"I was impressed by the speed with which the Savantor team were able to start delivering and as a team they have made a significant contribution to the success of the Programme."

Bjorn Niels, Programme Director - ABN AMRO Bank - The Netherland

Credit Risk Review for New Product Launch

"We needed expert help at short notice and Savantor were very impressive in their response and knowledge. The results were very clear and useful, enabling us to quickly make good progress on the next steps."

Sami Karhunen, Head of Business Intelligence and SME Sales - Point Transaction Systems Oy - Finland

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.