News & Views - Savantor

A decade in payments

Wednesday, 09 December 2015
The UK Cards Association has just issued a report showing the evolution of spending patterns in the UK over the last decade to 2014. The report shows how significantly the profile of spending over the past decade has changed with use of payment cards becoming much more prevalent than cash as the payment method of choice: in 2014, £566 billion was spent using cards, more than double the 2005 figure of £270 billion. Each month, increases can be seen in both the number of card transactions and the total value of transactions. Cash spending was overtaken by card spending in 2004; these days it is quite normal to use a card to pay for incidental spending such as a coffee or lunchtime sandwich – a trend facilitated by the rise in contactless cards and contactless-accepting retailers. The use of cards as a means of paying for transport has also been an area where the use of cards has become much more prevalent, again assisted by the use of contactless technology. Possibly the most important innovation during the past decade has been the introduction of Chip and PIN, providing greater security and fraud protection and enabling increased acceptance at establishments such as pubs, hairdressers and dentists and other similar retailers. Aside from the statistical data, it is interesting to see how payment patterns have been influenced not only by the available technology – which is in itself partially driven by consumer requirements – but also outside influences such as the state of the economy and consumer disposable income. In 2008 and 2009 there was the credit crunch and subsequent recession. During this period the number of credit cards in circulation decreased by over 9 million to 31.2 million; conversely the number of debit cards grew by over 7 million to 44.9 million. In particular consumer spending habits seemed to change as the UK began to emerge from the recession – people preferred to spend less but shop more often at discount and local stores as opposed to big out-of-town superstores. As a result of customer demand, more shops began to accept cards and this became the preferred method of paying for ad-hoc and minor essential purchases. One of the key areas where there has been a huge growth in usage is online, which now accounts for over 20% of spending. Consumer demand has led to it being possible to pay for an ever-increasing range of goods and services online, which has in turn impacted the retail market in terms of fulfilling this demand (see Savantor's View in the last edition of MarketEye.) So how will the next ten years evolve in terms of payment cards? It seems likely that contactless andonline will play a significant role – but it will be very interesting to look back over the next decade when the time comes and be able to see both the trends which actually evolve and the key players in the market in comparison to any current expectations we may hold.
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 Strategy and Operating Model

"Savantor brought an effective blend of European acquirer market expertise and transaction processing solution design. Their experts quickly forged strong working relationships with our team. We enjoyed working with them to create our future acquirer strategy."

Mikko Hyttinen, SVP - Lending Services - OP-Pohjola Group - Finland

Complex Multi-Country Migration

"This complex migration, undertaken simultaneously in Spain and Portugal, has been a complete success. Savantor has provided us with excellent support for over 3 years, both in the original business transformation programme and now this double migration. We value their open and honest approach to business, and of course the expertise that they bring."

Ricardo Gomez, Director, Operations & Technology - WiZink Bank – Spain & Portugal

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

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

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

Interchange Review

"Savantor did a superb job in confirming what we believed was an area of weakness. The detail we now have will enable us to agree internally what we need to do to improve structure, control and income. Nationwide management were very impressed with the quality of the Savantor team."

Adam Slater, Senior Manager - Banking - Nationwide Building Society - UK

Acquirer Specialist Support

"OP-Pohjola Group has used Savantors help in numerous different specialist projects differing from risk assessment to management tool creation to transaction analysis. We have been very satisfied by the quality of the service provided by Savantor's experts."

Kai Lindstrom, Head of Acquiring - OP-Services Ltd - Finland

Complex Cards Business Transformation

"This was a major business transformation that required us to build an excellent team made up of internal bank specialists, supported by external card business, technical and operations expertise. Savantor provided specialists from the local market and with international experience to fill a variety of important roles. The Savantor resourcing team are professional, reliable and good people to work with."

Ricardo Gomez, Director - Operations & Technology - WiZink Bank - Spain

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.