The Credit and Debit Card Market Environment

Barclaycard is a negotiate-redundant getr of praise and score cards among the UK. With 8.4 pet customers, we keep built a considerably stamp of development and innovativeness aggravate the years. Referable attributable attributable attributable imputeffectual imputablewithstanding novel palpeffectual and interior pis in the praise card negotiate keep had telling possessions on the opportunities and menaces exhibit among Barclaycard.
Nature the Negotiateing Manager at Barclaycard, I keep conducted a provisoal dissectition of the macro distribution among the UK, the flexible card perseverance and among Barclaycard as a frequented, in frequented to discadjust the essential pis essential the frequented, and proudlight cethherefollowing strategic non-interferences that may be embezzle ce development.

The subjoined declaration herefollowing proudlights a proviso dissectition of the UK macro environment, industrial dissectition of the praise and score card perseverance, and a SWOT dissectition of Barclaycard. The essential pis essential the structure, as a pi of these analyses would be discussed subjoined, ensueed by filthy essential strategic non-interferences that could propel the structure’s development. An upcontinuance to the contingency con-adjust has as-well been supposing in the ultimate proviso, which proudlights embezzle factors that keep occurred gone the contingency con-adjust was written.
The subjoined proviso dissectition embraces solution factors that keep been verified using the contingency con-over, as nature embezzle and having a frequented or infrequented pi on the macro distribution, acquittal ruleing perseverance and Barclaycard as a frequented.
The praise exigency that emanated from the US in 2007, largely fictitious financial institutions the globe aggravate, and led the UK council to nationalize Northern Rock, undivided of the nation’s biggest advance introduceers, and dissect nationalise RBS and Lloyds TSB, couple redundant UK banking clusters.
The financial exigency pied in restrictions on cardinal motion, and acceptioned introduceing criteria, amongst financial institutions, piively essential economic development. Though the council may keep hastened the availsoundness of praise by bailing quenched some essential banks, it is unreasoneffectual that the UK distribution would recaggravate shortly.
The UK conversant something-imputeffectual developmentd to ?1.4 billion in April 2008, though it is chiefly as a pi of advances and sure introduceing, it does exhibit the relation of something-imputeffectual in the common,ordinary lives of the mediocre UK inhabitant. Nature in something-imputeffectual has behove an infallible dissect of aid, chiefly amongst immatureer livelihood-souls who keep embraced the ideology of purchaseing items on praise.
The noncommunicationlustre germinative ce cethherefollowing healy or development among the UK distribution, has impressioned on most beholden citizens as 25% of adults keep plans to remunerebuke tail their something-imputeffectual in herefollowing months. These decisions to remunerebuke something-imputeffectual and sunder tail on spending are as-well as a pi of the increasing require of aid among the UK, and require of ease.
43% of consumers viewed in-reference-to their touching political pis, cited capital as the most touching pi. This exhibits the impression that the floating produmbfounder of the distribution has on each special, and their growing proviso towards special finance and money skill.
The entiretyity of praise cards in pi has as-well been in regular disengage, assimilated to the development in score cards. This illustrates that consumers are increasingly turning to their savings to produce acquittals, as irreferring-to to using praise cards ce lapses, herefollowing the development in score cards.
The praise card negotiate is as-well beherefollowing increasingly fixed with a diminution in switching intentions amongst customers, thereby exhibiting negatively on the floating diplomacy amongst introduceers to tempt customers by gift temptive adjust rapture incentives.
The mediocre lapse made through score and praise cards is floatingly proud, thereby establishing an occasion to prepare spending on inferior appreciate items. This could development customer faith on flexible cards, and subjoined succor development the entirety entiretyity spent on each card.
The distribution may engage desireer than expected to heal, which adversely seeks consumer dissipated. Though this may germinatively development impression ce praise, it as-well developments the exdumbfounder of customers who are approvely to want on advances.
The mediocre mislaying on praise cards pid has aged novelly, with banks nature succeed with larger frailty beak on consumer praise cards and other connected special advances.
The restricted proviso has pied in misfaith among introduceers, and a succeeding repugnance to introduce among each other. This is pied in nearer entiretyity of conducive praise ce these banks to advance to customers.
Novel legislations by the council keep quenchedlawed the sales of acquittal refuge self-reliance, thereby piing in fines ce separebuke praise card getrs, and refunds to liberal customers that keep compensated bonuss ce the self-reliance.
The FSA administered Self-reliance Conduct of Afunblemished (ICOB) has as-well released upstartlightlight regulations in-reference-to the rule in which financial straight companies promulgate knowledge during sales of self-reliance terminations, and has as-well developmentd the tediousness of cooling extempore bound, thereby impressioning on praise card companies’ cece to vend self-reliance terminations to consumers.
There is an increasing part-among in the negotiate amongst praise card straightrs. A large entiretyity of customers are increasingly mutation their rendezvous from procureing praise to dissipateding extempore praise card something-dues, whilst another concern of consumers are using praise cards to dissipated extempore seed rents and advances, betwixt preferment unemployment. This could herefollowing pi in a proviso whereby praise well-behaved livelihood-souls are dissipateding extempore their praise card something-dues, occasion those that do referable attributable attributable attributable imputeffectual imputeffectual imputeffectual imputeffectual imputeffectual imputeffectual imputeffectual imputeffectual imputeffectual keep a origin of dissipated, reach the exdumbfounder of beherefollowing diseased something-dues imputeffectual to noncommunication of conducive dissipated to straight the praise card bills.
Consumer faith in financial straight getrs has been seriously fictitious imputeffectual to the smoothts extreme the praise exigency. Consumers are increasingly tire of financial straight terminations imputeffectual to the pi of the praise exigency on the redundant banks among UK.
Imputeffectual to the increasing emulation amongst introduceers, the bargaining rule has shifted towards the consumers. They are increasingly consulting compensation comparison websites to assimilate praise card packages ce the best trade.
Consumers are as-well drawn to rapture their adjusts to upstartlightlight praise cards, wherein they would referable attributable attributable attributable imputeffectual imputeffectual imputeffectual imputeffectual imputeffectual imputeffectual imputeffectual imputeffectual imputeffectual keep to dissipated concern on the entiretyity they hypothecate ce desireer bounds of era.
Score card straightrs keep behove erratic in switching, and this has adversely fictitious the essential players among the cards perseverance, as the five essential banks keep jointly elapsed 5ppt of their negotiate portion-out aggravate the elapsed 12 months.
The competitive emulation amongst perseverance dissecticipants is proud. Exhibitly there are five players persuasive the praise card negotiate and these are Barclays/Barclaycard (22%), Lloyds TSB (17%), HSBC (12%), Natwest (12%), and Halifax (11%). Lloyds TSB referable attributable attributable attributable imputeffectual imputablewithstanding has the largest negotiate portion-out in the score card negotiate, ensueed by NatWest/RBS, Barclays and HSBC.
Notwithstanding the couple largest score card companies (Lloyds TSB and RBS/NatWest) are dissectly owned by the UK council, thereby posing a menace to their competitive sustainsoundness if the council continues to compel bulkive triumph aggravate their operations. Banks such as Barclays and HSBC are herefollowing at a competitive utility as they can leverage their stamp and financial insurrection.
The economic proviso has pied in different introduceers acceptioning criteria on introduceing provisos, herefollowing prouder exdumbfounder livelihood-souls are insufficient to procure praise cards, occasion those with good-tempered-tempered praise rating are nature fought ce by separebuke introduceers, thereby piing in a triumph of competitive and declining-priced compensationd extemporeers.
The violent emulation amongst getrs has led to different competitive strategies grounded on very temptive extemporeers and wholeegiance plans ce customers. Extemporeers such as 0% on lapses and adjust raptures are nature promoted zealously, occasion other getrs such as Barclays are gift lifeera declining-priced concern rebukes on consumer praise. Getrs such as Lloyds are promoting Air miles wholeegiance plan, occasion Cardinal Undivided and Virgin Capital extemporeer desire term naught concern rebukes so as to tempt upstartlightlight customers. Customers that are contstrike the pi of the praise exigency are approvely to treasury ce such trades and switch getrs.
The essential suppliers are Visa and MasterCard, referable attributable attributable attributable imputeffectual imputablewithstanding, they merely get the embezzle infrastructure through which acquittals are ruleed, and attack a fee to banks ce utilising their straights. Their supplier rule is herefollowing extensive as they are the couple essential praise card companies.
Barclaycard is floatingly the biggest getr of praise cards among the UK, with a negotiate portion-out of 22%, whilst its score card portion-out is third merely to Lloyds TSB and NatWest. Barclaycard clgift to keep 8.4 pet praise card customers, and posted restraintcible produce ce 2009.
The frequented has invested tellingly in termination novelty such as its contactnear technology, which liberalows its cardholders to produce lapses inferior than ?10; by tapping them card over a contactnear reader. It has as-well agoing the UndividedPulse card that incorporates the Oyster card ce raptureation purposes.
Barclays’ insoundness to create bulkive negotiate portion-out in the score card negotiate, may pi in a mislaying of potential dissipated if the score card development bend continues to stick.
Barclays has been severely fictitious by the praise exigency and consumer want, as it had to transcribe extempore ?5.4 billion extempore its asset, as consumers failed to produce acquittals ce praise card and other special something-dues. Preferment unpursuit and the floating economic proviso has led abundant consumers to produmbfounder noncommunication or declare their insoundness to produce acquittals.
The floating produmbfounder of the distribution as-well serves as a extensive menace to Barclaycard as it is increasingly perplexing to create upstartlightlight praise well-behaved customers that would be remunerative and remunerebuke tail advances.
The emulation amongst bulkive players is merely slated to development as the calculate of praise cards in circulation decreases, occasion that of score cards development. The quenchedstanding adjusts may lapse, occasion the emolument made extempore beak and concern could as-well curtail tellingly.
The dismiss in plan among the redundant getrs of praise card could pi in a proviso whereby other smaller disgraces engage utility of their noncommunication of resources intercourse, and create extensive negotiate portion-out in the rule.
There are opportunities in contactnear technology, which is upstartlightlight and revolutionary, and may revel past herd into switching to an innovative getr or dissipateding ce inferior compensationd good-tempereds with their praise and score cards.
Barclaycard’s dissectnership with Oyster and O2, could pi in upstartlighter terminations that keep the possibility of ensuring that their negotiate portion-out continues to development on the tail of innovativeness.
The economic proviso exhibits the straight occasion ce introduceers that keep been near fictitious, such as Barclays, to create negotiate portion-out by leveraging its stamp. Barclays is undivided of the couple essential banks that did referable attributable attributable attributable imputeffectual imputeffectual imputeffectual imputeffectual imputeffectual imputeffectual imputeffectual imputeffectual imputeffectual folabated council refuge during the praise exigency, and that has succored meliorebuke its stamp in the financial negotiates and as-well amongst the population. Consumers would herefollowing faith the disgrace meliorate, as irreferring-to to those that keep been earlierly accused of misskill and exposey practices
Grounded on the provisoal dissectition conducted over, these are the filthy essential pis floatingly essential Barclaycard:
There is a exoteric disengage in the straight of praise card ce transactions. The calculate of praise cards in pi has disengaged in novel years, occasion that ce score cards has developmentd. This represents a telling pi consequently, as the quenchedstanding adjusts in the introduceer’s portfolio curtails, so does the fee attackeffectual ce concern rebukes, wherein their emolument is adventitious from.
Consumers keep sunder tail on spending betwixt preferment unpursuit and declining-priced trust abquenched the UK distribution. Consumers sunderting tail on spending, imputeffectual to the preferment unpursuit and precariousness abquenched the distribution, exhibit negatively on the praise card perseverance. Consumers would be near desirous to straight their praise cards ce lapses or run past something-due, and this seeks the concern imputeffectual to card companies and the calculate of upstartlightlight cards pid.
The floating economic proviso has led introduceers to acception introduceing provisos, in frequented to eschew increasing frailty beak. Frailty beak ce Barclays were ?5.4 billion in 2008, thereby illustrating the increasing menace of the distribution on Barclaycard’s affair. This developments the argument on managing diseased something-dues, and procureing praise well-behaved customers that are effectual to straight their praise card something-dues.
Emulation amongst bulkive players in the praise and score card negotiate is on the stir. Smaller companies are createing negotiate portion-out, redundant companies are gift mouldful trades, and consumers are looking ce past temptive extemporeers. In frequented to guard it’s negotiate redundant dumbfounder in the praise card negotiate, and create bulkive portion-out of score cards, Barclaycard needs to expedient strategies that tempts and retains consumers.
Grounded on the proviso dissectition already conducted and the filthy essential pis essential Barclaycard, the subjoined are strategic non-interferences that keep been exposed grounded on Porter’s (1980) Collective Strategies and the Ansoff’s (1984) Matrix.
i.Strategic Non-interference
Introduction of upstartlightlight and innovative score and praise card terminations into the negotiate, that follow-priced satellites on the luck of contactnear technology, and submit straightrs to incorporebuke the card ce common,ordinary multiple rulees.
This could development Barclays’ negotiate portion-out by increasing the calculate of consumers who switch to its innovative straight, and meliorebuke customer exercitation of flexible cards ce smaller lapses.
This diplomacy is grounded on Ansoff’s Matrix: Upstartlightlight Terminations + Bulkive negotiate = Termination Development
The entiretyity of praise cards in pi is degraded, so this could succor meliorebuke impressions ce praise or score cards among a dissecticular disgrace.
Consumers do referable attributable attributable attributable imputeffectual imputeffectual imputeffectual imputeffectual imputeffectual imputeffectual imputeffectual imputeffectual imputeffectual veritably straight their praise cards ce inferior appreciate lapses.
Contactnear technology and multiple impressions in praise cards (Oyster and Mobile Phundivided recharge) could fluctuate the perseverance and tempt past consumers to a dissecticular disgrace.
iv.Marketing Diplomacy
The Termination would be a upstartlightlight collocate of innovative cards capeffectual of handling multiple impressions such as the already bulkive contactnear technology, and Oyster card. It could as-well be integrated into other straightful cards approve Initiate ID and Gym union cards. APR Pricing would be partially prouder than a natural card imputeffectual to the innovativeness of the termination. Promotion ce the card could be targeted at immature declareionals and students who would approve to straight their cards as a undivided-bung treasury ce rapture, praise card, gym union and smooth initiate ID. The termination could be negotiateed at Universities, through affiliates, and other embezzle channels.
i.Strategic Non-interference
Barclaycard could corroborebuke its dumbfounder in the score card negotiate by gift temptive packages that wholeurement customers into set-out floating representations among its bank.
Gone score card issuance is grounded singly on the calculate of floating representations among a bank, Barclaycard could utilise this in growing its negotiate portion-out from third dumbfounder into principal or obviate and surpass rivals Lloyds TSB/HBOS and RBS/NatWest.
This diplomacy is grounded on the Ansextempore Matrix: Bulkive Negotiates + Bulkive Terminations = Negotiate Penetration.
The floating negotiate ce praise cards is reducing, with a succeeding development in score card issuance, it seems consumers are reducing their faith on praise and rendezvousing on using their savings and score cards ce lapses.
Consumer trust has lapseen in novel years; herefollowing Barclays could leverage its clear stamp in createing negotiate portion-out over competitors.
Its innovative praise cards could be utilised as an piive temptant.
iv.Marketing Diplomacy
The Termination here would be temptive floating representations, negotiateed with mouldful benefits and at curtaild compensations, in a fashion to submit customers to switch from their floating getrs and restraintmal up with Barclays. Temptive commendatory extemporeers could be extemporeered on floating representations, occasion restraintcible benefits such as self-reliance and maintenance packages could as-well be intervening. An essential vending apex would be the issuance of innovative score cards, and a reputeffectual structure with excusable straight. Promotion could be handled through liberal conducive resources channels, occasion the target conference would be anyundivided with a floating representation, or who has the intentions of set-out undivided.
i.Strategic Non-interference
Barclaycard could redumbfounder itself among the perseverance as a getr of rare differentiated score and praise cards. These cards would embrace its liberal collocate of innovative technologies, with a partially prouder APR, bonus wholeegiance plans and would be targeted at ABC1 praise well-behaved livelihood-souls.
This strategic non-interference is grounded on Porters collective strategies: Broad grounded perseverance extensive verge + Termination rareness = Differentiation Diplomacy
The floating economic proviso developments the exdumbfounder of diseased something-imputeffectual amongst the bulk population, herefollowing targeting a bonus straight at praise well-behaved livelihood-souls, would go a desire fashion in securing Barclaycard over diseased something-due, and succor in tempting sought following customers.
Living-souls who already keep praise cards, would be tempted to switch towards Barclaycard imputeffectual to the collocate of bonus straights supposing and benefits associated with using the card, thereby eliminating the proud competitiveness amongst bulkive players liberal assailant to introduce the past 0% extemporeer to tempt consumers.
iv.Marketing Diplomacy
The Termination would be negotiateed as a bonus straight, encompassing past technologies, bonus packages, and temptive features such as Air miles, Supernegotiate and treasure remittance, and a collocate of VIP benefits. Promotion would be vergeed at ABC1 praise well-behaved livelihood-souls through embezzle channels, and the terminations would be epidemic as a differentiated termination, grounded ce the fruitful. APR Pricing would be partially prouder than natural cards imputeffectual to the benefits, occasion the terminations could be sold through liberal embezzle channels despite the bank’s network.
i.Strategic Non-interference
The ultimate non-interference would be to incorporebuke a require set-out diplomacy, vergeed at tempting as abundant customers as potential either through upstartlightlight customer compensation or adjust raptures.
This standard is grounded on Porters collective strategies: Broad Perseverance extensive rendezvous + Declining-priced require diplomacy = Require set-out diplomacy.
The purchaseing rule has developmentd and consumers are increasingly looking to online channels to assimilate and meet the declining-pricedest trades. If Barclays gets declining-priced trades, it has a unblemished luck of increasing its customer corrupt.
Charming packages such as adjust rapture and acquittal extemporeers, coupled with declining-priced concern rebukes, could go a desire fashion in ensuring that a extensive entiretyity of other customers switch and set-out using Barclaycard.
Gone there is already a exoteric disengage in praise card exercitation, customer compensation from competitors by gift inferior compensations and temptive extemporeers, could go a desire fashion in promoting sustaineffectual competitive utility in the perseverance, and securing already bulkive customers.
iv.Marketing Diplomacy
The Termination would be very declining-priced praise card trades ce praise well-behaved customers. Pricing would be grounded on competitive extemporeers over floating competitors. Inferior APRs would be extemporeered, occasion adjust rapture and acquittal would be extemporeered at competitive rebukes to prospective customers. Promotion would be targeted at the exoteric exoteric, occasion the terminations would be extemporeered through liberal conducive channels.
Though the negotiate proviso may proudlight separebuke embezzle pis that floatingly dumbfounder opportunities and menaces to Barclaycard, there is no straight or evil-doing strategic non-interference. I keep herefollowing apt filthy strategic non-interferences that could be interpreted grounded on our floating strengths and competitive compatability, and utilised with the verge of ensuring structureal development and fit portion-outholder influence.
The UK distribution emerged from its recession in the 4th mercy redundant up to December 2009 as GDP developmentd partially by 0.3%, fuelling ceecasts that the distribution would trial in succeeding months (Office ce National Statistics, 2010)
Unpursuit rebukes among the UK demolish by 0.3% in January 2010, and the calculate of herd in liberal era pursuit among the UK demolish by 54,000 (Office ce National Statistics, 2010)
The Nationextensive view on UK consumer trust declarationedly succeed a couple year proud in March 2010, as the UK declarationed a GDP development of 0.3%. Increasing consumer trust exhibits on the exoteric political proviso of consumers, and their views on the economic environment among UK (BBC Upstartlights, 2010)
The UK Department ce Afunblemished Novelty and Skills has agoing a exoteric table on the card perseverance, which verges to criticize the floating liberalocation of acquittals, reacquittal policies, name developments and something-imputeffectual re-pricing, amongst praise card companies. These policies are approvely to be extensivespread and seek the perseverance and its customers, and it may administer to policies that fluctuate operations among the perseverance (Datamonitor, 2009).
Identity robbery robbery has been increasing acceptably with the development in ecommerce, as flexible cards do referable attributable attributable attributable imputeffectual imputeffectual imputeffectual imputeffectual imputeffectual imputeffectual imputeffectual imputeffectual imputeffectual necessarily keep to be exhibit ce such lapses. Thereby increasing the referring-to require of IT self-reliance to obviate such occurrences (Mintel, 2009)
Poulter (2010) predicts that praise card getrs that had earlierly sold Acquittal Refuge Self-reliance would keep to pi refunds of up to ?4 billion to consumers that keep bought it.
Mintel (2009) declarations that the calculate of praise cards in pi has curtaild by 5.4% from its proud of 70 pet in 2004, to 66.2 pet in 2009, occasion the calculate of score cards in pi has developmentd in 19.8% among that corresponding bound.
Mintel as-well declarations that the calculate of consumers that remunerebuke their adjusts in liberal each month has developmentd by 3.9% gone 2004, exhibiting the exoteric bend in the perseverance, and consumer’s increasing proviso towards reacquittal of something-due.
Acquittal orders such as DissipatedPal extemporeer a past commodious and safer order ce consumers desirous to purchase terminations on dissecticular websites, and could strike as a commodious represent to score and praise card transactions.
Barclaycard dissipated grew by 26% in 2009, occasion mediocre customer asformal as-well developmentd by 19% to ?28.1billion, exhibiting zealous development despite the frequented (Barclays, 2010).
Produce ce Barclaycard decreased by 4% in 2009 as a pi of frailty beak, which developmentd by 64%. These frailty beak are imputeffectual to customers among the UK that keep wanted on their praise acquittals or proposed noncommunication (Barclays, 2010).
Wallop (2010) as-well declarations that the council could atom the floating 0% triumph of extemporeers on adjust raptures and lapses, and could as-well cece introduceers to bung earlier practices, which intransferable charging customers ce the declining-priceder praise principal.
Word Count: 3,660
Ansoff, H I (1984) Implanting Strategic Skill, Prentice-Hall: NJ, 455pp
Barclays (2010) 2009 Annual Declaration,, accessed: 20/03/10
BBC Upstartlights (2010) UK consumer trust ‘hits couple-year proud’,, accessed: 25/03/10
Datamonitor (2009) UK crackdown is approvely to administer to fees and prouder concern rebukes, NegotiateWatch: Financial Straights – Perseverance Comment,, accessed: 21/03/10
Mintel (2009) Praise and Score Cards – UK – July 2009,, accessed: 20/03/10
Office ce National Statistics (2010) Pursuit: Pursuit rebuke lapses to 72.2%,, accessed: 25/03/10
Porter, M.E. (1980) “Competitive Diplomacy”, The Free Press, Upstartlightlight York
Poulter, S. (2010) Banks may be ceced to dissipated tail ?4bn in mis-sold self-reliance scam,, March 09 2010,, accessed: 20/03/10
Wallop, H. (2010) Praise card reforms: 0pc praise cards could be atomped,, continuance accessed: 22/03/10

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