The UK credit card market is undergoing a period of transition in the context of shifting societal and political attitudes towards borrowing and debt. During the boom years, many individuals and households built up substantial amounts of personal borrowings relative to their income. Being in debt was no longer a social taboo; credit was easily available and relatively cheap; and the debt was easily shouldered. The economy was in a good shape, with low inflation, low interest rates and low unemployment, and confidence was running high.

The 2007-09 financial crisis put an end to all that, and three years on we’re still feeling the repercussions. For one, the credit card market is now much leaner and meaner as a result. Despite still operating in a fairly crowded marketplace, there are fewer suppliers than there were pre-crisis, and competitive pressures have eased.

This report examines how all these issues and challenges are reshaping the market. Drawing on a range of industry and consumer survey data, it provides a comprehensive and updated overview of the size and composition of the market, an evaluation of new technological and product innovations and an investigation into cardholder attitudes, behaviours and preferences.