Credit card popularity ’set to continue’
The popularity of credit cards in the UK is in good health, according to one industry spokesperson.
Andrew Greenyer, vice president of international marketing at Group 1 Software, states that the credit card population grew by 12 million to 70 million in 2006.
He added that the volume of online card payments has increased by five per cent in the last half decade, reaching more than 300 million transactions per year.
Mr Greenyer commented on the store card market in a letter to the Financial Times.
He said: “It is entirely right that credit card users should have access to a highly competitive market, and that they should not be hit by disproportionate penalty charges.
“Although the balance of profits that bank issuers generate from their different products may have changed, we can feel pretty secure that the nation’s love affair with the credit card will run and run.”
Mr Greenyer added that the banking industry is currently in good health, making more profits per customer than the utilities, retail and mobile phone sectors.
In related news, research from The Co-operative Bank has found that green financial products do not necessarily lead consumers into debt.
Consumers with outstanding repayments to several creditors may wish to take out a debt consolidation loan to help sort their finances.
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