Pest analysis of credit card industry

Marketing Strategy The Product here would be attractive current accounts, marketed with lucrative benefits and at reduced prices, in a way to encourage customers to switch from their current providers and set up with Barclays.

Political factors affecting banking industry in uk

In July , they signed an agreement with PayPal in U. Identity theft fraud has been increasing consistently with the increase in ecommerce, as plastic cards do not necessarily have to be present for such purchases. Since there is already a general decline in credit card usage, customer acquisition from competitors by offering lower prices and attractive offers, could go a long way in promoting sustainable competitive advantage in the industry, and securing already existing customers. Justification The buying power has increased and consumers are increasingly looking to online channels to compare and find the cheapest deals. Chips have been implemented, requiring users to insert their card into debit machines rather than swiping them. Economic factors: Easily influenced The banking industry and the economy are tied. Such structures are required for customers in the allocated country and for international users. Consumers are also drawn to transfer their balances to new credit cards, wherein they would not have to pay interest on the amount they owe for longer periods of time. Minimizing the environmental footprint of our payments ecosystem 2. Environmental: Reduced footprint With the use of technology — particularly with mobile banking apps — the use for paper is being reduced. Consumer confidence has fallen in recent years; therefore Barclays could leverage its untarnished reputation in gaining market share against competitors.

Providers such as Lloyds are promoting Air miles loyalty scheme, while Capital One and Virgin Money offer long term zero interest rates so as to attract new customers. Justification The current economic situation increases the risk of bad debt amongst the mass population, therefore targeting a premium service at credit worthy individuals, would go a long way in securing Barclaycard against bad debt, and help in attracting sought after customers.

Mintel reports that the number of credit cards in issue has reduced by 5.

Mastercard pestel analysis

This illustrates that consumers are increasingly turning to their savings to make payments, as opposed to using credit cards for purchases, hence the growth in debit cards. Many banks offer a mobile app to witness accounts, transfer funds, and pay bills on smartphones. In June , it partnered with Klarna, which offers online acceptance and consumer lending in Europe. Their supplier power is therefore considerable as they are the two major credit card companies. Increasing consumer confidence reflects on the general social attitude of consumers, and their views on the economic environment within UK BBC News, b. Consumer confidence has fallen in recent years; therefore Barclays could leverage its untarnished reputation in gaining market share against competitors. Strength 1. Economic factors: Easily influenced The banking industry and the economy are tied.

Barclaycard claims to have 8. Leading operator for digital transactions and a segment leader: In the U. PEST analysis is a cornerstone of environmental scanning. Mastercard Incorporated can closely analyze the following factors before entering or investing in a certain market- Political stability and importance of Credit Services sector in the country's economy.

When preparing for the future, companies engage in strategic planning. Consumers are increasingly weary of financial service products due to the effect of the credit crisis on the leading banks within UK. Smaller companies are gaining market share, leading companies are offering lucrative deals, and consumers are looking for more attractive offers.

pestel analysis of banking industry slideshare

Lower APRs would be offered, while balance transfer and payment would be offered at competitive rates to prospective customers.

Further, Mastercard has also acquired NuData, a firm specializing in behavioral biometrics in May

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Mastercard Incorporated PESTEL / PEST & Environment Analysis[Strategy]