Strong financial backbone to venture into a new market with the introduction of credit cards.
Saw the opportunities available as credit cards as a new method of payments for goods and took advantage of it.
Annual transaction value per card is low to NatWest.*
Barclaycard as a credit card issuer was not international, limited to the UK.*
New credit card issues are susceptible to increased bad debt in the Barclays Bank.
As a new type of payment method Barclaycard must convince critics that uses of such a card is reliable and not susceptible to fraud.
Spending on credit and debit cards amounted to 43% of total retail sales*
Only 54% of UK adults owned credit cards, allowing for increased market penetration*
Technological developments and new products would improve security and flexibility of payment by plastic systems*
Company branded cards and store cards provided access to a base of new users and the opportunity to develop loyalty based tie.*
Short term macroeconomic situation in the UK was positive: real income increasing, low inflation, and strong economic growth.*
Convincing consumers to use credit cards at more retail locations including those where they have not traditionally used other methods of payments e.g. checks
Allowing consumers to use the ATM when they need a short-term loan.
New entrants such as industrializing societies offering similar products.*
Low annual percentage rate cards being offered by new entrants.*
Cannibalization of the credit card market by debit cards and electronic purse (smart) cards.*
Increased availability of other forms of credit.*
Increased opportunities for potential credit card fraud.*
Reliance on electronic communications, effect of View More »