Consumer Credit in the United Kingdom decreased to 859 GBP Million in May from 1944 GBP Million in April of 2025. This dataset provides the latest reported value for - United Kingdom Consumer Credit - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Consumer lending, excluding student loans, in the United Kingdom (UK) reached nearly 33.51 billion British pounds in March 2025. These figures have thus recovered from the stark decline suffered in April 2020. The value of new consumer credit granted also decreased during the economic crisis of 2007, although more gradually. The category consumer lending includes loans and advances to individuals through credit cards and personal loans. The majority of consumer credit is through credit card lending. Mortgage lending The value of outstanding mortgage lending in the UK is far higher than that of consumer credit. Additionally, the outstanding volume of consumer credit has fluctuated more in the past, while mortgages have had a more consistent growth. In the second quarter of 2024, the value of gross new mortgage lending in the UK amounted to over 60 billion British pounds. Credit card payments With billions of British pounds in gross consumer lending through credit cards, it’s unsurprising that the number of credit cards in circulation in 2022 was nearly as high as the number of people in the UK. The number of credit cards peaked in 2005, and it slightly decreased in the following months. However, there were still nearly 56 million credit cards in issue in the UK in 2023. The average amount spent per purchase on credit cards in the UK was roughly 59 British pounds in November 2024. This figure is much lower than the spending limit of most credit cards.

In April 2025, most consumer loans in the United Kingdom (UK) were granted by monetary financial institutions (MFI). Nevertheless, other lenders gave over 12.4 billion British pounds worth of consumer credit. During the past years, non-bank lenders have been increasing their market share. Credit cards made up most of the new monthly consumer lending in the UK.

Over the five years through 2024-25, credit bureaux and rating agencies’ revenue is slated to fall at a compound annual rate of 5% to £2.3 billion. Geopolitical issues, particularly the forced stoppage of operations in Russia, have hurt the industry, mainly through lower deal rates and lost synergies with companies’ Russian branches. This also ate into profitability, cutting off some of the highest-ticket deals, which are the most profitable for rating agencies. Brexit restructuring has further influenced the market, with companies being forced to split their UK and EU operations. At the same time, weak economic conditions have held impeded revenue – low confidence and the high interest rate environment have meant there’s been less borrowing across the economy over the past few years, meaning less demand for the services credit rating agencies provide. In 2024-25, revenue is anticipated to climb by 3.2%. Increasingly favourable economic conditions, interest rate cuts and an upturn in deal-making are expected to stimulate borrowing. This will feed through to higher demand for credit rating services, as lenders require credit checks prior to approving loans. Over the five years through 2029-30, revenue is forecast to expand at a compound annual rate of 2.7% to £2.7 billion. Mounting demand for ESG rating services, which have been brought in by a number of major rating agencies, will be a key driver of this growth. Additionally, falling rates and a likely end to skyrocketing inflation will provide a more suitable environment for borrowing, ramping up demand for credit rating services.

United Kingdom Credit Cond: CL: N3: AB: Factor: Pressures from Capital Market data was reported at 0.000 % Point in Sep 2018. This records an increase from the previous number of -0.900 % Point for Jun 2018. United Kingdom Credit Cond: CL: N3: AB: Factor: Pressures from Capital Market data is updated quarterly, averaging 0.450 % Point from Jun 2007 (Median) to Sep 2018, with 46 observations. The data reached an all-time high of 21.200 % Point in Sep 2011 and a record low of -50.100 % Point in Sep 2007. United Kingdom Credit Cond: CL: N3: AB: Factor: Pressures from Capital Market data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s United Kingdom – Table UK.KB021: Credit Conditions Survey: Corporate Lending: Next 3 Months.

Credit card issuance revenue is slated to dip at a compound annual rate of 1.3% over the five years through 2024-25 to £16.7 billion, although it’s expected to climb by 2.6% in 2024-25. The COVID-19 outbreak dealt a hefty blow to credit card issuers as households used their cards for fewer purchases. The cost-of-living crisis has been both a blessing and a curse – on the one hand, households have turned to credit cards to pay for necessities as disposable incomes have fallen; on the other, it’s caused a higher rate of default and a lower level of total spending. Rampant inflation has made revenue very volatile. Drops in disposable income have left households scrambling to pay for necessities, with the ONS finding that 21% of adults had to use personal loans or credit cards to afford their living costs across 2023-24. This has been good for the industry, as issuers benefit from more transaction fees and have more customers with outstanding balances on which they collect interest. However, there are some negatives, namely the jump in defaulting. Consumer information company Which? estimates that two million households missed some repayment in April 2023, dealing a blow to credit card issuers’ revenue and denting their profit. In 2024-25, inflation is easing back down, falling to 2.3% in April, while interest rates remain at a high of 5.25%, upping profit for the industry. Credit card issuance revenue is forecast to expand at a compound annual rate of 3% over the five years through 2029-30 to reach £19.3 billion. The credit card industry is bracing for future changes. Intensified regulations, like the FCA's Consumer Duty, will put pressure on issuers, increasing costs and affecting profit. Credit card issuers will also grapple with shifting demographic trends, as Gen Z and millennials show a growing preference for debit cards over traditional credit cards. However, competition looms from BNPL platforms like Klarna, which offer appealing alternatives and are currently exempt from regulation. The burgeoning e-commerce sector offers a bright spot, with credit card companies anticipating increased usage of credit cards for online purchases, bolstering transaction fee revenue.

As of late October 2024, most of the outstanding consumer lending in the United Kingdom (UK) were overdrafts, as well as loans and advances other than credit cards. Consumer credit peaked in February 2020, but dropped sharply two months later before slowly starting to recover again. The category other, which includes overdrafts and other loans and advances made up most of the outstanding credit. Meanwhile, credit cards amounted to approximately a third of the outstanding consumer loans. Nevertheless, credit cards made up most of the new monthly consumer lending in the UK. A likely reason for this discrepancy is that credit card debt tends to be paid in a shorter term than other types of credit.

The UK equity lending market is a rapidly growing industry, with a market size of XX million and a CAGR of 5.00%. The key drivers of this growth are the increasing demand for alternative lending options, the growing popularity of online lending, and the favorable regulatory environment. The main trends in the market include the increasing adoption of fixed rate loans and home equity lines of credit, the growing market share of online lenders, and the increasing availability of credit to underserved borrowers. The key restraints in the market include the strict credit criteria of traditional lenders, the high cost of borrowing, and the potential for fraud and abuse. The UK equity lending market is highly fragmented, with a large number of small and medium-sized lenders. The major players in the market include Barclays Bank, Bank of England, Selina Advance, Aviva UK, Nationwide Building Society, Coventry Building Society, Royal Bank of Scotland, Legal and General, LV Friendly Society, and Onefamily. These lenders offer a variety of products and services, including fixed rate loans, home equity lines of credit, and unsecured loans. The market is also characterized by a high degree of competition, with lenders offering a variety of incentives to attract customers. Recent developments include: In February 2022, Selina Advance, a London-based fintech business, has raised USD150 million in investment to expand its home equity lending solutions to customers across the UK. The round of fundraising, coordinated by global private equity platform Lightrock, included USD 35 million in equity and USD 115 million in loans from Goldman Sachs and GGC to help the company expand across the UK., On February 2, 2022, Santander announced its decision to stop originating residential mortgages and home equity lines of credit (HELOCs) . Santander will continue to service existing home loans and lines of credit received till February 11, 2022.. Notable trends are: Raising Homeownership Rate is Driving the Home Equity Lending Market.

This statistic shows the amount owed to banks in consumer credit lending in the United Kingdom (UK) as of the end of March 2017. In total 58 billion British pounds are owed to either bank or non-bank institutions for dealership car financing. In total 67 billion is owed in credit card lending and 72 billion British pounds in personal loans, overdrafts and other lending.

As of October 2024, monetary financial institutions (MFI) granted most of the lending to individuals in the United Kingdom (UK). Meanwhile, other non-bank lenders gave approximately 275 million British pounds worth of loans just in March 2024. During the past years, non-bank lenders have been increasing their market share. Non-MFI lenders also had a growing market share of the new consumer lending market in the UK.

United Kingdom Credit Cond: CL: N3: AB: Factor: Market Share Objectives data was reported at 1.200 % Point in Sep 2018. This records an increase from the previous number of 1.100 % Point for Jun 2018. United Kingdom Credit Cond: CL: N3: AB: Factor: Market Share Objectives data is updated quarterly, averaging 2.800 % Point from Jun 2007 (Median) to Sep 2018, with 46 observations. The data reached an all-time high of 25.200 % Point in Dec 2013 and a record low of -29.900 % Point in Dec 2007. United Kingdom Credit Cond: CL: N3: AB: Factor: Market Share Objectives data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s United Kingdom – Table UK.KB021: Credit Conditions Survey: Corporate Lending: Next 3 Months.

UK Home Equity Lending Market size was valued at USD 10.2 Billion in 2024 and is projected to reach USD 18.7 Billion by 2032, growing at a CAGR of 7.9% during the forecasted period 2026 to 2032.

​The UK home equity lending market is experiencing notable growth, driven by several key factors. An aging population with insufficient retirement savings has led to increased demand for equity release products, allowing homeowners to access the value tied up in their properties. Additionally, rising property values have enhanced homeowners' equity, making such financial products more accessible and appealing. The integration of financial technology (fintech) has further streamlined the borrowing process, offering digital innovations that enhance customer experiences and operational efficiency. Moreover, financial institutions are adapting to evolving regulatory guidance by adjusting lending criteria to support homeownership goals, as evidenced by Santander's recent changes to mortgage affordability assessments. Collectively, these factors contribute to the dynamic expansion of the UK's home equity lending market.

The 10 largest mortgage lenders in the United Kingdom accounted for approximately 81 percent of the total market, with the top three alone accounting for 41 percent in 2023. Lloyds Banking Group had the largest market share of gross mortgage lending, with nearly 36.8 billion British pounds in lending in 2023. HSBC, which is the largest UK bank by total assets, ranked fourth. Development of the mortgage market In 2023, the value of outstanding in mortgage lending to individuals amounted to 1.6 trillion British pounds. Although this figure has continuously increased in the past, the UK mortgage market declined dramatically in 2023, registering the lowest value of mortgage lending since 2015. In 2020, the COVID-19 pandemic caused the market to contract for the first time since 2012. The next two years saw mortgage lending soar due to pent-up demand, but as interest rates soared, the housing market cooled, leading to a decrease in new loans of about 100 billion British pounds. The end of low interest rates In 2021, mortgage rates saw some of their lowest levels since recording began by the Bank of England. For a long time, this was particularly good news for first-time homebuyers and those remortgaging their property. Nevertheless, due to the rising inflation, mortgage rates started to rise in the second half of the year, resulting in the 10-year rate doubling in 2022.

United Kingdom Credit Cond: CL: L3: AB: Factor: Pressures from Capital Market data was reported at 0.000 % Point in Sep 2018. This records a decrease from the previous number of 0.900 % Point for Jun 2018. United Kingdom Credit Cond: CL: L3: AB: Factor: Pressures from Capital Market data is updated quarterly, averaging 0.750 % Point from Jun 2007 (Median) to Sep 2018, with 46 observations. The data reached an all-time high of 25.100 % Point in Jun 2007 and a record low of -38.200 % Point in Dec 2007. United Kingdom Credit Cond: CL: L3: AB: Factor: Pressures from Capital Market data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s United Kingdom – Table UK.KB020: Credit Conditions Survey: Corporate Lending: Last 3 Months.

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Carbon Credit Market Size 2025-2029

The carbon credit market size is forecast to increase by USD 1,966.3 billion at a CAGR of 32.1% between 2024 and 2029.

The market is experiencing significant growth due to rising emissions in the Earth's atmosphere, which necessitates the need for businesses and individuals to offset their carbon footprint. Booming investment and partnership deals in this market are driving its expansion, with various organizations recognizing the importance of reducing their carbon emissions and contributing to environmental sustainability. However, the fluctuating prices of carbon credits pose a challenge for market participants, as they can impact the profitability of carbon offsetting projects.
To stay competitive, market players must closely monitor carbon credit prices and adapt their strategies accordingly. In summary, the market is witnessing increasing demand due to growing environmental concerns and regulatory requirements, but its growth is influenced by the volatility of carbon credit prices.

What will the Carbon Credit Market Size during the forecast period?

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The market has gained significant traction in recent years as businesses and individuals seek to offset their carbon emissions and contribute to the global decarbonization effort. This market facilitates the buying and selling of carbon credits, which represent the right to emit a specific amount of greenhouse gases. The voluntary carbon market plays a crucial role in this context, enabling organizations to offset their carbon footprint beyond regulatory requirements. Net-zero greenhouse-gas emissions have become a key business objective, driving demand for carbon credits from various sources. Forestry projects are a significant contributor to the market. These projects involve the protection, restoration, or reforestation of forests, which act as carbon sinks, absorbing and storing carbon dioxide from the atmosphere.
Carbon emission reduction projects, such as renewable energy and energy efficiency initiatives, also contribute to the market. Carbon storage projects, including those focused on geological storage, are another essential component. The market's dynamics are influenced by various factors, including regulatory policies, market prices, and technological advancements. As the world moves towards a low-carbon economy, the demand for carbon credits is expected to continue growing, making it an attractive investment opportunity for businesses and individuals alike.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Power
  Energy
  Transportation
  Industrial
  Others


Type

  Compliance
  Voluntary


Geography

  Europe

    Germany
    UK
    France
    Italy


  Asia

    China


  North America



  Rest of World (ROW)

By End-user Insights

The power segment is estimated to witness significant growth during the forecast period.

Carbon credits represent financial instruments that enable organizations to invest in emission reduction projects, contributing to the global effort to transition from fossil fuels to renewable energy sources. These initiatives, which focus on conservation, biodiversity, and livelihoods, provide a means to reduce greenhouse gas emissions and mitigate the effects of climate change.

Additionally, the energy sector, specifically power generation, can benefit significantly from this shift, as renewable energy sources offer a sustainable and non-depleting alternative to coal and natural gas. To achieve the international goal of limiting global temperature rise to 2°C or 1.5°C above pre-industrial levels, the reduction of greenhouse gas emissions is crucial. Carbon credits facilitate this transition by incentivizing investment in renewable energy projects and reducing the overall carbon footprint.

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The power segment was valued at USD 61.30 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

Europe is estimated to contribute 84% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The European Union (EU) held a significant share of The market in 2023, with countries like the UK and Germany being major buyers. To achieve climate neutrality by 2050, the EU established the International Emissions Trading System (ETS) in 2005, which sets the cost of CO2 emissions

The UK consumer credit market experienced challenging conditions in 2019. Lending in 2020 is set to rise by 5%, but overall growth will remain flat at around 4-5% throughout the rest of the forecast period. This means gross advances are expected to total £372.4bn by 2023. The following factors will drive the market over the next few years: Read More

The non-depository financing industry's revenue has contracted at a projected compound annual rate of 2.1% over the five years through 2024-25. The COVID-19 outbreak caused a large drop in borrowing in 2020-21 as consumers faced a lack of spending opportunities, outweighing the gains from businesses taking out additional loans to stay afloat. The industry has also faced stronger regulatory oversight to combat the proliferation of overly risky and expensive loans. The cost-of-living crisis has caused consumer lending to swell as households rely on short-term borrowing to make up for weakened savings and costs outpacing wages. Soaring interest rates have caused the cost of mortgages to skyrocket, damaging revenue as buyers pull back and lenders are more cautious. The Non-Depository Financing industry's revenue is estimated to climb by 1.7% in 2024-25 – and is expected to total £6.7 billion. This comes from the much-anticipated sliding down of interest rates that will aid the mortgage market and big returns from newer sectors like OpenAI and sustainable technologies. Industry revenue is expected to swell at a compound annual rate of 2.4% to £7.6 billion over the five years through 2029-30. The need for credit is set to be supported by the previous erosion of savings from spiked inflation, leading to more loans needed for sizeable investments as confidence rebounds. Non-depositary financing companies will continue facing stiff competition from other types of lenders, like peer-to-peer lenders. The regulation constricting payday loans will continue to push services towards a lower margin and higher volume approach, aiding those with lower credit scores but dented industry profit. The high cost of mortgages and economic headwinds will settle and start to rebuild the housing market, supporting revenue.

The credit card penetration in the United Kingdom was forecast to continuously decrease between 2024 and 2029 by in total 0.9 percentage points. After the twelfth consecutive decreasing year, the credit card penetration is estimated to reach 60.68 percent and therefore a new minimum in 2029. The penetration rate refers to the share of the total population who use credit cards.The shown data are an excerpt of Statista's Key Market Indicators (KMI). The KMI are a collection of primary and secondary indicators on the macro-economic, demographic and technological environment in up to 150 countries and regions worldwide. All indicators are sourced from international and national statistical offices, trade associations and the trade press and they are processed to generate comparable data sets (see supplementary notes under details for more information).

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Credit Card Payments Market Size 2025-2029

The credit card payments market size is forecast to increase by USD 181.9 billion, at a CAGR of 8.7% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing prevalence of online transactions. The digital shift in consumer behavior, fueled by the convenience and accessibility of e-commerce platforms, is leading to a surge in credit card payments. Another key trend shaping the market is the adoption of mobile biometrics for payment processing. This advanced technology offers enhanced security and ease of use, making it an attractive option for both consumers and merchants. However, the market also faces challenges. In developing economies, a lack of awareness and infrastructure for online payments presents a significant obstacle. Bridging the digital divide and educating consumers about the benefits and security of online transactions will be crucial for market expansion in these regions. Effective strategies, such as partnerships with local financial institutions and targeted marketing campaigns, can help overcome this challenge and unlock new opportunities for growth.

What will be the Size of the Credit Card Payments Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free SampleThe market continues to evolve, driven by advancements in technology and shifting consumer preferences. Payment optimization through EMV chip technology and payment authorization systems enhances security and streamlines transactions. Cross-border payments and chargeback prevention are crucial for businesses expanding globally. Ecommerce payment solutions, BNPL solutions, and mobile payments cater to the digital age, offering flexibility and convenience. Payment experience is paramount, with user interface design and alternative payment methods enhancing customer satisfaction. Merchant account services and payment gateway integration enable seamless transaction processing. Payment analytics and loyalty programs help businesses understand customer behavior and boost retention. Interchange fees, chargeback management, and dispute resolution are essential components of credit card processing. Data encryption and fraud detection ensure payment security. Multi-currency support and digital wallets cater to diverse customer needs. Customer support and subscription management are vital for maintaining positive relationships and managing recurring billing. Processing rates, settlement cycles, and PCI compliance are key considerations for businesses seeking efficient and cost-effective payment solutions. The ongoing integration of these elements shapes the dynamic and evolving credit card payments landscape.

How is this Credit Card Payments Industry segmented?

The credit card payments industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. End-userConsumer or individualCommercialProduct TypeGeneral purpose credit cardsSpecialty credit cardsOthersApplicationFood and groceriesHealth and pharmacyRestaurants and barsConsumer electronicsOthersGeographyNorth AmericaUSCanadaEuropeGermanyUKAPACChinaIndiaJapanSouth KoreaSouth AmericaArgentinaBrazilRest of World (ROW).

By End-user Insights

The consumer or individual segment is estimated to witness significant growth during the forecast period.The market is a dynamic and evolving landscape that caters to businesses and consumers alike. Recurring billing enables merchants to automatically charge customers for goods or services on a regular basis, streamlining the payment process for both parties. EMV chip technology enhances payment security, reducing the risk of fraud. Payment optimization techniques help businesses minimize transaction costs and improve authorization rates. Cross-border payments facilitate international business, while chargeback prevention measures protect merchants from revenue loss due to disputed transactions. Ecommerce payment solutions provide convenience for consumers and merchants, with payment gateway integration ensuring seamless transactions. Rewards programs and buy now, pay later (BNPL) solutions incentivize consumer spending. Mobile payments and digital wallets offer flexibility and convenience. Merchants can accept various payment methods, including cryptocurrencies, and benefit from payment analytics and conversion rate optimization. Payment volume continues to grow, necessitating robust fraud detection systems and multi-currency support. Customer support is crucial for resolving disputes and addressing payment issues. Alternative payment methods cater to diverse consumer preferences. The payment experience is key

Comprehensive dataset of 59 Credit reporting agencies in United Kingdom as of June, 2025. Includes verified contact information (email, phone), geocoded addresses, customer ratings, reviews, business categories, and operational details. Perfect for market research, lead generation, competitive analysis, and business intelligence. Download a complimentary sample to evaluate data quality and completeness.