Retailers such as chained pet care specialist Futterhaus recognise the decline in popularity of traditional store cards in Germany, and are embracing digital alternatives to reconnect with customers. This shift reflects a broader trend towards greater portability and accessibility, with consumers increasingly preferring digital solutions that offer personalisation and convenience.

In 2024, the demand for store cards in South Africa continued to rise as local consumers’ disposable income weakened due to the higher cost of living. However, such demand increasingly faced lower approval rates due to retailers adopting a more restrictive credit policy to reduce exposure to bad debt and improve their cash flow management. A prominent example is Mr Price reporting a 32% increase in demand for new accounts in its half-year 2024 report, with only a 19% approval rate. Similarly, Th

Competition remains one of the biggest concerns for store cards, both currently, and in the years ahead. Traditional credit cards continue to see growth in the US, and have progressively pushed further and further into what was traditionally store cards territory. This is especially true in the case of cobranded cards, which often combine the merchant-specific benefits of a store card, with the much broader acceptance network of traditional credit cards. In addition, the continued growth of Buy

In 2024, store cards in Denmark recorded further decline, continuing a long-term trend that sets the category apart from the overall card market. While the total number of cards in circulation, transaction volumes and values are all rising, store cards is following a different trajectory. All key indicators - circulation, transactions and value - are falling, reflecting the cards’ diminished role in consumer payments. This pattern is consistent with previous years, excluding a few exceptions, re

Store cards faced weak results in Sweden over the review period and this downward trend continued in 2024. Store cards have seen a decline in the number of cards, volume of transactions and cards expenditure for several years. Even inflation, which generally boosts card transaction values, and the pent-up demand seen post-pandemic, was unable to turnaround the decline seen in store cards. Swedes increasingly prefer payment more contemporary payment methods, such as cards, BNPL and mobile apps su

Store cards in Colombia posted another contraction in volume transactions in 2024, maintaining the negative trend witnessed throughout the review period. Growth in circulation numbers meanwhile was modest and well down on that recorded in 2023. Usage levels continued to be depressed by the increasing consumer preference for alternative types of financial cards that offer greater versatility, wider acceptance and more appealing added-value benefits in areas such as cashback rewards. This trend is

The use of store cards continued to decline sharply in Peru in 2024, as traditional store cards continue to be transformed into Visa or Mastercard credit cards. As a result, very few store cards are still working in some regional stores, being those which are still within their validity period. This switch to credit cards is preferable for consumers, as it enables wider usage of such cards in other establishments where Visa or Mastercard are accepted, instead of cards being exclusive to one stor

As occurred throughout the review period, store cards in Italy has seen circulation numbers and volume and current value transactions contract in 2024. The use of these instruments has been falling steadily for over a decade amidst growing consumer migration to other types of financial cards and digital payment solutions that offer greater convenience and flexibility, more attractive loyalty reward programmes, lower interest rates etc. This has prompted major retail chains to scale back investme

Store cards in Portugal witnessed its number of cards in circulation continue to fall in 2024, with the decline driven largely by retailers’ cards shifting to the credit cards category. Transaction value rose marginally, however, boosted by improvements in available income as inflation subsided, and beneficial Euribor rates. Growth was still relatively low, though. Store cards is losing ground and this trend is set to persist throughout the forecast period as competition from other financial car

Store cards remain a niche category in Norway, with transactions on these cards continuing to decline in 2024 as they lose appeal as a form of payment. While Norway is one of the most advanced societies in the world regarding card payments, the digitalisation trend has had little impact on store cards. As a result, store cards have become increasingly marginalised in Norway and represent less than 1% of all card payments in the country.

2024 saw store cards in Canada benefit from increased investment in innovation and flexible features. With inflation still high, consumers continued to seek to save money on shopping. Retailers and store cards issuers have adapted to clients’ demands by including appealing features to cards issued. For example, Home Depot launched a promotion whereby no interest is charged on a single transaction if paid in full within 24 months, and no interest is charged for any transactions if paid in full wi

2024 was the first year in some time that store cards in France rose in terms of number, transactions and value sales, albeit posting only modest growth. In recent years, there has been a decline in the number of store cards in France, along with lower average spending on them. Key reasons include economic challenges, inflationary pressures and French consumers’ tendency to limit their use of plastic cards like store and loyalty cards. Instead, consumers have favoured charge cards and payment fa

Store cards are suffering in Spain in 2024, in main due to El Corte Inglés’ switch to credit cards, alongside the fact that store cards are generally seen as old-fashioned.

Store card spending in Thailand continues to show steady growth as retailers actively ramp up marketing efforts to attract customers and boost sales. Regular discounts, seasonal events like double day sales, and larger promotional campaigns are playing a key role in stimulating consumer spending. Leading retail chain HomePro, for example, has introduced an appealing trade-in programme for old electronic appliances, offering customers discounts of up to THB10,000 on new products. Meanwhile, Lotus

As occurred throughout the review period, store cards in Argentina is set to post declines in volume transactions and circulation numbers in 2024. Consumer interest in such products has been diminishing for several years in line with the growing preference for financial cards and payment tools that provide greater versatility and flexibility. Consequently, retailers are increasingly scaling back investment in this category or exiting it altogether, and instead teaming up with banks and fintech f

Store cards in Chile are witnessing a decline in popularity in 2024, primarily due to increased competition from bank-issued credit, debit, and pre-paid cards, which often offer lower interest rates and greater flexibility. Consequently, store cards are becoming niche products, appealing mostly to lower socioeconomic segments and customers seeking specific retail promotions.

2023 and 2024 have seen greater economic stability in Mexico, driven by low unemployment rates and a favourable exchange rate against the US dollar, which has represented an opportunity for department stores to capitalise on customers willing to spend more. An example is El Palacio de Hierro, a luxury department store; in 2023 it was reported that Grupo Palacio de Hierro’s total consolidated revenues increased by 11% compared with 2022. Thus, overall store cards also benefited, with growth of 6%

In Brazil, regardless of the economic challenges that fluctuate over the years, retailers have consistently found ways to overcome difficulties by innovating payment methods to keep selling their products. This is especially true for lower-income consumers, who face constrained budgets and greater difficulty accessing credit cards. Store cards represent a way to build customer loyalty, as these consumers tend to prefer stores that offer an established channel with easier instalment options.

Store cards, especially those from department stores, are designed to reward customer loyalty, offering exclusive benefits such as points, discounts, and special offers. Store cards is expected to remain the financial card type accounting for the smallest share of volume and value transactions in South Korea in 2024. Volume and current value transactions are expected to continue to grow in 2024, although only at low rates. This growth is largely being driven by the attractive rewards and benefit

In 2024, store cards in the UK remains the smallest financial card category and the weakest performer, with a 15% decline in the number of cards in circulation, and 10% and 12% declines in volume and value transactions, respectively. Due to the limited usage of store cards in the local market - linked to purchases from a specific retailer or retail group - and consumers' desire for greater flexibility and convenience from their payment methods, store cards continues to lose popularity in the UK.

In Japan, store cards are commonly known as Gaisho cards. Gaisho represents a unique business model, predominantly seen in department stores, akin to direct selling. Gaisho staff are seasoned professionals with exceptional skills and experience who regularly visit customers’ homes to take orders directly. This service is exclusive to a select group of affluent individuals. Gaisho cards, held by patrons of the Gaisho service, can only be obtained by those possessing significant wealth and high so

The number of store cards in Australia continues to decline in 2024, while the category’s value growth is marginal, with the number of transactions remaining below pre-pandemic levels. This performance is reflective of its lost appeal in the current dynamic payment landscape. Historically, store cards have always contributed to a small proportion of total payments in Australia. As a result, the customer base for this type of card is niche and loyal to a specific store or brand.

Store cards remained a niche in Austria in 2023, continuing a downward trend with a double-digit decline in transaction values despite the continuing shift to card payments. Most consumers in Austria are unfamiliar with store cards, and the usage of revolving credit in payment cards is uncommon compared to overdraft facilities. Retailers and service providers, therefore, prefer to issue conventional loyalty cards without a payment function. Additionally, they usually offer instalment plans or ca

There were no store cards with “pay later” options available in Turkey at the end of the review period. All cards issued by retailers are closed loop pre-paid cards that enable payment in specific retail outlets. Over the forecast period, prospects for store cards remain weak as consumers seeking “pay later” functionality have the established option of credit cards.