Page 6: Conclusion
The UK affinity card market generates a lot of business. Cumulative royalty payments to participant organisations exceed £20 million from Bank of Scotland alone and one particular charity receives £2 million annually from this source.
The UK market is probably a long way from saturation, however. Of 42 million credit cards in the UK, only 2.2 million (about 1 in 20) are affinity cards. In the USA, the figure is 1 in 5. There remains room for growth.
Bank of Scotland sets out to be the dominant provider and is the market leader with a 56% market share. The bank currently handles more than 500 affinity groups, many of them with large, prestigious organisations. It is keen to strengthen its position in the face of increasing competition.