The European consumer credit market is underserved across all groups despite a developed payment infrastructure.

The European vs US consumer credit market gap is about €1.1 trillion, despite both economies broadly the same size in terms of GDP. Consumer credit (excluding mortgages and student loans) is just 5.2% of GDP in Europe vs. 12.5% in the US.

Moreover, credit penetration in all European countries lags the US despite a sophisticated payment infrastructure that is comparable to the US. The five largest economies in Europe account for 67% of GDP with just 5.8% consumer credit penetration. (European Central Bank)

The US is probably the most developed consumer credit market with a history of consistent credit scoring metrics (e.g., Credit Bureau Data) and an array of different products specifically designed for the non-prime market.

Based on historical growth, credit card ownership penetration in Europe will take 20 years to reach current levels in the US. (World Bank Global Findex Database 2017)