The Future of the Credit Card Rewards Market: Turbulence in the Rewards Ecosystem

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Jun 15, 2020, 16:00 ET

DUBLIN, June 15, 2020 /PRNewswire/ -- The "Credit Card Rewards 2020: Another COVID-19 Victim?" report has been added to ResearchAndMarkets.com's offering.

Credit card reward programs, a consumer benefit of using a credit card, will undergo change as consumers and financial institutions adapt to the new world of COVID-19. Credit card issuers that rely on rewards to attract and retain customers must consider the changing economic realities and construct programs that do more than link to weakened co-brand partners.

While many consumers gravitate to cash-back rewards, co-brand programs that feature alliances with airlines, cruises, and hotels leave consumers with points that may not be useful for several years. Rewards with cash options, such as those issued by American Express, Bank of America, Capital One, Chase, Citi, and Discover will find consumers more likely to gravitate toward cash options than rewards that provide options for hospitality and travel.

This report analyzes consumer survey data on credit card rewards and applies a practical view of both the U.S. consumer and shortcomings in current reward programs. With more than 225 million credit cards targeted at hospitality, retail, and travel, card issuers need strategies that appeal to the new normal. Business is not business as usual today.

Highlights of the research report include:

The vulnerability of annual fees
Motivating spending when cardholders no longer buy
Turbulence in the rewards ecosystem
Reward innovation and the future of rewards
Changes in issuers' reward strategies

Key Topics Covered:

1. Executive Summary

2. Introduction

3. Cardholders: Things Were Going So Well

Rewards Usage in 2019
The Vulnerability of Annual Fees

4. The Disruptive Potential of Accelerated Attrition

Motivating Spending Is Tough When Cardholders No Longer Buy
Estimating High Risk for Attrition Accounts

5. Turbulence in the Rewards Ecosystem

Multiple Factors in Play Over the Next Three Years
Sponsor Brand Status
Cardholder Behavior
Changes to Issuer Rewards Strategy

6. Program Innovation and the Future of Credit Card Rewards

Grocery Is the New Plastics
The Big Winners May Be Cash-Back and Flex Rewards Programs
And of Course, Online Retail

7. Conclusions

8. References

Companies Mentioned

Albertson's
Ahold
Amazon
American Express
Bank of America
Capital One
Chase
Citi
Costco
Discover
FreshDirect
Grubhub
Hilton
Kroger
Marriott
Target
TD Bank
Uber
Walmart
Whole Foods

For more information about this report visit https://www.researchandmarkets.com/r/a52j5h

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