US Co-branded Credit Cards Market Report 2021: More than 200 Types of Co-brand Credit Cards are in Force

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Aug 20, 2021, 16:00 ET

DUBLIN, Aug. 20, 2021 /PRNewswire/ -- The "Co-branded Credit Cards: Reinventing Themselves Post Covid Losses" report has been added to ResearchAndMarkets.com's offering.

This research explains how co-branded credit cards are essential to issuers rebuilding their credit card volume in a post-COVID world.

This report separates co-branded credit cards from private label credit cards (PLCC) because the markets are diverging. Private label credit cards face pressure from Buy Now, Pay Later lenders that do not affect bank-issued credit cards. Co-branded credit cards are vital components of bank-issued branded network credit cards.

"Issuers must nurture their programs, but they must be careful not to give away the bank," states Brian Riley, Director, Credit Advisory Service.

"Sometimes they must be willing to walk away from a deal. Other times, they might need a good-old-fashioned break-up," Riley continued, "But a well-run program can add scale, increase loyalty in retail customers, and set the pace for cross-selling.

Take American Express, Delta Airlines, Citi AAdvantage, or Chase United as examples. And then, there is Costco (Capital One) and Amazon to consider. The shift (and anticipated shift in the case of Amazon) impact both counterparties in the co-branded relationship."

Highlights of the research note include:

Why it makes sense to separate PLCC from co-brands
Current credit card volumes
Co-branded market volumes
The inner workings of a co-branded relationship
Not every relationship is forever-even in co-branding
Where the industry is headed
Strategic plays for credit card issuers

Key Topics Covered:

Executive Summary
Co-branded Cards and Private Label Credit Cards: Similar Concepts, Different Courses
Credit Card Volumes Have Not Recovered from COVID-19
Co-brand Partnerships are Complicated Legal Arrangements
More than 200 Types of Co-brand Credit Cards are in Force
Takeaways for Industry Participants
Conclusions
References

Key Insights

Co-brands and PLCC cards have some standard features in common, but face different market challenges.
With more than 500 million cards in force, reward cards account for 70%, and the largest segment is co-brands.
After a $100 billion decrease, it will take three years for revolving debt to return to pre-COVID levels.
Quarter after quarter, top issuers experienced decreases in revolving debt.
Co-branded credit cards carry responsibilities for financial institutions and their partners.
Co-branded partnerships break up for various reasons, including profitability, relationships, and technical prowess.
Twenty top airline co-brands offer incentives and a wide range of interest rates.

Companies Mentioned

AARP
Alliance Data
Alaska Airlines
Allegiant
American Express
American Airlines
Apple
Bank of America
Barclaycard
Capital One
Carnival Cruise lines
Choice Hotels
Chase
Citi
Conde Nast
Costco
Delta Airlines
Discover
Goldman Sachs
GM
Emirates Airline
Frontier Airlines
Hawaiian Airlines
Holland America Cruiselines
Jet Blue
LendingTree
Macy's
Mastercard
National Football League (NFL)
Lufthansa
PayPal
Priceline
PNC
Southwest Airlines
Spirit Airlines
SteinMart
Synchrony
USBank
United Airlines
Visa
Walmart
Wells Fargo
Wayfair
Williams Sonoma
Wyndham Hotels

For more information about this report visit https://www.researchandmarkets.com/r/la1iyk

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Research and Markets
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[email protected]

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SOURCE Research and Markets