Questions? +1 (202) 335-3939 Login
Trusted News Since 1995
A service for FOREX trading professionals · Friday, March 29, 2024 · 699,702,382 Articles · 3+ Million Readers

U.S. Co-Branded and Affinity Cards Market 2017-2020 - Deep Insight into a Market Contributing $860 Bn to U.S. Payments

Dublin, Nov. 22, 2017 (GLOBE NEWSWIRE) -- The "Co-Branded and Affinity Cards in the U.S. 6th Edition" report has been added to Research and Markets' offering.

Co-Brand and Affinity Credit Cards in the U.S. 6th Edition, provides deep insight into a market contributing some $860 billion in purchase value to U.S. payments.

The report emphasizes co-branded credit card program features and benefits analysis, partner and issuer co-brand card strategies and competitive trends, co-brand growth trends among issuers and networks, and related trend and opportunity spotting.

Against a backdrop of increasing rewards and renewals expenses, issuers have tools at their disposal to make co-brand programs work, including higher-than-average interchange, affluent relationship-building opportunity, and building lower-risk credit card loan balances. But in more and more respects, super-premium own-branded credit cards look more and more like co-branded airline credit cards; and mega-banks have the firepower to develop their own card portfolios to sufficiently leverage them.

Twelve co-branded credit card issuers that significantly participate in co-branding include nine of the ten largest credit card issuers by purchase value. Among them, co-branded share of consumer and small business credit card purchase value is 41%. The airline and hotel segments comprise 28% of co-branded credit card programs but contribute an outsized share of purchase value, underscoring the importance of travel and entertainment to co-branding.

However, airline co-brands have faced growth challenges, while hotel co-brands may be leaving too much on-site spend on the table. Echoing a private label trend, retail-co-branding is in growth mode, as issuers and networks tap purchase value opportunity and retailers leverage the programs to maintain or grow loyalty amidst an intensely competitive landscape.

More specifically, the report:

  • Identifies and segments the number of co-brand card programs and program partners by network, issuer, and partnership segment.
  • Assesses issuer co-brand/affinity and own-branded (proprietary) credit card program strategies, with specific co-branded card program market sizing, for Alliance Data Systems, Bank of America, Barclays, Capital One, Citibank, First National Bank of Omaha, JPMorgan Chase, Synchrony Financial, U.S. Bank, TD Bank and Wells Fargo.
  • Assesses the co-branding card strategies being employed by American Express, MasterCard and Visa.
  • Provides market segment analysis for co-branded airline cards, including partnership changes, revenue, passenger and revenue passenger miles analysis for airlines having co-branded programs; loyalty program usage trends; survey analysis focusing on the relationships among frequent flyer membership, frequent flyer redemption, frequent fliers, airline credit card usage and demographics; profiles for Delta Air Lines, American Airlines, United Airlines and Southwest Airlines, including loyalty program and co-brand credit card program revenue analysis, and program-related trends; and co-brand card program and program partner counts by network and issuer.
  • Provides market segment analysis for co-branded hotel cards, including cardable opportunity, detailed analysis of the Marriott-Starwood merger and its ramifications, as well as co-brand card and loyalty program market sizing; survey analysis focusing on the relationships among hotel loyalty program membership, frequent hotel users, hotel credit card usage and demographics; and co-brand card program and program partner counts by network and issuer.
  • Provides market segment analysis for co-branded retail cards, including co-brand card program and program partner counts by network, issuer and retail category; analysis of the Costco co-branded credit card program, including 2015-2017 program market sizing and profitability discussion; analysis of the Amazon co-branded credit card program, including the cards' relationship to Amazon Prime, purchase value estimates and forecast through 2020, and related survey analysis; and assessment of the role retailer-specific apps have in the Target and Macys loyalty and card programs.

Key Topics Covered:

CHAPTER 1: EXECUTIVE SUMMARY

REPORT SCOPE

REPORT SUMMARY

MARKET SIZE AND FORECAST
Co-branded credit card program purchase value
Number of co-branded credit card programs

TRENDS AND OPPORTUNITIES
Own-branded competition
Upping the rewards ante
Upping the expense ante
Making it work
Airlines in focus

MARKET SEGMENTATION ANALYSIS
The airline co-brand segment
The hotel co-brand segment
The retail co-brand segment: a tale of four card programs

CO-BRAND AND AFFINITY CREDIT CARD ISSUERS
Alliance Data Systems
Bank of America
Barclays
Capital One
Citibank
JPMorgan Chase
Synchrony Financial
U.S. Bank

CARD ASSOCIATION CO-BRAND AND AFFINITY CREDIT CARD STRATEGIES
American Express
MasterCard
Visa 26

CREDIT CARD USAGE TRENDS
Rewards credit cards: usage trends over time
Airline and hotel co-branded credit cards: usage trends over time

CO-BRAND AND AFFINITY CARD USERS
Types of credit cards used
Demographic analysis

CO-BRAND CREDIT CARD APPLICATION INFLUENCERS

REWARDS IMPORTANCE & CO-BRAND CARD SWITCH FACTORS
The power of rewards
Co-brand credit card used most: card switching motivators

CHAPTER 2: MARKET SIZE AND FORECAST

CO-BRANDED CREDIT CARD MARKET SIZE
Co-branded credit card purchase value, by network
Co-branded credit card purchase value, by issuer
Co-branded credit card purchase value, by issuer and network
Number of co-branded credit card programs
Partnership industry segments

CHAPTER 3: TRENDS & OPPORTUNITIES

OWN-BRANDED COMPETITION
Is this the peak of the co-brand credit card market?

UPPING THE REWARDS ANTE
Higher rewards rates
Cash back gets serious
What is cash back without loyalty?
Soft benefits must shine through

UPPING THE EXPENSE ANTE
Rewards expenses continue to climb
Acquisition levers, too
Renewals more expensive

MAKING IT WORK
Higher annual fees
Help wanted: well-qualified revolvers

AIRLINES IN FOCUS
Elite status gets more difficult; frequent flyer miles losing value
Entry-level cards to make up the difference?
Not just flight awards

CHAPTER 4: MARKET SEGMENTATION ANALYSIS

THE AIRLINE CO-BRAND SEGMENT
Overview and key trends
Programs and partners
Wins and losses
The business of airline loyalty programs
Sizing up the Big Three
Delta Air Lines
American Airlines
United Airlines
Southwest Airlines
Airline revenue and passenger analysis
Frequent flyer membership over time
Airline credit card users, by flying frequency
Frequent flyer program usage
Airline credit card users, frequent flyer program membership and program redemption
Flyers: Gender, Age and HH Income, 2017
Redemption, by Age and HH Income, 2017

THE HOTEL CO-BRAND SEGMENT
Co-branded hotel credit card programs
Cardable opportunity
What can the Marriott/Starwood merger tell us?
Hotel credit card users
Hotel credit card users, hotel loyalty program membership and redemption
Hotel credit card users, hotel loyalty program membership and program redemption

THE RETAIL CO-BRAND SEGMENT
Co-branded retailer credit cards
Network and Segment, 2017
What the Costco card program can tell us
What the Amazon card program can tell us
Amazon credit cards
What can Macy's and Target teach us about loyalty and app engagement?
Macy's
Target

CHAPTER 5: CO-BRAND AND AFFINITY CREDIT CARD ISSUERS

BANK OF AMERICA
Own-brand strategy: refining the brand proposition
Co-brand and affinity card programs
Co-brand cards
Still some affinity programs left

BARCLAYS
Co-brand credit card growth and trends
A travel and entertainment skew
JetBlue
Performance analysis

CAPITAL ONE
Co-brand moves
Cabela's: The last independent crown jewel
Outstanding, 2015-2016

CITIBANK
Competitive strategy
Own-brand moves
Co-brand moves
American Airlines
Costco

JPMORGAN CHASE
Value proposition
Own-branded card moves
Co-branded card moves
Affiliation, 2017
Key co-brand accounts

SYNCHRONY FINANCIAL
Growth strategies
Retail Card segment
Co-brand credit card performance analysis
Key co-brand credit card programs

U.S. BANK
Own-branded credit card trends
Co-branded strength and stability

OTHER PLAYERS
Alliance Data Systems
Commerce Bank
First National Bank of Omaha
TD Bank
Wells Fargo

CHAPTER 6: CARD ASSOCIATION CO-BRAND AND AFFINITY CREDIT CARD STRATEGIES

AMERICAN EXPRESS
Value proposition
Challenges and strategies
Hard benefits and soft benefits
Card portfolio
Own-branded credit cards
Co-branded credit cards
Co-brand purchase value analysis
Tale of the tape
Account departures
Core accounts
Global Network Services: co-brand connection

MASTERCARD
Co-branded credit card purchase value and programs

VISA 202
Co-branded credit card purchase value and programs

CHAPTER 7: CREDIT CARD USAGE TRENDS

GENERAL-PURPOSE CREDIT CARD USAGE TRENDS OVER TIME
General-purpose credit card usage in past 30 days
General-purpose credit card engagement rates over time
Demographic analysis: 2008 vs. 2017

REWARDS CREDIT CARDS: USAGE TRENDS OVER TIME

AIRLINE AND HOTEL CO-BRANDED CREDIT CARDS: USAGE TRENDS OVER TIME
Demographic analysis: 2010 vs. 2017

CHAPTER 8: CO-BRAND AND AFFINITY CARD USERS

TYPES OF CREDIT CARDS USED

DEMOGRAPHIC ANALYSIS
Co-branded/affinity credit card users, by card category
Co-branded/affinity credit card users, by monthly credit card spend & loans outstanding
Credit Card Loans Outstanding, 2017
Co-branded/affinity credit card users, by co-brand/affinity credit card partner/affiliation

CHAPTER 9: CO-BRAND CREDIT CARD APPLICATION INFLUENCERS

OVERVIEW
Co-branded credit card application influencers

GENERAL-PURPOSE CREDIT CARD USERS: CO-BRAND USERS VS. NON-USERS
Application influencers: perks, discounts and rewards
Application influencers: fees, interest and financing
Credit Card Holders vs. Non-Holders, 2017
Application influencers: other card benefits
Card Holders vs. Non-Holders, 2017

CO-BRANDED CREDIT CARD USERS: DEMOGRAPHIC ANALYSIS
Gender
HH income
Credit score

CHAPTER 10: REWARDS IMPORTANCE & CO-BRAND CARD SWITCH FACTORS

THE POWER OF REWARDS

CO-BRANDED CREDIT CARD USED MOST: CARD SWITCHING MOTIVATORS

Companies Mentioned

  • Alliance Data Systems
  • Amazon
  • American Airlines
  • American Express
  • Bank of America
  • Barclays
  • Capital One
  • Citibank
  • Commerce Bank
  • Costco
  • Delta Air Lines
  • First National Bank of Omaha
  • JPMorgan Chase
  • Macy's
  • MasterCard
  • Southwest Airlines
  • Synchrony Financial
  • Target
  • TD Bank
  • U.S. Bank
  • United Airlines
  • VISA

For more information about this report visit https://www.researchandmarkets.com/research/b6p8xw/cobranded_and

                    
                    
                    CONTACT: Research and Markets
                             Laura Wood, Senior Manager
                             press@researchandmarkets.com
                             For E.S.T Office Hours Call 1-917-300-0470
                             For U.S./CAN Toll Free Call 1-800-526-8630
                             For GMT Office Hours Call +353-1-416-8900
                             Related Topics: Credit Cards
                    

Primary Logo

Powered by EIN News


EIN Presswire does not exercise editorial control over third-party content provided, uploaded, published, or distributed by users of EIN Presswire. We are a distributor, not a publisher, of 3rd party content. Such content may contain the views, opinions, statements, offers, and other material of the respective users, suppliers, participants, or authors.

Submit your press release