United States Co-Branded and Affinity Cards Market Report 2019

Posted by Business Wire September 10, 2019

DUBLIN–(BUSINESS WIRE)–The “Co-Branded and Affinity Cards in the U.S., 7th Edition” report has been added to ResearchAndMarkets.com’s offering.

Co-branded credit cards remain integral to issuers and retail partners alike: the report estimates that, in 2018, co-branded credit cards generated $990 billion in purchase value, up an average of 7.9% from 2016.

Travel and entertainment brands continue to dominate spending share, thanks to their high-spending affluent users. Co-branded card and loyalty programs increasingly serve as profit drivers for airlines – no surprise given the leverage industry consolidation and the treasure trove of customer information they can share with issuers keen to cross-sell products and services.

The stakes are high: At American Airlines alone, some $3.1 billion in program miles were earned in 2018, while $3.4 billion in miles were redeemed.

Yet retailer co-branded credit card purchase value grew at the fastest annual rate travel and entertainment co-brands. Costco AnyWhere Visa performance has helped lift the entire segment, surpassing $100 billion in purchase value in 2018 while helping issuing partner Citibank build loans – an uncommon task for a co-branded card program that has begun to pay off.

Meanwhile, the rewards train continues to gather steam, as consumers continue to convert their non-rewards cards an assortment of rewards-based options. Ironically, while rewards are important to co-branded credit card users, they don’t trump the fundamentals: Attributes such as 100% fraud protection and great customer service rate higher.

Key Topics Covered:

1. Executive Summary

  • Co-Branded Credit Card Market Size
  • Airline Co-Branded Card and Loyalty Programs
  • Hotel Co-Branded Card and Loyalty Programs
  • Retailer Co-Branded Card Programs
  • Co-Branded and Affinity Credit Card Usage Trends
  • Co-Branded Credit Card Application Influencers and Rewards Preferences
  • Co-Brand and Affinity Credit Card Issuers

2. Market Size and Forecast

  • Co-Branded Credit Card Market Size
  • Top 10 Co-Branded Credit Card Programs
  • Co-Branded Credit Card Market Share, by Top Issuers and Card Networks
  • Number of Co-Branded Credit Card Programs

3. Airline Co-Branded Card and Loyalty Programs

  • Airline Co-Branded Credit Card Programs and Partners
  • By the Numbers
  • Portfolio Wins and Losses
  • Consumer Analysis: Frequent Flyers & Airline Co-Branded Card Users
  • Frequent Airline Travelers
  • Frequent Flyer Program Usage Generally Tracks Airline Use over Time
  • Frequent Flyer Programs Do What They Set Out To Do
  • Delta Holds Loyalty Program Enrollment Crown
  • Southwest Holds Loyalty Program Engagement Crown
  • Business & Leisure Travelers: Opportunity across Flying Frequency Spectrum
  • Demographics
  • Sizing up the Big Three
  • American, Delta, and United
  • Operating Revenue and Passenger Miles
  • Loyalty Program Revenue Passenger Miles and Award Redemptions
  • Deferred Loyalty Program Liability: Parsing the Billions in Revenue
  • In Focus: Delta Air Lines
  • A leader in Customer-Focused Metrics
  • Co-branded Credit Card Program Is a Cash Cow
  • $100 Billion in Purchase Value?
  • Part of a Multi-Billion-Dollar Loyalty Program
  • In Focus: American Airlines
  • Advantage Underpinned by Co-Branded Program
  • The Fruits of Renegotiation
  • Purchase Value Crosses $90 billion
  • Advantage: The Revenue Story
  • Advantage: The Miles Usage Story
  • Advantage: The Card Story
  • In Focus: United Airlines
  • Metrics
  • Gunning for More Partner Revenue
  • MileagePlus Card Acquisitions Pick Up Steam; Purchase Value Lags
  • MileagePlus: The Revenue Story
  • MileagePlus: The Miles Usage Story
  • MileagePlus: The Card Story

4. Hotel Co-Branded Card and Loyalty Programs

  • Co-Branded Hotel Credit Card Programs
  • Consumer Analysis: Hotel Loyalty Program & Co-Branded Card Users
  • Hotel Credit Card Users
  • Hotel Credit Card Users, Hotel Loyalty Program Membership and Redemption
  • Demographics
  • In Focus: Marriott
  • Hotel Superpower
  • The Marriott Bonvoy Revenue Story
  • Marriott Bonvoy Credit Card Program: The Metrics
  • Marriott Bonvoy: Nuts and Bolts
  • Merger and Starwood Integration
  • Marriott Bonvoy: The Cards

5. Retailer Co-Branded Card Programs

  • Retailer Co-Branded Credit Card Brand Partnerships
  • Club Stores: Sizing Up the Big Three
  • Net Sales Trends
  • Demographic Analysis
  • Omni-Channel Purchasing Trends
  • In Focus: The Costco Credit Card Program
  • AnyWhere Visa Is Largest Co-Branded Program
  • What Exclusivity Buys
  • Hard Benefits That Resonate with Affluent Costco Shoppers
  • Going for the Loyalty Trifecta
  • In Focus: The Sam’s Club Credit Card Program
  • Options Include Sam’s Club Mastercard
  • Sam’s Club Mastercard: Purchaser Value and Loans
  • Sam’s Club Mastercard: Distinguishing Features and Loyalty Proposition
  • In Focus: The BJ’s Wholesale Club Credit Card Program
  • Successful Partnering with Alliance Data Systems and Visa
  • Building the Customer Base and Fostering Loyalty
  • BJ’s Perks Plus Visa: Distinguishing Features and Loyalty Proposition

6. Co-Branded and Affinity Credit Card Usage Trends

  • General-Purpose Credit Card Usage Trends, by Card Type
  • General-Purpose Credit Card Usage in Past 30 days
  • General-Purpose Credit Card Active Usage Rates
  • General-Purpose Credit Card User Demographics, by Card Network
  • Cards in Wallet: Co-Branded/Affinity vs. Not Co-Branded/Affinity
  • Usage Rates
  • Co-Branded/Affinity Credit Card Users Have Card-Friendly Wallets
  • Visa Co-Branded/Affinity Credit Cards
  • Excluding Charge Cards, American Express Has Highest Share of Co-Branded
  • Types of Co-Branded and Affinity Cards Used
  • Co-Branded/Affinity Credit Card Demographic Analysis
  • Co-Branded/Affinity Card Users
  • Co-Branded/Affinity Card Users, by Major Category
  • Co-Branded/Affinity Card Users, by Card Network

7. Co-Branded Credit Card Application Influencers and Rewards Preferences

  • Co-Branded Credit Card Application Influencers
  • Winning Generation Z and Millennial Wallet Share with Financing Options
  • Rewards Credit Cards: Usage Trends over Time
  • Cash Back, Points, Airline, Hotel and Other
  • Rewards Credit Card Usage Trends, by Card Network
  • Rewards Credit Card Usage Trends: Cash Back and Points vs. Airlines and Hotels
  • Rewards Credit Card Demographics: Cash Back and Points vs. Airlines and Hotels
  • Co-Branded Credit Card Users: Attitudes Toward Rewards
  • Consumer Rankings of Importance

8. Co-Brand and Affinity Credit Card Issuers

  • Alliance Data Systems
  • Co-Branded Cards Accounting for Increasing Share of Business
  • An evolving client base
  • Competitive strategies
  • Private Label and Co-Branded Credit Card Partners
  • Client Signings and Related Momentum
  • The Co-Branded Card Connection
  • Co-Branded Credit Card Purchase Value Trends
  • American Express
  • 50+ Co-Branded Programs Globally
  • Co-Branded Credit Card Programs
  • Co-Branded Credit Card Purchase Value Analysis
  • Co-Branded Credit Card Purchase Value Trends
  • Bank of America
  • Focus on Strong Demographics, Multi-Product Appeal
  • Co-Brand Card Programs
  • Barclays
  • Largest European Credit Card Issuer
  • Co-Branded Credit Card Programs
  • JetBlue
  • Co-Branded Credit Card Purchase Value Trends
  • Capital One
  • Co-Branded Program Generates More Value than Private Label
  • Program Partners
  • Impending Walmart Launch
  • Citibank
  • Citi-Branded Cards vs. Citi Retail Services
  • Co-Branded Credit Card Programs
  • Major Co-Branded Card Partners
  • Co-Branded Credit Card Purchase Value Trends
  • First National Bank of Omaha
  • JPMorgan Chase
  • Consumer, Small Biz General Card Operations Are Largest by Purchase Value
  • Co-Branded Credit Card Programs
  • Synchrony Financial
  • Co-Branded Credit Cards in the U.S.
  • U.S. Bank
  • Visa Dominates Co-Branded Programs

9. Appendix

  • Background
  • Major Retailer Benefits: Usable Data and Customer Loyalty
  • Major Cardholder Benefit: Buying Power
  • Methodology
  • Consumer Survey Methodology
  • Market Size and Forecast Methodology
  • Table Indexes
  • Terms and Definitions
  • Active card user
  • Call data
  • Compound annual growth rate (CAGR)
  • Credit card trust
  • Co-branded credit cards and affinity credit cards
  • General-purpose credit card
  • Own-branded credit card
  • Private label (store) credit card
  • Purchase value
  • Revenue passenger mile
  • Self-reported credit score
  • Tender share

For more information about this report visit https://www.researchandmarkets.com/r/6k050r

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