Co-Branded Credit Cards in the U.S. Experience Shifts Amidst COVID-19 Pandemic

Strategic Insights -

The U.S. co-branded credit card market has experienced significant changes due to the COVID-19 pandemic. This report, the "Co-Branded Credit Cards in the U.S., 8th Edition," provides an in-depth analysis of the market, including retailer and travel cards, focusing on features, benefits, marketing, and loyalty program strategies, as well as growth trends. The report highlights the impact of the pandemic on the retail and travel sectors and the co-branded credit card market, with specific analysis of key issuer programs, retailer initiatives, and consumer use of co-branded cards.

Key Takeaways:

  • The COVID-19 pandemic has accelerated credit card usage as consumers turn to credit to pay down debt and finance essential purchases.
  • The retail and travel industries have been slow to recover, with significant declines in purchase volume and revenue for largest co-branded card programs.
  • American Airlines, Delta Air Lines, and Marriott International have seen significant revenue drops, while Amazon's co-branded credit card program has experienced significant growth.
  • The largest co-branded credit card programs have responded to the pandemic by adjusting rewards categories, increasing digital commerce, and promoting payment safety and security.
  • Co-branded card issuers, including American Express, Capital One, and Chase, have implemented strategies to combat credit card churn and increase customer engagement.
  • Key retailer co-branded credit card programs, such as Amazon Prime Credit Cards, Costco Anywhere Visa, and Target RedCard, have seen significant growth and increased consumer affinity.

Statistics:

  • The COVID-19 pandemic has resulted in a 25% decline in purchase volume for the top 10 co-branded card programs.
  • The largest co-branded card programs have seen revenue drops of up to $76 billion, with global aviation losses exceeding $370 billion.
  • 30% of consumers have co-branded cards, with significant opportunities for growth in the retail and travel sectors.
  • The largest co-branded credit card programs have responded to the pandemic by adjusting rewards categories, with travel rewards being the most popular among consumers.
  • American Express has achieved acceptance parity with Visa and Mastercard, while Capital One has partnered with Walmart to offer a co-branded credit card program.

Sources:

  • ResearchAndMarkets.com, "Co-Branded Credit Cards in the U.S., 8th Edition"
  • Financial reports from American Airlines, Delta Air Lines, Marriott International, Amazon, Costco, and Target
  • Industry reports from Fitch Ratings, Moody's, and S&P Global Market Intelligence.