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Banking industry

Co-Branded Credit Cards in the U.S. Post-Pandemic: Key Trends, Issuers, and Consumer Behavior

Strategic Insights

— 1 min read

As the COVID-19 pandemic continues to impact the retail and travel sectors, the co-branded credit card market in the U.S. has seen significant changes, with issuers adapting to the new landscape and consumers shifting their spending habits. The "Co-Branded Credit Cards in the U.S., 8th Edition" report by ResearchAndMarkets.com provides an in-depth analysis of the market, covering credit card program features and benefits, marketing and loyalty program strategies, and growth trends.

Key Takeaways:

  • The COVID-19 pandemic has accelerated digital and contactless trends in co-branded credit card usage, with 30% of consumers having at least one co-branded card.
  • The largest co-branded card programs in the U.S. are led by American Express, Capitol One, Chase, Citibank, and Synchrony Financial, with American Airlines, Delta Air Lines, and Hilton Worldwide being the leading airline and hotel partners.
  • Consumers are using co-branded cards for everyday purchases, with the most popular reward categories being cash back, travel, and shopping.
  • Issuers are focusing on combating credit card churn with strategies like digital commerce, contactless payments, and rewards programs tailored to individual consumer needs.
  • Consumer credit trends show a decrease in credit card debt and an increase in debit card use during the pandemic.
  • Largest co-branded credit card programs include Amazon/Prime, Costco, Target, and Walmart, with Amazon Prime Credit Cards being a leading example.

Statistics:

  • 30% of consumers have at least one co-branded card (Source: ResearchAndMarkets.com)
  • Co-branded card usage/monthly usage and cardholder demographics in comparison to major credit cards and to store cards overall show a shift towards digital and contactless transactions (Sources: ResearchAndMarkets.com)
  • The leading co-branded issuers are American Express, Capitol One, Chase, Citibank, and Synchrony Financial, with American Airlines, Delta Air Lines, and Hilton Worldwide being the leading airline and hotel partners (Source: ResearchAndMarkets.com)
  • The number of co-branded credit card programs increased by 20% in 2020 compared to the previous year (Source: ResearchAndMarkets.com)

Sources:

  • ResearchAndMarkets.com, "Co-Branded Credit Cards in the U.S., 8th Edition"
  • BusinessWire, "ResearchAndMarkets.com Adds Report: 'Co-Branded Credit Cards in the U.S., 8th Edition'" (August 5, 2021)

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