Co-branded credit cards have become a powerful tool in the financial and retail industries, offering a blend of targeted rewards, brand loyalty incentives, and exclusive perks that appeal to a broad range of consumers. These cards, created through partnerships between financial institutions and retail, travel, or lifestyle brands, attract applicants by aligning their benefits with specific consumer interests. What attracts applicants to co-branded cards?
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Data for today’s episode is provided by Javelin Strategy & Research’s Report: Co-Branded Credit Cards 2024:Top Issuer Market Review
Top 4 Most Important Factors for Co-Branded Card Applicants
- 73% – An attractive points/rewards program
- 72% – No annual fee
- 66% – The card had strong fraud protection features
- 60% – Low APR (interest rate)
Source: Javelin Strategy & Research, North American PaymentsInsights, 2023
About Report
Co-branded credit cards represent a significant and growing share of the U.S. consumer credit market, highlighting their importance to both consumers and businesses. These cards are key tools for fostering stronger connections between customers and partner merchants, offering tailored benefits and rewards that drive engagement. Research into the portfolios of 12 major issuers reveals that co-branded cards account for an impressive 62% of consumer credit card offerings, underscoring their strategic appeal to both issuers and merchants, while enticing consumers with attractive reward structures.
This Javelin Strategy & Research report provides an in-depth exploration of this dynamic market segment. It delves into the mutual advantages for issuers and merchants, analyzes market positioning strategies, identifies the consumer demographics most drawn to these programs, and examines the regulatory considerations shaping their development.
