Co-Branded Credit Cards in the U.S., 8th Edition

Table of Contents

Executive Summary

• Scope of Report
• Report Methodology
• Market Overview
  • Purchase Volume Trends for the Major Networks
    • Table: Purchase Volume for Mastercard, Visa and American Express, Quarterly, Q1 2020 - Q1 2021 ($billions)
  • Long-Term Payment Trends Accelerate
  • Credit Card Usage
    • Table: Share of U.S. Adults with Rewards Credit Cards: Overall and by Type of Reward, 2020 (percent)
  • Consumer Pay Down of Debt
    • Table: Revolving Credit - Change, Flow and Outstanding, 2016-Q1 2021
  • Credit Card Rewards Respond to Lower Transaction Volumes
  • Business Sectors Are at Different Stages of Recovery
  • Travel and Hospitality Industries Are Slower to Recover
  • Largest Co-branded Credit Card Programs
    • Table: Top Ten Co-branded Credit Card Programs by Purchase Volume, 2018-2020 ($billions)
  • Consumer Credit
• The Issuers
  • Industry Context
    • Table: Credit Card Receivables and Purchase Volume, Leading Issuers, Q4 2020 vs. Q4 2019 ($billions)
• Airline Partnerships
  • Industry Context
  • Airline Loyalty Programs
  • American Airlines' Program Valuation
  • Delta's Program Valuation
  • United Airlines' Program Valuation
• Hotel Partnerships
  • Industry Context
  • Co-branded Relationships
  • Hilton Revenues
  • InterContinental Hotels Group (IHG) Rewards Club
  • Marriott Bonvoy Loyalty Program
• Retailer Partnerships
  • Store Cards and Co-branded Cards
  • Amazon Prime Credit Cards
  • Costco Anywhere Visa
  • Target RedCard
• The Consumer
  • 30% Have Co-Branded Cards
  • Co-branded Card Patterns by Type of Affiliation
    • Table: Co-branded Credit Card Usage Rates by Selected Types: Have in Own Name vs. Used in Last 30 Days, 2021 (percent of adults)

Market Overview

• Scope of Report
  • Report Methodology
  • Purchase Volume Trends for the Major Networks
    • Table: Purchase Volume for Mastercard, Visa and American Express, Quarterly, Q1 2020 - Q1 2021 ($billions)
    • Table: Largest Credit Card Issuers by Receivables and Purchase Volume, 2020 ($billions)
  • Long-Term Payment Trends Accelerate
  • Credit Card Usage Trends
    • Table: Share of U.S. Adults with Rewards Credit Cards: Overall and by Type of Reward, 2020 (percent)
  • Consumer Pay Down of Debt
    • Table: Revolving Credit - Change, Flow and Outstanding, 2016-Q1 2021
  • Debit Card Use Increased During the Pandemic
  • Credit Card Rewards Respond to Lower Transaction Volumes
  • Issuer Strategies Combatting Credit Card Churn
  • Digital Commerce
  • Contactless Cards
  • Business Sectors Are at Different Stages of Recovery
  • Travel and Hospitality Industries Are Slower to Recover
    • Table: Number of Passengers Passing Through TSA Checkpoints on June 26th, 2019-2021
  • Largest Co-branded Credit Card Programs
    • Table: Top Ten Co-branded Credit Card Programs by Purchase Volume, 2018-2020 ($billions)
  • Consumer Credit
    • Table: Pandemic Unemployment Hit Leisure and Hospitality Industries Hardest

The Issuers

• Industry Context
  • COVID-19 Pandemic Effects
    • Table: Credit Card Receivables and Purchase Volume, Leading Issuers, Q4 2020 vs. Q4 2019 ($billions)
  • Note on Other Banks
• American Express
  • Overview
    • Table: American Express, Interest and Non-interest Revenue, Q1 2020- Q1 2021 ($billions)
  • Achieving Acceptance Parity with Visa and Mastercard
  • Small Business Saturday and Lower Merchant Discounts
• Capital One
  • Overview
  • Capital One Purchase and Receivables Volumes
    • Table: Co-branded Credit Card Purchase Volume and Receivables, Capital One, 2018-2020 ($billions)
  • Key Program Partner: Walmart
• JPMorgan Chase
  • Overview
    • Table: JP Morgan Chase: Co-branded Credit Card Purchase Value and Loan Receivables, 2018-2020 ($billions)
  • Snapshot of 2020 Consumer Lending
    • Table: JPMorgan Chase Income Statement, 2020 ($billions)
    • Table: JPMorgan Chase Credit Card Sales Volume and New Accounts, 2018- 2020
  • Chase Credit Card Income
    • Table: Components of JPMorgan Chase Credit Card Income, 2018- 2020 ($billions)
• Citibank
  • Overview
  • Citi Branded Cards
    • Table: Citi Branded Card Services Co-branded Credit Card Purchase Value and Loan Receivables, 2018-2020 ($billions)
• Synchrony Financial
  • Overview
    • Table: Key Synchrony Financial and Performance Metrics, 2019 and 2020 (in dollars)
    • Table: Synchrony Financial Co-branded Credit Card Purchase Value and Loan Receivables, 2018-2020 (in billions of dollars)

Airline Partnerships

• Industry Context
  • Largest U.S. Airlines
    • Table: Largest U.S. Airlines by Revenue, 2018-2020
  • Airline Net Income Plunged
  • Revenue Dropped $76 Billion at Five Largest U.S. Airlines in 2020
  • Global Aviation Industry Lost $370 Billion in 2020
  • Airline Loyalty Programs
  • After Cash, Travel Rewards Are the Most Popular Credit Card Reward
  • The Power of Co-branded Credit Cards to Drive Behavior
    • Table: Average Miles Earned by Airline Credit Card Adopters, 2016-2018
  • Profits from a "Free" Award Ticket
    • Table: Issuer Profits from Travel Award Ticket
  • How the Airlines Steer Redemption of Miles
  • U.S. Airlines Are Mileage Marketing Companies with Loyalty Flights
    • Table: Market Value of Largest U.S. Airline Frequent Flyer Programs ($billions)
• American Airlines
  • American Airlines' Program Valuation
  • Impact of COVID-10 on American
    • Table: American Airlines' Selected Operating Data, 2019-2020
  • Advantage Loyalty Program
  • Rewards Redemption
• Delta Air Lines
  • Delta's Program Valuation
  • Delta SkyMiles and Flyer Loyalty Are Cornerstone of Revenue
  • Delta Looking for 2021 Revenue
    • Table: Categories of Delta Air Lines' Operating Revenues, 2018-2020 ($billions)
• JetBlue Airways
  • Overview
  • Partnership with American Airlines
  • Enrolled vs. Elite Status
  • JetBlue's Barclay's Co-branded Credit Card
  • Goldman Sachs Vies for JetBlue's Co-branded Card Business
  • JetBlue Introduces Marcus Pay
  • Rewards are:
  • Benefits are:
• Southwest Airlines
  • Overview
  • Southwest and the Pandemic
  • Even Southwest Lost Money in 2020
    • Table: Categories of Southwest Airlines Net Income, 2018-2020 ($billions)
    • Table: Categories of Southwest Airlines Operating Revenues, 2018-2020 ($billions)
  • Southwest's Rapid Rewards
  • Rapid Rewards' Response to Pandemic
  • Rapids Rewards Pivots in June 2021
  • Chase Visa and Southwest
• United Airlines
  • United Airlines' Program Valuation
  • United Airlines' MileagePlus Program
  • United Introduces New Cards for Summer 2021

Hotel Partnerships

• Industry Context
  • Largest Group of Partnerships
  • Co-branded Relationships
• Hilton Worldwide
  • Overview
    • Table: Hilton's Balance Sheet, Reflecting Point Presale to American Express, 2020 ($millions)
  • Hilton's Response to Covid Pandemic
  • Hilton Honors Members Fill Rooms
  • How the Rewards Program Works for Hilton
  • Hilton Honors as an Engine of Revenue
  • Key Hilton Honors Members Benefits for Booking Directly
  • Enhancing Member Benefits
• InterContinental Hotels Group (IHG)
  • Overview
  • IHG's Priorities for Growth
  • Employees
  • IHG's Response to COVID-19
  • Pandemic Adjustments for Rewards Members
  • IHG Rewards
• Marriott International
  • Overview
  • Marriott's Response to COVID
  • COVID Drove Corporate Borrowing and Pre-Sale of Loyalty Points to Issuers
  • Sharp Rebound in Hotel Occupancy, But Still Far to Go
    • Table: Recovery in Marriott's Business and Group Travel Business
  • The Marriott Bonvoy Loyalty Program
  • Bonvoy Promotions
    • Table: Purchase Volume, Marriott Co-branded Credit Cards, 2018-2020 ($billions)

Retailer Partnerships

• Industry Context
  • Store Cards and Co-branded Cards
• Amazon
  • Overview
  • Amazon Membership Surge
  • Amazon and Prime Member Loyalty
  • Income and Net Income Defy Pandemic
    • Table: Consolidated Income Statement for Amazon, 2018-2020
  • Amazon Prime Credit Cards
    • Table: Co-branded Credit Card Purchasing Volume and Receivables, Amazon, 2018-2020 ($billions)
• Costco
  • Overview
  • Marketing Strategy
  • Loyal Shopping Members
  • Costco Anywhere Visa
• Target
  • Overview
  • Target Was Ready for 2020

The Consumer

• Co-branded Credit Cards in Context
  • Three-Fourths of Adults Have Credit Cards
    • Table: Major Credit Card Customer Base: Have in Own Name vs. Used in Last 30 Days, 2021 (percent and number of adults)
  • 30% Have Co-Branded Cards
    • Table: Customer Base for Co-Branded vs. Store-Only Credit Cards: Have in Own Name vs. Used in Last 30 Days, 2021 (percent and number of adults)
  • Co-Branded Cardholder Demographics
    • Table: Credit Card Usage Rates by Consumer Demographic: Major Credit Cards Overall, Store-Only Cards, and Co-Branded Cards, 2021 (percent of adults who are cardholders)
    • Table: Credit Card Customer Base by Consumer Demographic: Major Credit Cards Overall, Store-Only Cards, and Co-Branded Cards, 2021 (number of adults in thousands)
    • Table: Credit Card Usage Index by Consumer Demographic: Major Credit Cards Overall, Store-Only Cards, and Co-Branded Cards, 2021 (index with base = 100)
  • Co-branded Card Patterns by Type of Affiliation
    • Table: Co-branded Credit Card Usage Rates by Selected Types: Have in Own Name vs. Used in Last 30 Days, 2021 (percent of adults)
    • Table: Co-branded Credit Card Usage Rates by Selected Types: Have in Own Name vs. Used in Last 30 Days, 2021 (number of adults in thousands)
  • Co-branded Card Demographics by Type of Affiliation
    • Table: Co-branded Credit Card Usage Rates by Type and Consumer Demographic: Department Stores, Warehouse Clubs, Amazon/Prime, and Airline/Hotel, 2021 (percent of adults who are cardholders)
    • Table: Co-branded Credit Card Usage Rates by Type and Consumer Demographic: Department Stores, Warehouse Clubs, Amazon/Prime, and Airline/Hotel, 2021 (number of adults in thousands)
    • Table: Co-branded Credit Card Usage Rates by Type and Consumer Demographic: Department Stores, Warehouse Clubs, Amazon/Prime, and Airline/Hotel, 2021 (index with base = 100)
  • Motivators to Apply for Co-Branded Cards
    • Table: Card Features or Benefits That Would "Strongly Influence" Consumer Decisions to Apply for a Co-Branded Credit Card, 2021
    • Table: Influence on Use of Co-Branded Credit Cards: By Type of Benefit, 2021 (percent of cardholders)