Research and Markets: Credit 2013: Consumers Eye Cobranded Rewards
DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/6dc8cx/credit_2013) has announced the addition of the "Credit 2013: Consumers Eye Cobranded Rewards" report to their offering.
New Survey Finds Consumers Consider Cobranded Cards To Offer More Valuable Rewards Than Bank-Issued Cards
Credit card reward participation in the United States declined from 76% in 2012 to 68% in 2013. Reward participation appears to be age dependant as 81% of seniors, 68% of 35-64 year olds, but only 57% of young adults participate in credit card reward programs, marking significant declines in participation among each age group during the past year.
This new report shows that some consumers who are offered retailer or other corporate-branded reward programs (e.g., airline branded) that compete with bank-issued reward programs, consider these rewards better than bank-issued rewards. Cobranded reward programs are luring consumers who may not have otherwise applied for a bank-issued credit cards.
This study examines the demographic shift and changing landscape of credit card use, use of co-branded credit or charge card programs by type, shift of credit card use to other payment types, consumer experience of changing fees, APRs, balances and comfort with borrowing on their credit cards, application channels used for general purpose credit cards and store credit cards and consumers frequency of noticing merchant rules for credit card use and expected reactions to each circumstance.
The report presents the findings from an online panel of 3,003 US adult consumers surveyed between May 28 and June 6, 2013.
Issuers must make their credit card rewards programs enticing to multiple consumer segments and easy to redeem at time of purchase in order to maintain consumer interest, states Karen Augustine, author of the report.
- Year-over-year trending of U.S credit cardholder penetration, cardholder behavior, and changes to features, credit limits, APR, applications, and turndowns
- Use of contactless cards, EMV chip cards, and cobranded credit cards by type
- Shifts in channels consumers used to apply for their most recent general purpose and store credit cards
- General purpose reward card participation, type of rewards available, most valuable reward type, and consumers' estimate of reward program value
- Consumer perception and expected reaction to merchant rules for credit card use
Key Topics Covered
Method and Respondent Profile
- Data Collection Approach
- Sample Profile
The 2012-2013 Consumer Environment
- Card Ownership
- Use of EMV Chip Cards and Contactless by Type
- Preferred Payment Method Online
- Changes in Credit Card Use
- Credit Card Rewards Programs: Participation and Value
- Changes in Cardholder Behavior
- Use of Cobranded Credit Cards: Commercial vs Nonprofit
- Consumer Perception of Merchant Rules for Credit Cards
Conclusions and Strategic Implications
Appendix: Credit Module from 2013 Survey Questionnaire
For more information visit http://www.researchandmarkets.com/research/6dc8cx/credit_2013
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