[189 Pages Report] The Co-branded Credit Card Market size was estimated at USD 13.41 billion in 2023 and expected to reach USD 14.63 billion in 2024, at a CAGR 9.74% to reach USD 25.72 billion by 2030.
Co-branded credit cards include a store card and a rewards card, which is backed by a major network or a card issuer. Consumers use these credit cards where they are accepted while accessing significant merchandise perks, discounts, points, or other rewards. Airlines, hotels, eCommerce, and fuel companies are collaborating with banks to introduce co-branded cards to their customers for ease of payment. The rising adoption of credit cards by the young and millennial generation and the customers’ interest in attaining significant discounts and potential cash-back present the main driving factor for the market. However, limitations associated with the operations and working of co-branded credit cards and high annual fees restrain the market growth. The industry is currently focused on launching improved co-branded credit cards and is entering partnerships with retail and airline companies to expand the development of the co-branded credit card market.
In the Americas, particularly in the United States, the production and use of co-branded credit cards are highly developed, driven by a culture of credit reliance and robust rewards programs. Financial institutions and brands are collaborating to leverage extensive consumer data analytics to tailor offerings, making these cards popular across various sectors, including airlines, retail, and hospitality. The Asia-Pacific region exhibits varied adoption rates, with markets such as Australia and Japan witnessing significant uptake due to high consumer spending habits and an inclination for loyalty programs. Emerging markets within APAC are gradually embracing co-branded cards, facilitated by growing middle-class populations and digital banking advancements. In Europe, stringent regulatory frameworks for data protection and financial transactions, including the General Data Protection Regulation (GDPR), influence the structure and marketing of co-branded cards. Adoption in the Middle East is on the rise, driven by luxury travel and retail sectors, while Africa's focus remains on financial inclusion, with co-branded credit cards playing a minor role.
Co-branded credit cards involve partnerships between different types of vendors to create and offer the cards. The card issuer is usually a financial institution, such as a credit card company or a bank, responsible for issuing and managing co-branded credit cards, which handles the application process, credit underwriting, account management, and customer service related to co-branded credit cards. The card network is the payment processing network that facilitates the authorization, clearing, and settlement of transactions made with co-branded credit cards. Retailers play a significant role in co-branded credit card programs as they are co-branded partners and provide the brand affiliation and customer base the card issuer leverages. Retailers can be major chains, department stores, and online marketplaces.
Virtual co-branded credit cards are digital and virtual representations of credit cards that exist in a digital format. Virtual co-branded credit card programs provide convenience and security for online shopping and digital payments. They can be stored in mobile wallet applications and accessed through online banking platforms. Physical co-branded credit cards are traditional plastic cards issued to cardholders and carry the branding of the financial institution and the co-branded partner. Physical co-branded credit cards offer the familiar form factor of a traditional credit card, including the name of the cardholder, card number, expiration date, and security features.
Co-branded credit cards in the gaming industry are designed for avid gamers and gaming enthusiasts. The co-branded credit card offers rewards such as discounts on game purchases, exclusive in-game content, and access to gaming events and tournaments. Co-branded credit cards in the hospitality industry are commonly associated with hotel chains, resorts, and travel booking platforms. These cards offer hotel loyalty points, room upgrades, complimentary night stays, and exclusive discounts on hotel bookings. Co-branded credit cards in the petroleum industry are often issued in partnership with gas stations and oil companies. These cards provide rewards and discounts on fuel purchases, including cashback on gas spending and fuel points that can be redeemed for future fuel purchases. Co-branded credit cards in the retail industry are commonly associated with major retail chains, department stores, or online marketplaces. These cards offer rewards, discounts, and exclusive access to sales events at the partnering retailers. Co-branded credit cards in education are often offered in partnership with universities or educational institutions.
The market dynamics represent an ever-changing landscape of the Co-branded Credit Card Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.
The market disruption analysis delves into the core elements associated with market-influencing changes, including breakthrough technological advancements that introduce novel features, integration capabilities, regulatory shifts that could drive or restrain market growth, and the emergence of innovative market players challenging traditional paradigms. This analysis facilitates a competitive advantage by preparing players in the Co-branded Credit Card Market to pre-emptively adapt to these market-influencing changes, enhances risk management by early identification of threats, informs calculated investment decisions, and drives innovation toward areas with the highest demand in the Co-branded Credit Card Market.
The porter's five forces analysis offers a simple and powerful tool for understanding, identifying, and analyzing the position, situation, and power of the businesses in the Co-branded Credit Card Market. This model is helpful for companies to understand the strength of their current competitive position and the position they are considering repositioning into. With a clear understanding of where power lies, businesses can take advantage of a situation of strength, improve weaknesses, and avoid taking wrong steps. The tool identifies whether new products, services, or companies have the potential to be profitable. In addition, it can be very informative when used to understand the balance of power in exceptional use cases.
The value chain of the Co-branded Credit Card Market encompasses all intermediate value addition activities, including raw materials used, product inception, and final delivery, aiding in identifying competitive advantages and improvement areas. Critical path analysis of the <> market identifies task sequences crucial for timely project completion, aiding resource allocation and bottleneck identification. Value chain and critical path analysis methods optimize efficiency, improve quality, enhance competitiveness, and increase profitability. Value chain analysis targets production inefficiencies, and critical path analysis ensures project timeliness. These analyses facilitate businesses in making informed decisions, responding to market demands swiftly, and achieving sustainable growth by optimizing operations and maximizing resource utilization.
The pricing analysis comprehensively evaluates how a product or service is priced within the Co-branded Credit Card Market. This evaluation encompasses various factors that impact the price of a product, including production costs, competition, demand, customer value perception, and changing margins. An essential aspect of this analysis is understanding price elasticity, which measures how sensitive the market for a product is to its price change. It provides insight into competitive pricing strategies, enabling businesses to position their products advantageously in the Co-branded Credit Card Market.
The technology analysis involves evaluating the current and emerging technologies relevant to a specific industry or market. This analysis includes breakthrough trends across the value chain that directly define the future course of long-term profitability and overall advancement in the Co-branded Credit Card Market.
The patent analysis involves evaluating patent filing trends, assessing patent ownership, analyzing the legal status and compliance, and collecting competitive intelligence from patents within the Co-branded Credit Card Market and its parent industry. Analyzing the ownership of patents, assessing their legal status, and interpreting the patents to gather insights into competitors' technology strategies assist businesses in strategizing and optimizing product positioning and investment decisions.
The trade analysis of the Co-branded Credit Card Market explores the complex interplay of import and export activities, emphasizing the critical role played by key trading nations. This analysis identifies geographical discrepancies in trade flows, offering a deep insight into regional disparities to identify geographic areas suitable for market expansion. A detailed analysis of the regulatory landscape focuses on tariffs, taxes, and customs procedures that significantly determine international trade flows. This analysis is crucial for understanding the overarching legal framework that businesses must navigate.
The regulatory framework analysis for the Co-branded Credit Card Market is essential for ensuring legal compliance, managing risks, shaping business strategies, fostering innovation, protecting consumers, accessing markets, maintaining reputation, and managing stakeholder relations. Regulatory frameworks shape business strategies and expansion initiatives, guiding informed decision-making processes. Furthermore, this analysis uncovers avenues for innovation within existing regulations or by advocating for regulatory changes to foster innovation.
The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Co-branded Credit Card Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Co-branded Credit Card Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
SBI Cards and Payment Services Ltd Witnesses Share Uplift Following Launch of Titan Co-Branded Card
SBI Cards and Payment Services Ltd announced its strategic partnership with Titan Company to launch the Titan SBI Card, a new co-branded card designed to enhance customer experiences by amalgamating the financial expertise of SBI Cards with the consumer-centric ethos of Titan Company. This alliance is poised to leverage the strengths of both entities, offering innovative financial solutions to their customer base and potentially stimulating further growth in their respective markets. [Published On: 2024-03-21]
RAKBANK and Air Arabia Enhance Partnership Through Co-Branded Credit Initiative for Strategic Renewal
RAKBANK and Air Arabia have reaffirmed their collaboration by renewing their co-branded credit agreement, a ceremony held at Air Arabia’s headquarters. The deal aims to deliver a mutual commitment to providing enhanced travel experiences and tangible value to cardholders, illustrating the strong synergy between RAKBANK and Air Arabia in elevating customer service and reward mechanisms. [Published On: 2024-03-19]
Capital One Set to Acquire Discover in Landmark USD 35.3 Billion All-Stock Deal
Capital One Financial Corporation and Discover Financial Services entered a definitive agreement, in which Capital One is expected to acquire Discover for an all-stock value of USD 35.3 billion. Upon the transaction's closure, Capital One and Discover shareholders are poised to hold approximately 60% and 40% stakes in the new entity, respectively. This strategic merger promises to enhance value for shareholders and customers alike by leveraging the combined strengths of both companies. [Published On: 2024-02-20]
The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Co-branded Credit Card Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.
The report delves into recent significant developments in the Co-branded Credit Card Market, highlighting leading vendors and their innovative profiles. These include American Express Company, AU Small Finance Bank Limited, Axis Bank Limited, Bank of America Corporation, Barclays PLC, BNP Paribas Group, Capital One Financial Corporation, Cardless, Inc., CIMB Group Holdings Berhad, Citigroup Inc., Commercial International Bank (Egypt) S.A.E., Concerto Card Company, CTBC Bank (Philippines) Corp., Despegar.com, Corp., First Abu Dhabi Bank, FPL Technologies Pvt. Ltd., HDFC Bank Limited, ICICI Bank Limited, IDBI Bank Ltd., JPMorgan Chase & Co., Marqeta, Inc., Mastercard International Incorporated, National Payments Corporation of India, Saigon Thuong Tin Commercial Joint Stock Bank, Scotiabank, Shinhan Bank Co., Ltd., Standard Chartered PLC, Synchrony Bank, The Bank of Baroda Ltd., The Goldman Sachs Group, Inc., U.S. Bancorp, Uniorbit Technologies Private Limited, Visa Inc., and Wells Fargo & Company.
This research report categorizes the Co-branded Credit Card Market to forecast the revenues and analyze trends in each of the following sub-markets:
- Vendor Type
- Card Issuer
- Card Network
- Retailer
- Credit Card Type
- Physical Credit Cards
- Virtual Credit Cards
- End-User
- Education
- Gaming
- Hospitality
- Petroleum
- Retail
- Travel
- Region
- Americas
- Argentina
- Brazil
- Canada
- Mexico
- United States
- California
- Florida
- Georgia
- Illinois
- Kentucky
- Michigan
- Mississippi
- New Jersey
- New York
- Ohio
- Pennsylvania
- Texas
- Asia-Pacific
- Australia
- China
- India
- Indonesia
- Japan
- Malaysia
- Philippines
- Singapore
- South Korea
- Taiwan
- Thailand
- Vietnam
- Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom
- Americas
- Market Penetration: This section thoroughly overviews the current market landscape, incorporating detailed data from key industry players.
- Market Development: The report examines potential growth prospects in emerging markets and assesses expansion opportunities in mature segments.
- Market Diversification: This includes detailed information on recent product launches, untapped geographic regions, recent industry developments, and strategic investments.
- Competitive Assessment & Intelligence: An in-depth analysis of the competitive landscape is conducted, covering market share, strategic approaches, product range, certifications, regulatory approvals, patent analysis, technology developments, and advancements in the manufacturing capabilities of leading market players.
- Product Development & Innovation: This section offers insights into upcoming technologies, research and development efforts, and notable advancements in product innovation.
- What is the current market size and projected growth?
- Which products, segments, applications, and regions offer promising investment opportunities?
- What are the prevailing technology trends and regulatory frameworks?
- What is the market share and positioning of the leading vendors?
- What revenue sources and strategic opportunities do vendors in the market consider when deciding to enter or exit?
- Preface
- Research Methodology
- Executive Summary
- Market Overview
- Market Insights
- Co-branded Credit Card Market, by Vendor Type
- Co-branded Credit Card Market, by Credit Card Type
- Co-branded Credit Card Market, by End-User
- Americas Co-branded Credit Card Market
- Asia-Pacific Co-branded Credit Card Market
- Europe, Middle East & Africa Co-branded Credit Card Market
- Competitive Landscape
- Competitive Portfolio
- List of Figures [Total: 22]
- List of Tables [Total: 290]
- List of Companies Mentioned [Total: 34]
With a co-branded airline credit card, passengers can now receive bonus miles for every purchase, priority boarding, complimentary hotel stays, travel insurance, or free bag checks. Likewise, a co-branded retail card could provide additional discounts on store purchases, early access to sales, or cashback rewards. The businesses are staying attentive to retain their customers by delivering co-branded credit cards to build customer loyalty by providing them attractive incentives on purchase.
Beyond traditional rewards, some co-branded credit cards may offer exclusive experiences by giving access to presale tickets to concerts and events, restaurant discounts, or complete access to premium services, making cardholders feel valued members of a community.
Dedicated travelers, foodies, and shoppers are likely to benefit from the bespoke co-branded credit cards catering to their specific needs and interests. Companies can encapsulate a more relevant customer base by diversifying partner portfolios in the same or related sectors, which are projected to attract a more extensive customer base. In July 2023, Foodtech giant Swiggy launched a co-branded credit card by joining hands with HDFC Bank to lure customers and get the upper hand over its rival in the food service industry. By embracing digital technologies, co-branded credit cards can turn out to be a win-win for both consumers and brands by delivering an unmatched seamless credit consumption experience.
Here are five reasons why co-branded credit cards are gaining popularity and how they are offering significant discounts and cash-back potential to customers.
Increased discounts with a credit card: Co-branded credit cards offer multiple benefits to customers. One of the biggest advantages is the additional discounts that come along with using a credit card. Partnered with an exclusive brand, co-branded cards can offer unparalleled discounts on goods and services that you already pay for. The saved discounts can add up to a significant amount and are redeemable directly on purchases, which produces a more significant return.
Access to Exclusive Events: Co-branded credit cards can offer cardholders exclusive access to events such as concerts, food festivals, and fashion shows. One can expect to get front-row seats, meet-and-greet passes, and VIP treatment at events, those are just a few of the perks that come with a co-branded credit card.
Points and Rewards: Co-branded credit cards often come with points and reward systems that offer significant benefits to cardholders. Points and rewards are accumulated on purchases made with the card and are redeemable for exclusive deals, discounts, and cash-backs. These are especially high on co-branded cards since the card is tied to a specific company.
Annual fee waived: Many co-branded credit cards offer a limited annual fee waiver when the customer spends a certain amount of money on retail or other purchases. This means that customers can save a considerable amount by avoiding paying the annual fee and still get the benefits of a co-branded credit card.
Increased privacy and security: Co-branded credit cards can provide security features such as fraud protection and free credit reports. Physical security, such as contactless payments and secure passwords, is available to all cardholders. These features provide a higher level of privacy and security, making co-branded credit cards a popular choice.
Co-branded credit cards provide extensive benefits, especially when compared to other standard credit cards. Increased discounts, exclusive events, points and rewards, limited annual fees, and more privacy and security make these credit cards a popular choice among users. Co-branded credit cards are becoming increasingly popular in the credit card industry, and as consumers look for better value for their money, they are an attractive option.
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