As total credit card open accounts are at record levels in the U.S., co-brand card and PLCC products will need to be more aggressive to win deals
While the COVID-19 pandemic has impacted credit card products in many ways, the current co-brand card and private-label credit card (PLCC) business model continues to evolve and pivot to remain relevant, provide value to all parties involved, and hold their ground as an essential part of the credit card ecosystem. But as merchants are becoming savvier and demanding more value from their co-brand card and PLCC relationships, new competition has entered the market that threatens the current co-brand card and PLCC business model.
In a new Impact Report, Co-Brand and Private Label Credit Cards: The Evolving World of Merchant Cards, research and advisory firm Aite-Novarica Group Report examines the U.S. Household credit card market, the brand and consumer benefits provided by co-brand and private label credit cards, as well as the recent competitive threats to these products.
“Although this is a complex market, co-brand card and PLCC products continue to expand as more merchants see all of the value offered by promoting a credit card with their brand on it,” said David Shipper, Strategic Advisor at Aite-Novarica Group and author of the new report. “Competition is high, especially for the most coveted brands. This means that all parties involved, including those that are new or attempting to enter this market, will need to be more aggressive and share more of the revenue to win deals.”
About Aite-Novarica Group:
Aite-Novarica Group is an advisory firm providing mission-critical insights on technology, regulations, strategy, and operations to hundreds of banks, insurers, payments providers, and investment firms—as well as the technology and service providers that support them. Comprising former senior technology, strategy, and operations executives as well as experienced researchers and consultants, our experts provide actionable advice to our client base, leveraging deep insights developed via our extensive network of clients and other industry contacts. Visit us on the web and connect with us on Twitter and LinkedIn.