Credit card users have grown 7% in past five years, reports packed facts

ROCKVILLE, Maryland., January 14, 2020 / PRNewswire / – The percentage of credit card users in the United States increased by more than 7% between 2015 and 2019, according to Private Label Credit Cards in the United States, 11th Edition, a report by market research firm Packaged Facts.

The rise in credit card use highlights two important trends:

  • Sustained economic growth and an increasingly healthy labor market have helped expand the pool of solvent credit card customers
  • E-commerce is playing an increasingly important role in consumer purchases, where payment cards are at the forefront and cash and checks are afterthought at best.

Things get interesting when we take a closer look at the use of credit cards. Packaged Facts found that the trends by card type diverged: The percentage of adults with general purpose credit cards rose well above the steady growth in store credit cards. This suggests that after several years of growth, private label cards can be challenged to grow their audience.

In the report, Packaged Facts estimates that the purchase value of private label credit cards increased at an average annual rate of 2.7% from 2016 to 2018, reaching 210 billion dollars. Synchrony Financial contributed 49% of this amount, followed by Citi Retail Services with 23%. Private label credit card loan receivables hit a record low $ 157.4 billion in 2018, up 5.9% per year on average from 2016. Private label credit cards from Synchrony Financial again contributed 49% of that amount, with Citi Retail Services contributing 23%.

Growth challenges in the private label credit card market include competition from installment loans and the threat of growing credit risk. But the biggest threat to private label credit cards may be co-branded credit cards. In the meantime, the industry continues to aggressively turn to technology, honing its data analytics capabilities to target customer customers more precisely and effectively with the goal of turning that targeting into the buying behavior of retailers. consumers.

For more information, purchase a copy of Private Label Credit Cards in the United States, 11th Edition of our website.

About the report

Private Label Credit Cards in the United States, 11th Edition, provides a wealth of information on this growing market, with a focus on program features and benefit analysis, loyalty program integration, program specific market sizing and transmitter and digital applications. The analysis in the report:

  • Provides estimates of outstanding loans and purchase value for the US private label credit card market by issuer for 2016-2018, along with a forecast of outstanding loans and value of purchase for 2019-2021, with forecast factors.
  • Features additional evaluation of over 20 private label credit card programs including outstanding loans and purchase value.
  • Assesses industry evolution to mobile and digital, including usage and interest of retailers’ mobile apps by functionality and how the increase in mobile fits into the loyalty and card strategies of major retailers .
  • Evaluates consumer and active use of private label credit cards segmented by retailer type, as well as monthly private label credit card spending and portion of balance paid.
  • Assesses the extent to which a variety of credit card features and benefits would entice credit card users (private label and non-private label) to sign up for a new private label credit card and incentive cardholders private to use them more often.
  • Evaluates private label card programs in the United States operated by leading industry financial institutions including Alliance Data Systems, Citi Retail Services, Capital One, Synchrony Financial Services, TD Bank and Wells Fargo, including purchase value private label cards and outstanding loans by the retailer.
  • General Purpose Credit Card and Bank Card Usage Penetration Trends, Usage in the Last 30 Days, and Monthly Usage Frequency for 2011-2017.
  • Evaluates the impact of bank cards on the type of payment used at the point of sale, receptivity to promotional marketing and the tendency to act on this marketing.

Members of the media, please contact our communications manager Daniel Grandson at [email protected] for a copy of the report summary. To purchase the report, please contact the research specialist Marc Hyer at [email protected] or visit https://www.packagedfacts.com/Private-Label-Credit-Cards-Edition-12443463/.

About the packed facts

Packaged Facts, a division of MarketResearch.com, publishes market information on a wide range of consumer market topics, including consumer demographics and information about buyers, consumer financial products and services. , consumer and retail goods, and pet products and services. Packaged Facts also offers a full range of personalized research services. Reports can be purchased from our company website and are also available on MarketResearch.com.

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