Rewards Cards in the U.S., 3rd EditionDocument Transcript
Get more info on this report!Rewards Cards in the U.S., 3rd EditionSeptember 1, 20102010 brings a perfect storm to the credit card industry, driven by recession-inducedchanges that are reshaping its core. At the same time, card rewards have becomeubiquitous. In the face of some of the most significant changes the credit card industryhas ever faced, some argue that rewards programs are simply no longer feasible in anera of constrained revenue and profits. However, as detailed in Packaged Facts’Rewards Cards in the U.S., it is not a matter of eliminating reward programs, but ratherabout adapting them to some of the most significant changes the credit card industryhas ever faced.In its most consultative report in the series, this 3rd edition of Rewards Cards in theU.S. helps position industry participants to navigate this reengineering in card rewardsby assessing the following industry trends and challenges: How does continued migration to electronic payments shape the future of rewards? Which regulatory changes are most relevant to rewards? Understanding the macroeconomic and credit factors that shape the pool of current and future credit card customers. How large is this pool of customers? Does the current credit environment effect migration from credit to debit? Why? How? Which fee structures are being implemented—or could be implemented—to counteract regulatory change? How are card issuers’ credit card portfolios adapting to change? How can they share in tapping a smaller pool of cardholders while growing profits? What will happen to affluent, credit worthy cardholders? Less credit worthy cardholders? How do rewards play a role? Can rewards help grow transactions and help extend card reach beyond a shrinking consumer base? How does closed-loop versus open-loop competition and significant industry consolidation affect competition? What is the fate of co-brand rewards? Which reward types best fit the needs of specific consumers?
Over the course of the recession, which consumers are active card users? Multiple card users? Transactors? Revolvers? How has this changed over time?In addition to (or as part of) addressing these issues, this report trends consumer use ofcredit cards, analyzing usage patterns from 2007 to 2010, identifying specific consumergroups according to active card usage, cards in wallet, and classification as transactorsor revolvers. In doing so, Packaged Facts assesses some factors most integral to creditworthiness, including net worth, home value, and HH income.Rewards Cards in the U.S., 3rd Edition also contains: In-depth competitive profiles of the associations and major issuers written by industry experts Selected strategic card players assessments Comprehensive, holistic assessment of macroeconomic and credit trends Complete market size and forecastFor a full assessment on how regulatory changes is reshaping consumer banking—andreshaping consumer relationships, preferences, and attitudes about banking—pleasesee Packaged Facts’ upcoming Regulatory Change: Consumer Banking and the NewConsumer Relationship.Additional InformationMarket Insights: A Selection From The ReportConsumer Credit TrendsAs reflected in the Macroeconomic Influences, Regulations and the Rewards CardMarket chapter, consumers have a decidedly pessimistic economic outlook, as theystruggle under the burden of higher unemployment and lower household wealth. Butalong with that burden, they must also contend with an unfortunate—and related—chicken-and-egg phenomenon: their own reluctance to use credit and an unforgivingcredit environment. In this chapter, Packaged Facts assesses the direction of consumercredit and debt trends and their relationship to the credit card industry. As part of doingso, the chapter concludes with trended assessment of the “Big Six” credit card portfolios(Bank America, JPMorgan Chase, Capital One Financial, American Express, Citigroup,and Discover Financial Services).Debit Rewards
According to Packaged Facts’ Co-Brand and Affinity Credit Cards: The U.S. and GlobalMarkets and Opportunities, 3rd Edition (November 2009), debit cards continue toincrease in popularity, and while their growth rate has slowed, it has outstripped that ofcredit cards. Many of the same conveniences of credit cards can be found in debitcards. For example, as with credit cards, debit cards relieve consumers of the task ofhaving to withdraw cash from the bank. Debit cards also offer an added cash-relatedadvantage in that most larger merchants allow debit card users to withdraw cash fromtheir registers in limited amounts. In addition, debit cards are just as quick as creditcards, permitting consumers to make purchases with a swipe and a signature orpunched-in PIN. Importantly for consumers struggling with debt and bad credit, it’s alsomuch easier to obtain a debit card than a credit card. For many consumers, debit cardsare also budgeting tools. Since debit cards draw on funds that account holders alreadyhave, undisciplined...Card metricsJPMorgan Chase analyzes its credit card portfolio on a managed basis, which includescredit card receivables on the Consolidated Balance Sheets and those receivables soldto investors through securitizations. Below, Packaged Facts breaks out card receivablesand delinquency rates in three ways: for Card Services, for Card Services minus theWashington Mutual portfolio, and for the Washington Mutual portfolio. In aggregate,JPMorgan Chase attributed these increases to the current weak economic environment,especially in metropolitan statistical areas (“MSAs”) experiencing the greatest housingprice depreciation and highest unemployment and to the credit performance of loansacquired in the Washington Mutual transaction.In The NewsReward Programs Remain Integral to Success of a U.S. Credit Card Market in FluxNew York, August 16, 2010 — While the credit card industry has suffered fromsignificant account attrition and in some cases decreased spend per card since therecession, rewards programs continue to be integral to the market’s success, accordingto Rewards Cards in the U.S., 3rd Edition by market research publisher PackagedFacts. Rewards remain a cornerstone of American Express and Discover, while amongsome of the biggest card issuers in the country, Visa- and MasterCard-branded rewardsprograms are either being refreshed or are being brought to market for the first time.“The recession has brought tremendous upheaval to the industry, which has workedaggressively to counteract the financial consequences of the Credit CARD Act and theclose of an era where loose credit was the norm,” says Don Montuori, publisher ofPackaged Facts. “We don’t believe the trend toward significant account attrition hasplayed itself out yet. But we ultimately predict that though the number of credit cards inforce will continue to decline into 2011, rewards will selectively play a more importantrole than ever before.”
The degree to which cardholders are rewarded is an important issue facing theindustry. The answer will be driven more and more precisely and selectively by thereturn that cardholders generate for card players based on how much cardholdersspend, where they use their cards, and whether they are willing to pay for betterrewards. It’s a quandary that is already being addressed by the marketplace, but willalso continue to shape the industry in the future as reward programs become lessegalitarian with larger returns in percentage terms dictated by cardholder behavior. The“losers” in the rewards game will be lower spending and higher risk cardholders, whomthe market has already deemed marginal returns on investment, comments Montuori.One countermeasure to the recession has been a move “upstream” by positioningrewards-driven programs to more affluent, more creditworthy customers who promisereturns in the form of increased transactions per card and increased usage at points ofsale where cash and checks still hold sway. Based on such efforts, Packaged Factsforecasts the percentage of rewards-based credit cards will grow incrementally from76% of all general-purpose credit cards in 2009 to 77% in 2010 before reaching 82% in2013.Though affluent consumers are perhaps the most obvious targets of the post-recessioncredit card industry, younger consumers who have jobs are also attractive prospects.Millennials are currently avid debit card users, but as they enter what historically arepeak credit-using years it’s unknown whether they will migrate to credit cards. As aresult, some credit card players are introducing products that provide a needed link toyounger debit-driven consumers and position their charge cards as debit alternatives.For instance, American Express recently introduced the ZYNC Card, which functions asa pay-in-full charge card that allows cardholders to select bundles of rewards andbenefits called “Packs” that are tailored to specific lifestyle interests and spending habitsin categories such as music, fashion, food, travel and more.Rewards Cards in the U.S., 3rd Edition examines the rewards-based credit cardindustry in the U.S. The report presents the size and growth of the market and severalrelated key metrics within the broader credit card arena, as well as trends and factorsaffecting the industry. In addition, major key competitors are profiled, along with afocused analysis of consumer demographics and preferences of co-branded creditcards. The scope of the report is limited to consumer-based general-purpose creditcards that have a rewards feature. However, debit card rewards, private label rewards,and business rewards are also discussed within the context of the reportAbout Packaged Facts - Packaged Facts, a division of MarketResearch.com,publishes market intelligence on a wide range of consumer market topics, includingconsumer goods and retailing, foods and beverages, demographics, pet products andservices, and financial products. Packaged Facts also offers a full range of customresearch services.
Table of ContentsChapter 1: Executive Summary Scope and Methodology Report Scope Report Methodology Macroeconomic Influence on the Credit Card Industry Consumer confidence helps put brakes on spending Unemployment picture stabilizes Housing and equities still down Consumer Credit Trends Chipping away at the debt burden But higher charge-off rates play a role The banks’ side of the argument: card lending policies tighten Unused credit lines pulled Eleven consecutive quarters of credit card tightening The result: Fewer prospects. Credit card interest rates increase while banks’ borrowing costs decrease Consumer Payment Trends: An Overview Rewards cards in the wallets of more than 75% of credit card users Cash still the most widely used payment instrument for retail paymentsRegulatory Analysis The CARD Act: Implementation and Response Regulation E Dodd-Frank Wall Street Reform and Consumer Protection Act Bureau of Consumer Financial Protection The Durbin AmendmentRewards Card Market Size and Forecast Rewards Cards to Continue to Build Credit Card Share Account attrition rampant; rewards no exception Moving upstream, rewards in tow A question of degree And a question of fitting into broader strategy Rewards card share to grow incrementally through 2013Rewards Trends, Innovations & Strategies A Tale of Two Groups: the Affluent and the Young Why target the affluent? Simple: big card spend; high FICOs MasterCard rolls out the red carpet American Express Spins Gold Chase asks customers to try Sapphire What about younger consumers?
Debit stalks credit Trends in Rewards Types Practicality of cash rewards drives increased consumer interest JPM Chase Brings Back 5% Cash Back—with caveats Private Label Cards: Retailers Taking a Second Look? Co-branding trend runs strong Small-Business Rewards Credit cards a fraction of small-business B2B transactions Debit Rewards Debit Rewards Gaining Traction Cash back debit cards on the riseRewards Profiles Bank of America Reward Cards Offerings 2010 Card Strategy Wells Fargo & Company Rewards Cards Capital One Financial Entrance into Reward Cards & Offerings Discover Financial Services Network and Card Initiatives Rewards Cards Rewards Snapshots: MasterCard and Visa Co-branding and Premier Rewards Relationship Rewards Construct Card counts drop precipitously Visa Visa’s Three-tiered Consumer Credit PlatformConsumer Credit Card Usage Trends Credit card use dips MasterCard credit card use drops the most and American Express the least American Express cardholders report highest level of engagement But cardholder engagement also drops over time Among full-time employed, credit card use is stable But engagement differentiates “Big “Four” And engagement trends suggest credit card pullback Swimming upstream: assessing higher-HH-income brackets MasterCard engagement highest among $150K+ HH income consumers Discover card engagement falls ten percentage points during 2007-2010 American Express Blue at 12.4 million mark Discover card accounts at about 31 million MasterCard Consumer Credit Card Use & Engagement Visa Consumer Credit Card Use & Engagement Co-Brand Usage Trends, Big Four
Chapter 2: Macroeconomic Influences, Regulations and the Rewards Card Market Consumer confidence helps put brakes on spending Current perceptions of business conditions, job prospects darken Expectations Index dips as job prospect optimism dims Unemployment picture stabilizes Figure 2-1: Unemployment Rate and Consumer Confidence, 2007-2010 Unemployment picture affects some more than others Unemployment rate among less educated jumps five percentage points Credit worthiness suffers Young adults in a bind Table 2-1: Unemployment Rate, Selected Demographics, 2007-2010 (%) Black and Hispanic consumers also more likely to be affected How can increasing personal savings and reducing the debt burden be bad? Unemployment and GPD forecast Slow employment rebound to coincide with a slow rebound in consumer spending Table 2-2: Unemployment and GDP Forecast, 2010-2012 Stock & housing declines deflate household wealth; rebound to record 2006 levels a long way off Q1 2009 to Q1 2010 sees uptick in household wealth, but still $10 trillion off 2006 high Table 2-3: Household Net Worth, 2005-2010 (in trillions of $) Case-Shiller and FOMC housing pessimism Table 2-4: Household owners equity in real estate as a percentage of households owner-occupied real estate, 2003-2010 (%) Q2 2010 summary equities analysis Figure 2-2: Wealth Effect: Wilshire 5000 and Case Shiller Index, 2007-2010Regulatory Analysis The CARD Act: Implementation and Response Card Act - Stage I - August 2009 Card Act - Stage II - February 2010 Card Act - Stage III - August 2010 Ramifications of the CARD Act Cost to banks in the billions Making up the difference Regulation E Dodd-Frank Wall Street Reform and Consumer Protection Act Bureau of Consumer Financial Protection The Durbin Amendment Fees Reasonable and proportionalMarket Size & Growth Rewards Cards to Continue to Build Credit Card Share
Account attrition rampant; rewards no exception Moving upstream, rewards in tow A question of degree And a question of fitting into broader strategy Rewards card share to grow incrementally through 2013 Table 2-5: Rewards Cards, Percentage Share of Credit Cards, 2005-2013 The Backdrop: Credit Card Market Size Table 2-6: Credit Card Accounts, Big Four, 2005-2009 Table 2-7: Credit Cards in Force, Big Four, 2005-2009 Table 2-8: Credit Card Payments Volume, Big Four, 2005-2009Chapter 3: Consumer Credit Trends Chipping away at the debt burden Consumer credit and home mortgage debt rates on the decline Figure 3-1: Consumer Debt Burden, 2000-2010 Debt service ratios peak at onset of 2008 and decline thereafter Figure 3-2: Savings Rate & Debt Service Ratio & Financial Obligations Ratio, 2007-2010 Revolving credit trends in focus Figure 3-3: Consumer Revolving and Non-Revolving Debt Trends, 2004-2010 But higher charge-off rates play a role Figure 3-4: Credit Card Charge-off Rates, Top 100 Banks, 2005-2010 The banks’ side of the argument: card lending policies tighten Unused credit lines pulled Eleven consecutive quarters of credit card tightening The result: Fewer prospects Figure 3-5: Credit Card Loan Tightening, Top 100 Banks, 2007-2010 Credit card interest rates increase while banks’ borrowing costs decrease Federal funds target rate at historical lows Profit margins breathe easier Figure 3-6: Consumer Auto, Personal and Credit Card Loan Interest Rates, 2004-2010 Card Portfolios Reflect Consumer & Issuer Behavior American Express charge-off trends reflect a more affluent, creditworthy consumer Figure 3-7: Charge-Off Rates, Big Six, Q1 2009-Q1 2010 Bank America credit card delinquency rates twice as high as AMEX rates Figure 3-8: Delinquency Rates, Big Six, Q1 2009-Q1 2010 Big Six Issuers: Loan Balances and Purchase Volume, Q1 2009-Q1 2010 Figure 3-9: Card Loan Balances, Big Six, Q1 2009-Q1 2010 Figure 3-10: Purchase Volume, Big Six, Q1 2009-Q1 2010Chapter 4: Consumer Payment Trends: An Overview Stronger Debit Growth Virtually Assured But that is not necessarily bad
Figure 4-1: Credit, Debit, Cash and Check Usage Trends, by Point of Sale, 2007- 2009 A Disenfranchised Lot Figure 4-2: Reported Changes to Card Terms & Conditions, 2009 A crisis in confidence Followed by direct action Card transactions 53% of all payment transactions Debit overtakes credit Rewards cards in the wallets of more than 75% of credit card users Table 4-1: Current Adoption of Payment Instruments, By Instrument Features, 2008 Table 4-2: Number of Adopted Bank Accounts and Payment Cards, 2008 Cash still the most widely used payment instrument for retail payments Table 4-3: Use of Payment Instruments in a Typical Month, by Type of Instrument, 2008 Share of cash and checks as a percentage of transactions to continue to drop Table 4-4: Actual and Expected Changes in Use of Payment Instruments, By Period of Change, 2008 (%) Credit cards still the domain of larger-ticket purchases Credit cards have an edge in gas and automotive expenses Figure 4-3: Comparison of Credit and Debit Card Usage, by Type of Purchase, 2009 I’ll switch, I’ll switch! For a lower rate—or better rewards Figure 4-4: Card-Switching Rationales, 2009 Cash back, please Figure 4-5 Reward Type Preferences, 2009 Credit card users who pay bills with their cards versus those who do not First Data: rewards memberships: credit cards decline; debit cards increaseChapter 5: Rewards Trends, Innovations & Strategies Credit cardholders spending less, weighing rewards Rewards still incent switchingA Tale of Two Groups: the Affluent and the Young Why target the affluent? Simple: big card spend; high FICOs Rewards in the acquisitions spotlight Rewards and FICO Tale of the tape Visa rolls out the red carpet American Express Spins Gold Chase asks customers to try Sapphire What about younger consumers? Debit stalks credit ZYNC—none too soon A bevy of packs; a bevy of choice
Trends in Rewards Types Practicality of cash rewards drives increased consumer interest JPM Chase Brings Back 5% Cash Back Caveats Travel rewards not dead Chase launches Continental Airlines OnePass Plus Card Benefits added to Continental Airlines Presidential Plus Card Cap One Introduces Simplified Venture Travel Rewards Card Travelocity Rewards American Express Card Airline Rewards worth a FightCo-brand Rewards Card Trends A question of scale, return on investment, and loyalty generation Not the end of co-brand, but the rationalization of co-brand Rationalization to benefit American Express American Express on the Move American Express Partners with Travelocity for Travel Rewards Card American Express Replaces Visa on Co-branded Macys Cards Chase and Starbucks Pull Plug on Duetto Citigroup drops Home Depot and has challenges with Zales Best Western International refreshes cobranded rewards cardPrivate Label Cards: Retailers Taking a Second Look? Co-branding trend runs strong Until Now: Target’s Flip-Flip Sends Industry a Message Test measured effect of rewards U.S. Bancorp Buys Kroger Card Portfolio Getting Merchants to Shoulder More of the Rewards Bill First Data is doing it Barclays is doing itSmall-Business Rewards Credit cards a fraction of small-business B2B transactions OPEN for competition Small business co-branding with Lowe’s But Competition Looms JPMorgan Chase salivates over small business market JP Morgan Chase InkDebit Rewards Debit Rewards Gaining Traction Debit Rewards—for a Fee Chase Unveils Disney Rewards Visa Debit Card with $25 Annual Fee
Joining a growing list of fee-based debit rewards cards But “free” is an option, too KeyBank offers free MasterCard contactless rewards debit card Cash back debit cards on the rise Cash back to incent debit trial Keep the Change! Way2Save! A regional twist: Commuter CashChapter 6: American Express: Rewards Anatomy and Strategy……… Value Proposition Table 6-1: 2008 Worldwide Cardholder Spend, American Express, Visa, & MasterCard Company overview Summary Introduction: Network and Card Initiatives Rewards Cards and Loyalty Programs Are the Name of the Game Response to Recession Response to Credit CARD Act Prospects American Express well-situated to take advantage of frugality trend Threats to Growth Reduction in discount revenue a foreboding possibility More partnership agreements & greater card acceptance needed What Differentiates American Express Now Makes It More of a Target No debit card? Regulatory change American Express Customer Patterns Shift to discretionary spend Shift toward everyday spending continues Charge Cards: Reemergence of a Mainstay Product Two Sides of the Demographic Coin: Premier Rewards Gold and ZYNC Card Table 6-2: Charge Card as Debit Card: Benefits of Charge Dont Take Chances, Take Charge Revolving Credit Cards In-House Proprietary Cards Perform—But Are They Being Left Behind? Significant share of billings, but scaling back Co-brand Cards: The Fight Is On U.S. Card Services: Co-Branded Cards Grow Sales Co-brand Contract Developments Co-brand Partnerships with Financial Services Institutions Airline strength also vulnerability Membership Rewards Program Underpins Charge, Proprietary and Co-Brand Cards Rewards: An Increasingly Expensive Proposition A double-sided dilemma Expenses already beginning to mount
American Express: Relationship of Discount Rate to Merchants, Issuers, and Acquirers How it works Leveraging its closed-loop network Whew: No Interchange Fee Sales and Card Growth Worldwide assessment Table 6-3: American Express Card Billed Business, Discount Revenue, Net Card Fees, 2007-Q2 2010 (in billions of $) Table 6-4: American Express Discount Rate, Card Spend, & Fee per Card, 2005- Q2 2010 Cardmember rewards expenses Table 6-5: American Express Rewards Expense and Liabilities, 2007-Q2 2010 Table 6-6: American Express, Credit Quality Metrics, 2006-2009 (in billions of $) U.S. growth trends Table 6-7: American Express U.S. Region Billed Business & Cards in Force, 2005-2009 U.S. Card Services Table 6-8: American Express, Quarterly Summary, Q2 2009-Q2 2010 Table 6-9: American Express, U.S. Card Services Segment, Selected Sales Metrics, 2006-2009 (in billions of $) Table 6-10: American Express, U.S. Card Services Segment, Card Billed Business, 2005-2009 Table 6-11: American Express, U.S. Card Services, Q2009-Q2 2010 Table 6-12: American Express, Global Network Services Segment, Billed Business & Cards in Force, 2007-Q2 2010 Q1 2010 Q2 2010 Q2 2010 rewards-related expenses skyrocketChapter 7: JP Morgan Chase: Rewards Anatomy & Strategy… Value Proposition Card Services: Summary Overview Response to Recession Identifying loss rate correlations Figure 7-1: JPMorgan Chase Card Services, Average Net Charge-off Unit Rate by External Card Debt, 2008-2009 Then act accordingly Table 7-1: JPMorgan Chase Card Services, Credit Line Decreases & Account Closures, by Cardholder Debt-to-Income Rate, 2008-2009 And moving forward, narrow the prospect pool Table 7-2: JPMorgan Chase Card Services, Credit Line Decreases & Account Closures, by Cardholder Debt-to-Income Rate, 2008-2009 Adjust intro rates, promo rates, and contract rates Table 7-3: JPMorgan Chase Card Services, Interest Rate Offerings Change, 2008-2009
A more sophisticated risk management strategy Response to CARD Act Prospects Credit card outstandings on track to shrink 15% in 2010 Threats to Growth Reduction in interchange revenue Regulatory change JPMorgan Chase Card Service Customer Patterns Sales among affluent customers strengthen most Bigger wallets; increased rate of spend Consumer confidence and sales volume not a coincidence? Shift to discretionary spend A more creditworthy cardholder base Figure 7-2: FICO Spreads, “Big Six” Issuers, Trust Receivables, 2009 Card Strategy: Build Brand, Rewards & Customer Relationship 2008 - 2009 - 2010 Card and Rewards Initiatives Ultimate Rewards, Blueprint, Sapphire, and Ink frame strategy “Rewards-engaged” customers outperform across all key metrics Table 7-4: JPMorgan Chase Card Services, Rewards-Engaged Metrics, 2009 Figure 7-3: JPMorgan Chase Card Services, Rewards Share of Outstandings, 2004-2009 Co-brand: Keep stronger hands and eliminate weaker ones Table 7-5: JPMorgan Chase Card Services, Co-brand and Affiliation Rationalization, 2008-2009 Leveraging branch presence & co-brand relationships in affluent markets JPMorgan Chase Card Services by the Numbers Card metrics All Chase Chase not Washington Mutual Washington Mutual Loan loss allowance increases Down, down, down: cards, transactions and volume Table 7-6: JPMorgan Chase Card Services, Financial and Business Metrics, 2007-2009 Table 7-7: JPMorgan Chase Card Services, Selected Balance Sheet Data, 2007- 2009 Lions and tigers and Washington Mutual, oh, my! Table 7-8: JPMorgan Chase Card Services, Washington Mutual Key Stats, 2007- 2009Chapter 8: Card Issuer and Association Analysis Bank of America Company Overview Credit Card Division (Global Cards Services) Reward Cards Offerings
Financial Objectives to Card IssuanceFinancial Results and Root CauseSomething Needs to Be DoneFuture of BAC’s Reward Card ProgramsCard Act ResponseCard Act and Rewards2010 Card StrategyAffinity programBank of America: Key MetricsTable 8-1: Bank of America, Credit Card—Domestic, Key Metrics, 2007-2009Wells Fargo & CompanyCompany overviewNetwork and Card InitiativesRewards CardsResponse to Credit CARD ActResponse to RecessionProspectsWells Fargo: Key MetricsTable 8-2: Wells Fargo, Key Credit Card Metrics, 2007-2009Capital One FinancialCompany OverviewHistory and developmentEntrance into Reward Cards & OfferingsFrom monoline to bankThe Great Recession’s impact on Capital OneFuture of Capital One’s Reward Card ProgramsSimplicity and transparencyCard Act ResponseCard Act and RewardsCapital One: Key MetricsTable 8-3: Capital One, Key Credit Card Metrics, 2007-2009Discover Financial ServicesCompany overviewNetwork and Card InitiativesRewards CardsTable 8-4: Discover, % Cashback Bonus per Dollars Spent, 2007-2009Response to Credit CARD ActResponse to RecessionProspectsTable 8-5: Discover, Key Credit Card Metrics, 2007-2009MasterCard..OverviewCo-branding and Premier RewardsRelationship Rewards ConstructMasterCard Marketplace open for businessMasterCard by the Numbers
Card counts drop precipitously 2008 declines intensify in 2009 Table 8-6: MasterCard U.S. Credit Card Metrics, 2005-2009 Visa Visa’s Three-tiered Consumer Credit Platform Visa by the Numbers Table 8-7: Visa U.S. Credit Card Metrics, 2005-2009Chapter 9: Consumer Credit Card Usage Trends A Preface to Survey Analysis: Debit Users, Transactors, and Revolvers Credit card use dips Some 3.1 fewer million consumers using credit cards in 2010 versus 2007 MasterCard credit card use drops the most and American Express the least Table 9-1: Credit Card Usage, by Credit Card Types, 2006-2010 Engaged cardholders are the prize American Express cardholders report highest level of engagement But cardholder engagement also drops over time Table 9-2: Credit Card Use & Engagement Ratio, by Big Four Issuers, 2006-2010 Full-time employed provide the take of the tape Among full-time employed, credit card use is stable But engagement differentiates “Big “Four” And engagement trends suggest credit card pullback Table 9-3: Credit Card Use & Engagement Ratio, Employed Cardholders, by Big Four Issuers, 2006-2010 Swimming upstream: assessing higher-HH-income brackets MasterCard engagement highest among $150K+ HH income consumers Table 9-4: Credit Card Use & Engagement Ratio, $75K-$99K HH Income, by Big Four Issuers, 2006-2010 Discover card engagement falls ten percentage points during 2007-2010 Table 9-5: Credit Card Use & Engagement Ratio, $100K-$149K HH Income, by Big Four Issuers, 2006-2010 American Express holds court over engaged, affluent cardholders Table 9-6: Credit Card Use & Engagement Ratio, $150K+ HH Income, by Big Four Issuers, 2006-2010 American Express Consumer Credit Card Use & Engagement Account growth during 2007-2010 American Express Blue at 12.4 million mark Table 9-7: Credit Card Use & Engagement, American Express Consumer Card Products, 2006-2010 Discover Consumer Credit Card Use & Engagement Table 9-8: Credit Card Use & Engagement, Discover, 2006-2010 MasterCard Consumer Credit Card Use & Engagement Table 9-9: Credit Card Use & Engagement, MasterCard Consumer Card Products, 2006-2010 Visa Consumer Credit Card Use & Engagement
Table 9-10: Credit Card Use & Engagement, Visa Consumer Card Products, 2006-2010 Co-Brand Usage Trends, Big Four Table 9-11: Airline/Hotel & Organization Co-Branded Credit Cards, by Big Four Issuers, 2006-2010 Table 9-12: Airline/Hotel & Organization Co-Branded Credit Cards, $100K-$149K HH Income, by Big Four Issuers, 2006-2010 Table 9-13: Airline/Hotel & Organization Co-Branded Credit Cards, $150K+ HH Income, by Big Four Issuers, 2006-2010Available immediately for Online Download athttp://www.marketresearch.com/product/display.asp?productid=2716351US: 800.298.5699UK +44.207.256.3920Intl: +1.240.747.3093Fax: 240.747.3004