Credit Card Users Increased 7% Since 2015

Press Release
Jan 22, 2020

Rockville (MD), January 22, 2020  — The percentage of credit card users in the U.S. has risen more than 7% from 2015 to 2019, according to Private Label Credit Cards in the U.S., 11th Edition, a report by market research firm Packaged Facts.

The uptick in credit card use underscores two important trends:

  • steady economic growth and an increasingly healthy job market have helped to provide a widening pool of credit-worthy credit card customers
  • ecommerce plays an increasingly important role in consumer purchasing, where payment cards are front and center and cash and check are afterthoughts at best

Things get interesting when examining credit card usage further. Packaged Facts found that trends by card type diverged: the percentage of adults having general-purpose credit cards increased well above the flat growth notched by store credit cards. This suggests that, after several years of growth, private label cards may be challenged to increase their audience.

In the report, Packaged Facts estimates that private label credit card purchase value grew at an average annual rate of 2.7% from 2016 to 2018, reaching $210 billion. Synchrony Financial contributed 49% of this amount, followed by Citi Retail Services with 23%. Private label credit card loan receivables reached an estimated $157.4 billion in 2018, up an average of 5.9% annually from 2016. Synchrony Financial’s private label credit cards again contributed 49% of this 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 increasing credit risk. But the greatest threat to private label credit cards may be co-branded credit cards. In the meantime, the industry continues to aggressively pivot to technology, honing data analytics capabilities to target client customers more precisely and effectively in the effort to turn that targeting into consumer purchasing behavior.

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

About the Report

Private Label Credit Cards in the U.S., 11th Edition, provides a wealth of insight on this growing market, with an emphasis on program features and benefits analysis, loyalty program integration, program- and issuer-specific market sizing, and digital applications. The analysis in the report:

  • Provides loans outstanding and purchase value estimates for the U.S. private label credit card market by issuer for 2016-2018, and a loans outstanding and purchase value forecast for 2019-2021, with forecast factors.
  • Presents additional assessment of more than 20 individual private label credit card programs, including loans outstanding and purchase value.
  • Assesses the industry shift to mobile and digital, including retailer mobile app usage and interest by feature and how mobile increasing fits into the loyalty and card strategies of major retailers.
  • Assesses consumer usage and active usage 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 degree to which a variety of credit card credit card features and benefits would incentivize credit card users (private label and non-private label) users to sign up for a new private label credit card and would incentivize private label cardholders to them more often.
  • Assesses U.S. private label card programs operated by the industry’s leading financial institutions, including Alliance Data Systems, Citi Retail Services, Capital One, Synchrony Financial Services, TD Bank and Wells Fargo, including private label card purchase value and loans outstanding by retailer.
  • Trends general-purpose credit card and store card usage penetration, usage in past 30 days, and monthly usage frequency during 2011-2017.
  • Assesses the impact store cards have on the type of payment used at the point of sale, receptivity to promotional marketing and tendency to act on that marketing.

Media members please contact our Communications Manager Daniel Granderson at dgranderson@packagedfacts.com for a copy of the report summary. To purchase the report please contact Research Specialist Mark Hyer at mhyer@marketresearch.com or visit https://www.packagedfacts.com/Private-Label-Credit-Cards-Edition-12443463/.

About Packaged Facts

Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, and pet products and services. Packaged Facts also offers a full range of custom research services. Reports can be purchased at our company website and are also available through MarketResearch.com.

For more essential insights from Packaged Facts be sure to follow us on Twitter (@packaged_facts), LinkedIn, and YouTube.

 

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