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:
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:
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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.
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