Your customers all use them. So do you. Here’s four emerging trends with credit cards:
1. Mobile and Alternative Payments Are Reshaping the Consumer Experience. New innovative payment methods are quickly gaining popularity. With the rise of mobile devices, consumers are increasingly turning to mobile and alternative payment options. Cash, checks, and credit cards could eventually become relics of the past. POS mobile payments reached $35 billion in 2014, and strong growth is expected through 2017, according to the report Mobile and Alternative Payments in the U.S., Forth Edition.
2. The Small Business Card Market Is Positioned for Growth. The U.S. small business card purchase value is an estimated $505 billion, up 10.1 percent from 2013, according to Packaged Facts, a leading publisher of market research. The market for U.S. small business cards is expected to grow into 2016. Several factors contribute to the upswing, including increased industry innovation, employment growth, and favorable macroeconomic trends. For more information, see the Financial Services for Small Businesses in the U.S. Third Edition report.
3. Co-Branded Credit Cards Are Attracting Millennials. In an intensely competitive market environment, a variety of players are pursuing affluent consumers by offering co-branded credit cards with more rewards and deeper benefits. According to a 2015 report titled Co-Branded and Affinity Cards in the U.S. Fifth Edition, co-branded credit cards generated $809 billion in U.S. purchase value. Visa captured the greatest share at 47 percent, followed by MasterCard at 30 percent, and American Express at 23 percent. Co-branded cards are working to draw in more millennials, at a time when it is increasingly difficult for marketers to rely on brand loyalty.
4. Affluent U.S. Consumers Remain a Key Target Market. Because affluent consumers tend to use their credit cards frequently, spend large amounts of money, and pay on time, they are an important target market for credit card companies, particularly during turbulent economic times. Credit card companies market to luxury consumers by offering access, concierge services, security, and exclusivity. World Elite MasterCard, for example, entices affluent households with an on-call personal travel advisor, luxury benefits and amenities, and VIP promotions. Although emerging luxury markets are expanding rapidly in places like China, the U.S. luxury market remains the world’s largest. According to the Federal Reserve Bulletin, there are 11.53 million millionaire households in the United States.