Co-Brand and Private-Label Credit Cards: The Evolving World of Merchant Cards

Co-brand credit cards and PLCCs encourage increased consumer spending while providing benefits and rewards to most valued customers. Co-brand and private-label credit cards provide value to all parties involved. Issuers, card networks, and merchants all benefit from working together to issue credit cards. As merchants are becoming savvier and demanding more value from their co-brand card and PLCC relationships, new competition has entered the market that threatens the current co-brand card and PLCC business model.


This Impact Report examines the U.S. household credit card market, the brand and consumer benefits provided by co-brand and private-label credit cards, and the recent competitive threats to these products. Aite-Novarica Group interviewed executives at eight market players (including card issuers, card processors, card networks, and consultants). This 28-page report contains seven figures and three tables. Clients of Aite-Novarica Group’s Retail Banking & Payments service can download this report and the corresponding charts. This report mentions Alliance Data, Amazon, American Airlines, American Express, Bank of America, Barclays, Barnes & Nobles, Bass Pro Shops, Cabela’s, Capital Affinity Partners, Capital One, Chase, Citibank, Comenity Capital Bank, Costco, Discover, Equifax, FIS, Fiserv, FNBO, Goldman Sachs, Hilton, Kohl’s, Macy’s, Mastercard, PenFed, Synchrony, TD Bank USA, U.S. Bank, UMB, Visa, and Wells Fargo.

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