PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Barclays’ Credit Business Remains Strong, Despite Losing American Airlines

By Tom Nawrocki
December 5, 2024
in Analysts Coverage, Credit
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Jet Blue Goldman Sachs, tap to pay

Jet Blue to Goldman Sachs? Maybe NFL Next?

American Airlines’ decision to make Citigroup its exclusive credit card partner might be seen as a setback for the partner it’s dropping, Barclays. However, despite Barclays’ ambitions to grow its U.S. presence, the departure from American makes sense for several reasons.

The partnership between American and Barclays traces back to the airline’s 2013 takeover of US Airways, which had been using Barclays to handle its credit card business. Since then, Barclays has consistently played a secondary role to Citi, which has been allied with American for decades. 

For instance, when American renewed both partnerships in 2016, Citi was given the ability to market its cards through online channels, direct mail, and airport lounges. By contrast, Barclays’ marketing options were limited: its cards could only be promoted through in-flight soliciting and were forbidden from being advertised within 100 feet of an American Airlines airport lounge.

Barclays has been expanding in other ways. In October, it took over the General Motors card business from Goldman Sachs. Barclays CEO C.S. Venkatakrishnan has made U.S. credit card expansion a priority, with a focus on co-branded partnerships.

In 2022, Barclays replaced Synchrony as The Gap’s credit card partner, launching a suite of co-branded cards for the retailer and its affilaited brands, Banana Republic, Athleta, and Old Navy. This marked Barclays’ first standalone private-label credit card offering in the U.S. Additionally, Barclays has co-branding deals with JetBlue, Breeze Airways, and XBox.

“A Modest Hit”

American will not begin transitioning its Barclays cardholders to Citi until 2026. While the loss of American may be a mild setback, it’s unlikely to significantly impact Barclays’ overall strategy.

“Barclays will have its hands full integrating the GM card acquisition from Goldman Sachs,” said Brian Riley, Co-Head of Payments at Javelin Strategy & Research. “The loss of the American Airlines co-brand, which Citi has been the primary lender on for more than 40 years, is a modest hit. But if Barclays executes well on GM, there will be a minimal transaction impact.”

Airline credit cards are a cash cow for the industry and its partners. For the 12 months ending September 30, American reported earning $5.6 billion from its co-branded credit cards and other partnerships, with expectations for these payments to grow by 10% annually.

Similarly, Delta CEO Ed Bastian reported that the company generated $6.8 billion in 2023 from its co-branded card partnership with American Express. He noted that spending on Delta cards now accounts for 1% of total U.S. GDP, which would peg it at more than $200 billion annually.

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: American AirlinesBarclaysCitigroupCreditGMGoldman SachsSynchrony

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    crypto gateway

    Crypto Gateways Offer Access at an Inflection Point for Digital Assets

    March 11, 2026
    tokenization

    Tokenization: From Security Tool to Future-Ready Payments

    March 10, 2026
    SMB banks

    Despite Fintech Encroachment, Banks Can Remain the Go-To for SMBs

    March 9, 2026
    retirement investing

    Young Customers May Not Prioritize Retirement Investing, But Banks Should

    March 6, 2026
    payment fraud

    From Reaction to Prevention: Rethinking Payment Fraud

    March 5, 2026
    first-party-fraud

    Returns, Disputes, and the Rise of First-Party Fraud

    March 4, 2026
    commercial payments

    From Theory to Application: The Impending Transformation of Commercial Payments

    March 3, 2026
    Payments Modernization, ACH payments

    ACH and the Path Toward Future-Ready Payments

    March 2, 2026

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2026 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result