Credit cards have become an essential financial tool for the modern generation. While applying for a credit card may seem daunting at first, it can offer several benefits such as ease of transactions, reward points, and cashback offers. However, it’s crucial those applying understand the terms and conditions associated with the usage of credit cards.
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Data for today’s episode is provided by Javelin Strategy & Research’s Report: Cobranded Credit Cards 2023
Those Who Have Applied for a Credit Card in the Past 12 Months by Generation
- 44% – Gen Y/Millenial
- 36% – Gen Z
- 29% – Gen X
- 16% – Baby Boomer
- 12% – Silent Generation
Gen Y/Millennials Were the Most Likely to Apply for a New Credit Card in 2022.
About Report
The cobranded credit card is a significant part of U.S. card portfolios at major issuers. Unlike the private-label card, the cobranded card operates on an open network allowing the cardholder to use the card outside of the merchant. These card products, which are generally aligned with travel or retail merchants, offer a way for issuers to acquire a large base of loyal customers who will generate interchange revenue. Our research shows that customers who will use rewards associated with cobrands tend to be from younger generations, which is an attractive segment for issuers looking to grow their card portfolios.
Cobranded card portfolios tend to be weighted heavily toward either the travel segment or the retail segment, with travel being the dominant segment for cobrands overall. With economic uncertainty and a potential recession looming, issuers that have generated a significant number of subprime accounts may face difficulties; however, we maintain that issuers will continue to do well overall. Cobranded cards will continue to be an important part of the market and should at least be on the radar of your organization, regardless of the size of your portfolio.
