Personal Credit Cards: Building Loyalty in a Changing Landscape

Americas and Asia Pacific set the pace for personal credit cards

The Americas and Asia Pacific are crucial players in personal credit cards. These regions represent an overwhelming majority of global transaction value, and are home to the majority of co-branded offerings.

Uneven global distribution of co-branded cards

Co-branded credit cards are disproportionately skewed toward a handful of markets. Only nine of the 46 researched markets featured at least 10 different merchants with co-branded personal credit cards, while just three countries featured more than 15 merchants with card offerings.

Unique card structures reflect market realities

Some markets feature uncommon account arrangements and cards tailored to unique financial environments. Examples include Sharia-compliant credit cards (to serve Muslim consumers adhering to the Islamic ban on interest), and dual card accounts (which can help overcome merchant acceptance barriers).

Interchange regulations may impact rewards

Interchange fee limits in some markets can put pressure on rewards programmes – a major feature in drawing consumers to credit cards.

Airlines and retailers lead co-branded offerings, while hotels lag

Airlines and retailers are the most likely merchants to carry co-branded credit cards. Large retailers such as Amazon, Carrefour and Walmart are present in a number of countries. Co-branded credit cards issued by hotel chains are uncommon. Only eight markets feature any hotel co-brand cards, typically only in the headquarters market of large multinational hotel chains.

Instalment options a popular incentive

Personal credit cards frequently feature instalment billing options which allow consumers to create fixed payments. Many cards offer interest-free instalment plans at participating partner merchants as an additional selling point.