Why a Co-brand ?

According to industry reports, co-brands:

Have a Higher Average Spend  - The average spend on a co-brand card is significantly greater than a non-rewards card.

Have Higher Growth Rates  - The spending on co-brand credit cards represents over one half of all credit card spend.  Consumers who have a co-brand card usually use it as their primary card. In fact, a recent study indicated that 53% of American credit card users had a co-branded card, and 64% of them used the card at least once per month.

Create More Loyal Customers  - Customers who have co-brand cards tend to be more loyal to  the sponsoring company and they tend to spend more with them. 

Represent a Potential New Revenue Stream - Typically  companies enter into a contract with a bank that will issue and market the co-brand card.  If the co-brand is viewed as strategic, there could be a separate contract with a network ( e.g. Visa, MasterCard, American Express and Discover) as well.  For prepaid co-brand programs, there are often other entities involved for the marketing and distribution of the cards.


If the contracts are structured properly, this could lead to substantial revenue streams.



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