Building partnerships that work
Copyright 2018 Co-brand Solutions, LLC. All rights reserved.
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.