DUBLIN, June 15, 2020 /PRNewswire/ -- The "Credit Card Rewards 2020: Another COVID-19 Victim?" report has been added to ResearchAndMarkets.com's offering.
Credit card reward programs, a consumer benefit of using a credit card, will undergo change as consumers and financial institutions adapt to the new world of COVID-19. Credit card issuers that rely on rewards to attract and retain customers must consider the changing economic realities and construct programs that do more than link to weakened co-brand partners.
While many consumers gravitate to cash-back rewards, co-brand programs that feature alliances with airlines, cruises, and hotels leave consumers with points that may not be useful for several years. Rewards with cash options, such as those issued by American Express, Bank of America, Capital One, Chase, Citi, and Discover will find consumers more likely to gravitate toward cash options than rewards that provide options for hospitality and travel.
This report analyzes consumer survey data on credit card rewards and applies a practical view of both the U.S. consumer and shortcomings in current reward programs. With more than 225 million credit cards targeted at hospitality, retail, and travel, card issuers need strategies that appeal to the new normal. Business is not business as usual today.
Highlights of the research report include:
- The vulnerability of annual fees
- Motivating spending when cardholders no longer buy
- Turbulence in the rewards ecosystem
- Reward innovation and the future of rewards
- Changes in issuers' reward strategies
Key Topics Covered:
1. Executive Summary
3. Cardholders: Things Were Going So Well
- Rewards Usage in 2019
- The Vulnerability of Annual Fees
4. The Disruptive Potential of Accelerated Attrition
- Motivating Spending Is Tough When Cardholders No Longer Buy
- Estimating High Risk for Attrition Accounts
5. Turbulence in the Rewards Ecosystem
- Multiple Factors in Play Over the Next Three Years
- Sponsor Brand Status
- Cardholder Behavior
- Changes to Issuer Rewards Strategy
6. Program Innovation and the Future of Credit Card Rewards
- Grocery Is the New Plastics
- The Big Winners May Be Cash-Back and Flex Rewards Programs
- And of Course, Online Retail
- American Express
- Bank of America
- Capital One
- TD Bank
- Whole Foods
For more information about this report visit https://www.researchandmarkets.com/r/a52j5h
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SOURCE Research and Markets