Cashing in: Rising aggregate household debt will aid industry revenue growth

The Card Reward Program Services industry has performed well over the past five years, largely due to the mounting acceptance of rewards programs outweighing consumer deleveraging that stemmed from the global financial crisis. The accelerating consumer adoption of rewards cards and increased industry-relevant advertising expenditure have driven revenue for industry operators. However, there remains the potential for more strict regulations related to rewards cards, which could threaten the industry. Over the five years to 2022, aggregate household debt is anticipated to rise. This trend, coupled with the continued growth in the acceptance of reward programs among consumers, is forecast to drive demand for industry services...purchase to read more.

Industry Statistics & Market Size
Revenue
$457m
Annual Growth 12-17
1.7%
Forecast Growth 17-22
Profit
Employment
2,401
Businesses
88
Market Share of Companies

Industry Threats & Opportunities

  • Consumers’ willingness to accrue higher levels of debt led to increased industry demand
  • Currently, there is no federal regulation on the disclosure of credit card rewards
  • Continued acceptance of reward programs among consumers will drive industry demand
  • Industry Report - Industry Locations Chapter

    The Card Reward Program Services industry is primarily based in highly populated areas where businesses need help shaping reward programs that fit their customers' desires. The most populated region in the US is the Southeast with 25.7% of the population. Unsurprisingly, the Southeast is also home to 22.7% of industry establishments as well. The state with the largest share of industry establishments in the region is Florida, with 10.9% of industry establishments. That is the second most of any state in the country, and largely a result of Miami and other densely populated regions along the Florida coastline. The second most populated region in the country is the Mid-Atlantic, which is home to 21.3% of industry establishments, despite only 15.3% o...purchase to read more.

    Additional Insights for the Card Reward Program Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Card Reward Program Services Industry are

  • Ability to quickly adopt new technology
  • Access to niche markets
  • Experienced work force
  • IBISWorld analysts also discuss how external factors such as Aggregate household debt and External competition in the Card Reward Program Services industry impact industry performance..

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    What's in this report

    What is the Card Reward Program Services Industry?

    This industry includes operators that provide card-linked marketing programs and services to merchants, banks, card issuers and loyalty programs.

    Industry Products
  • Bank rewards solution services
  • Loyalty program services
  • Card reward program marketing services
  • Other services
  • Industry Activities
  • Providing bank reward solution services
  • Providing loyalty program services
  • Providing card reward program marketing services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Aggregate household debt
  • External competition
  • Households earning more than $100,000
  • Regulation

  • Current Performance
  • Credit card debt
  • Complex programs and focus on wealthier clients
  • Revenue recognition and industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • External competition and technological change
  • Target customer base and profitability
  • Table: Card Reward Program Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Card Reward Program Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumer Electronics Stores
  • International Airlines
  • Domestic Airlines
  • Commercial Banking
  • Savings Banks & Thrifts
  • Credit Card Issuing

  • Key Selling Industries
  • IT Consulting
  • Wired Telecommunications Carriers

  • Products & Services
  • Bank rewards solution services
  • Loyalty program services
  • Card reward program marketing services
  • Other services
  • Chart: Card Reward Program Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Travel
  • Consumer
  • Financials
  • Other
  • Chart: Major Market Segmentation for the Card Reward Program Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Card Reward Program Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Card Reward Program Services Industry

  • Industry Globalization
    Cartera Commerce Inc.,
  • Table: Cartera Commerce Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Card Reward Program Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Card Reward Program Services Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Aggregate household debt (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Consumer Deleveraging
  • An individual's attempt to decrease debt levels.
  • Loyalty Program
  • Marketing efforts that reward and encourage loyal consumer purchasing behavior.
  • Revenue Recognition
  • Determines the accounting period in which revenue is recognized. Under accrual accounting, revenue is recognized when earned and realized or realizable.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Card Reward Program Services is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Card Reward Program Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Card Reward Program Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Card Reward Program Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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