Overview

Cashing in: After faring well during and after the recession, operators face stiff competition

The Card Reward Program Services industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

REPORT SNAPSHOT

Market Share of Companies
Industry Statistics & Market Size
Revenue
$618m
Annual Growth
11-16
4.5%
Annual Growth
16-21
Profit
Employment
2,350
Business
90

Industry Threats & Opportunities

  • Industry performance is being aided by a strong domestic consumer
  • Currently, there is no federal regulation on the disclosure of credit card rewards
  • Industry operators are anticipated to face higher capital expenditure costs in the years ahead

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    Industry Analysis & Industry Trends

    The Card Reward Program Services industry has performed well over the five-year period, 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. In the five years to 2021, 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...

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    Industry Report - Industry Products Chapter

    Bank reward solution services

    Bank reward solution services are expected to generate 35.5% of industry revenue in 2016. Industry operators source thousands of offers from merchants and link those offers to bank debit and credit cards. When consumers use their cards, they automatically receive rewards, which are credited directly to their cards. Large firms, such as Cartera, source offers from in-store, online and local merchants to give clients the largest possible variety of offers to meet consumer demand and drive card revenue. In return, clients pay industry firms a fee for their sourcing services. Due..

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    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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    Industry Products

    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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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

  • Products & Markets
    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
  • Banks
  • Credit card issuers
  • Merchants
  • Chart: Major Market Segmentation for the Card Reward Program Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    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
    Major Companies
    Cartera Commerce Inc.
  • Table: Cartera Commerce Inc. - financial performance

  • Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Card Reward Program Services Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Aggregate household debt (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    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.
  • Why buy this report?

    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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