Private Label Credit Cards: US Market Trends, 14th Edition

Best Price Guarantee	Length	Publisher	Published Date	SKU
from $4,500	99 Pages	Packaged Facts	August, 2024	LA19095915

Best Price Guarantee
Price	from $4,500
Length	99 Pages
Publisher	Packaged Facts
Published Date	August, 2024
SKU	LA19095915

Private Label Credit Cards: US Market Trends, 14th Edition

The 14th Edition of the Packaged Facts report, Private Label Credit Cards, covers the market for private label credit cards (PLCCs), with an emphasis on card issuers, merchants, consumers and the competitive and economic challenges shaping the industry. The report provides a comprehensive assessment of private label credit card issuers and retailers and emerging trends, strategies and challenges facing each category of industry participants as well as emerging hybrid products such as healthcare PLCCs and PLCCs blended with BNPL financing. A review of retail credit card program features is provided discussing benefits, analysis and review of retail card strategies and trends for growth.

Specifics of the report include information on innovative strategies employed by large retailers to expand their market share, highlighting the importance of growth and innovation in the sector. It further outlines the future strategies of leading private label credit card issuers such as Bread Financial, Citi Retail Services, Capital One, Synchrony Financial Services, TD Bank, and Wells Fargo, indicating a forward-thinking approach in financial services. Additionally, the assessment identifies new opportunities in the private label credit card (PLCC) market, including those in the medical and fuel sectors, suggesting a diversification in the types of PLCCs available. A detailed analysis of seven private label credit card programs is conducted within the framework of the retailer's loyalty program, examining the results of programs from Best Buy, TJ Maxx, J.Crew, Kohl’s, Target, Amazon, and WEX. Lastly, the study evaluates consumer usage patterns of private label credit cards, segmented by retailer type, to understand which cards are most frequently used, providing insights into consumer preferences and behaviors.

Executive Summary
- Scope of Report
- Report Methodology
- Private Label Credit Card Overview
  - In Past Year, PLCCs Have Declined 6%
  - PLCCs Being Converted to Co-Branded Cards
  - Younger Consumers Not Using PLCCs
  - Where is the Industry Going?
    - Table Private Label Credit Card Forecast, 2024-2027 ($ billion)
Market Size and Growth
- Context for Market Performance
  - Table Annual Growth of Revolving and Non-revolving Credit, 2019-2023 ($ trillion)
- Sizing the Overall Payments Market
  - Table Share of Payment Instrument Use by Household Income, October 2023
  - More Consumers Use Card Payments Than Have a Bank Account
  - Consumers Feeling Financially Stressed Ignore at Least One Element of Finances
  - Optimizing Payment Choices
- US Private Label Credit Card Market Size
  - Outstandings of Largest PLCC Issuers
    - Table Outstandings, Private Label Credit Cards, Largest Issuers, 2021-2023 ($ billion)
    - Table Purchase Volume, Private Label Credit Cards, Largest Issuers, 2021-2023 ($ billion)
  - 100 Million Consumers Carry PLCCs
  - PLCCs are First Step in Building Credit
  - Consumers are Drawn to PLCCs for Rewards
    - Table Average PLCC Credit Balance by Generation, 2022-2023
  - PLCC Originations Declining
  - Younger Consumers Resist Appeal of PLCC
    - Table PLCC Ownership Between Millennial and Gen Z Consumers at the Ages of 22-24, 2013 and 2023
  - In Past Year, PLCCs Have Declined 6%
    - Table Consumer Interest in Applying for Store Credit Cards During the Holiday Season, 2018-2023
    - Table General Purpose Credit Card and PLCC Interest Rates, 2018-2023
  - CFBP Targeting Egregious Late Fees
- Drivers of Private Label Credit Card Performance
  - Growing the Market for Private Label Cards with New Products
  - The New PLCC Product: Fleet Cards
  - Fleet and Fuel Cards Become Platforms for Providers’ Growth
    - Table WEX Revolving Credit Fuel Cards, 2022-2023 ($ million)
- Abercrombie and Fitch Retains Customers Without a PLCC
  - Table Abercrombie & Fitch Net Sales by Brand, 2022-2023 ($ billion)
Profiles of Top Private Label Credit Card Issuers
- Synchrony Financial
  - Overview
    - Table Synchrony Financial Performance Metrics, 2019-2023 ($ billion and # million)
  - Synchrony Marketplace
  - Synchrony’s Income is Dependent on its Five Largest Programs
  - Wall Street is Assuaged by Long-term Contracts with Largest Partners
  - 2023 was a Strong Year for New Accounts and Account Renewals
  - Synchrony’s 2023 Account Wins and Renewals
    - Table Synchrony New and Renewed Partnerships, 2023
  - Dual Cards Offer Issuers the Pros of Both Co-Branded and PLCC
  - Synchrony’s Five Sales Platforms
  - Synchrony’s Sub-Category PLCCs are Customizable by Merchants
  - Cashing in on Pets Best
  - CareCredit Sales Grew 18.5% in 2023
  - Digital Platform Accounts for 30% of Synchrony’s Card Revenue
  - Synchrony Pay Later is its BNPL
    - Table Synchrony Loan Receivables by Product Type, 2021-2023 ($ billion)
    - Table Synchrony Financial, Receivables and Purchase Volume of PLCC, 2021-2023 ($ billion)
- Citi Retail Services
  - Overview
    - Table Citi Retail Services Purchase Volume and Receivables, 2021-2023 ($ billion)
  - Portfolio Acquisition and Expansion
- Capital One
  - Overview
  - Capital One Acquiring Discover
  - Capital One’s $265 Billion Community Benefit Plan
  - Capital One and Walmart
    - Table Capital One Credit Card and Private Label Outstandings and Purchase Volume, 2021-2023 ($ billions)
- Wells Fargo
  - Overview
    - Table Wells Fargo, All Credit Card Accounts, 2021-2023 ($ billion)
  - Simplifying Retailer Integration
    - Table Wells Fargo Private Label Credit Card Purchase Volume and Receivables, 2021-2023 ($ billion)
  - Charge-offs Within Expectations
- Bread Financial
  - Overview
    - Table Bread Financial Purchase Volume, Receivables and Interest and Fees, 2021-2023 ($ billion)
  - Bread Deposit Product Growth Needed to Lower Cost of Funds
    - Table Bread Financial Purchase Volume by Product, 2022-Q1 2024 ($ billion)
  - Bread’s Strategies to Offset Impact of CFPB’s Late Fee Actions
  - Standard Bread PLCC Interest Rates Now 36%
- TD Bank
  - Overview
  - TD Bank Entered US PLCC Market Through Portfolio Acquisitions
  - TD Bank Had a Full Plate of Challenges in 2023
  - TD Bank’s PLCC and Financing Options
    - Table TD Bank US PLCC, 2021-2023 ($ billion)
US Retailer PLCC Programs
- Best Buy
  - Overview
  - Best Buy Financing Available to Best Buy Cardholders
  - In Addition to Deferred Interest Financing, Best Buy Offers Reduced Interest Financing
  - Best Buy Electronics Sales Growing at Pre-Pandemic Rates
    - Table Best Buy Revenue, 2021-2023 ($ billion)
  - New Revenue Stream Harnessing Geek Squad Tech Skills for Healthcare Market
- TJ Maxx
  - Table Have/Used TJX Rewards Store Credit Card in Last 30 Days, 2024
- J.Crew
- Kohl’s
  - Overview
  - Kohl’s Card Penetration and Frequency of Use
    - Table Kohl’s Store Credit Card: Ownership and Frequency of Use in Last 30 Days, 2024
  - Managing-to-Cost has Led to Lower Staffing, Fewer “Deals” and an Unfocused Strategy
  - Baby R Us Next Attempt to Return to Profitability
  - Kohl’s PLCC
  - Kohl’s Rapidly Converting PLCC Cards to Co-branded Cards
    - Table Kohl’s Net Sales and Private Label Credit Card Revenue, 2020-2023 ($ billion)
  - Kohl’s and Sephora
  - Loyalty Built on Discounts and Frequent Communication
  - Rewards Program Drives Revenue
  - The Kohl’s App: Driving Sales Lift
- Target
  - Overview
    - Table Target Key Financial Metrics and PLCC Performance, 2020-2023 ($ billion)
  - Target Strategy
  - Converting its 165 Million Customer Visits to Loyalty Programs
    - Table Target Store Credit Card: Ownership and Frequency of Use in Last 30 Days, 2024
  - Rebranding All Loyalty Programs and Cards as “Circle”
  - Target Uses Its PLCC as its Foundational Relationship Platform
- Amazon
  - Overview
  - Amazon Secured Card
    - Table Amazon Store Card: Ownership and Frequency of Use in Last 30 Days, 2024
Ownership of PLCC and Major Credit & Debit Cards
- Overview
  - All Consumers
    - Table Ownership of Major Credit/Debit Card and PLCCs, All Consumers, 2021-2024
  - Ownership by Age Range
    - Table Ownership of Major Credit/Debit Card and PLCCs Among Adults 18-34 Years Old, 2021-2024
    - Table Ownership of Major Credit/Debit Card and PLCCs Among Adults 25-54 Years Old, 2021-2024
  - Ownership by Principal Shopper
    - Table Ownership of Major Credit/Debit Card and PLCCs Among Principal Shoppers, 2021-2024
  - Ownership by Gender
    - Table Ownership of Major Credit/Debit Card and PLCCs Among Men, 2021-2024
    - Table Ownership of Major Credit/Debit Card and PLCCs Among Women, 2021-2024