Private-Label Credit Cards Soar Past $130 Billion by 2010
The private-label credit card market
continues to soar. Touching $106 billion in receivables in 2005, the
market is projected to reach $131 billion by 2010, according Packaged
Facts.
Packaged Facts anticipates that the market will continue to grow steadily at a compound annual rate of 4.4% over the next four years as branded cards—everything from gas and home-store cards to fashion and boutique cards—continue to find favor with consumers, even amid the glut of other payment options.
The appeal of
rewards, 0% financing, 10% off initial purchase, and similar
tried-and-true marketing efforts, has not worn off. Consumers in all age
brackets, from young adults to seniors, continue to avail themselves of
easy private-label credit options.
The three top private-label issuers—Citi Commerce Solutions, GE Money, and HSBC—dominate with a combined 81% market share.
