Private Label Credit Cards in the U.S.: PLCC Receivables Have Declined While Purchase Volume Has Grown Significantly - ResearchAndMarkets.com
The "Private Label Credit Cards in the U.S., 13th Edition" report has been added to ResearchAndMarkets.com's offering.
After experiencing declining transaction volumes in 2018-2020, the private label credit card market rebounded in 2021 and 2022. This growth trend is expected to continue through 2025, with nominal purchase volume and card outstandings projected to increase by 9.8% and 9.7%, respectively, during the period.
The report identifies six major private label credit card issuers: Synchrony Financial, Citibank's Citi Retail Services, Capital One, TD Bank, Bread Financial, and Wells Fargo. These issuers are forecasted to reach a purchase volume of $339.9 billion and card outstandings of $172.9 billion by 2025.
While Buy-Now, Pay-Later (BNPL) loans have impacted credit card purchase volume, the private label card industry continues to thrive due to customer loyalty and additional revenue associated with store credit cards. Private label card issuers and merchants have introduced new products, such as medical credit cards, and integrated private label BNPL and credit cards into their product offerings.
Medical credit cards, a niche segment, are offered by three private label credit card issuers: Synchrony, Bread Financial, and Wells Fargo. Synchrony's CareCredit Credit Card is the largest product in this market, with significant growth from 4.4 million cardholders and 177,000 providers in 2013 to 11.7 million cardholders and over 250,000 enrolled healthcare providers in 2023.
Despite these positive developments, the private label credit card industry faces challenges, including higher debt charge-off and delinquency rates, rising interest rates on unpaid balances, and potential caps on late fees, which could impact profitability.
The report also discusses the aggressive regulation of late fees by the Consumer Financial Protection Breau (CFPB), which could lead to the elimination of a significant portion of issuer income. While late fees are a major driver of profitability, credit card issuers are challenging the CFPB's proposed $8 late fee cap, citing its potential adverse effects.
Key Topics Covered:
CHAPTER 1: EXECUTIVE SUMMARY
CHAPTER 2: MARKET SIZE AND GROWTH
CHAPTER 3: PROFILES OF TOP PRIVATE LABEL CREDIT CARD ISSUERS
CHAPTER 4: PROFILES OF SELECTED PRIVATE LABEL CREDIT CARD AND LOYALTY PROGRAMS
CHAPTER 5: PRIVATE LABEL CARD USAGE TRENDS
For more information about this report visit https://www.researchandmarkets.com/r/d824c9
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.