Table of Contents
Scope and Themes
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- What you need to know
- Scope of this report
- Consumer survey data
- Abbreviations and terms
- Terms:
Executive Summary
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- Industry highlights
- Changing landscape
- Card ownership and usage
- Attitudes towards cards, and benefits valued
Insights and Opportunities
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- Increase knowledge of premium card benefits
- Increase premium benefit usage and reap the rewards
- Luxury Whitespace
- Strength in premium card airline offerings
Fast Forward Trends
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- Trend 1: Universal Uncertainty
- The end of easy credit
- Specifics
- Implications
- Trend 2: The Rise of Behavioral Economics
- We don’t know what we don’t know
- Implications
Market Size and Forecast
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- Key points
- All electronic transactions
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- Figure 1: Number of electronic transactions in the U.S., 2003 and 2006
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- Figure 2: Dollar value of electronic transactions in the U.S., 2003 and 2006
- Purchase card transactions
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- Figure 3: U.S. credit and debit card purchase transaction volume, 2000-12
- Growth in credit card spending
- Premium cards as primary cards
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- Figure 4: Distribution of types of cards that are used as primary cards, August 2008
Competitive Context
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- Key points
- Rise of ultra premium cards
- American Express Centurion
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- Figure 5: American Express Centurion Card
- HSBC Premier
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- Figure 6: HSBC Premier Card
- Citi Chairman’s Card
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- Figure 7: Citi Chairman’s Card
- CitiGold
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- Figure 8: CitiGold Card
- Bank of America Accolades Card
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- Figure 9: Bank of America Accolades Card
- Coutts & Co. World Card
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- Figure 10: Coutts & Co. World Card
- Merrill+ Card
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- Figure 11: Merrill Lynch Merrill+ Card
Market Drivers
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- Key points
- Growth of the wealthy
- Impact of the U.S. economy
- Airline turmoil
- Tightening of lending practices
- Financial services industry losses increase pressure on credit card operations
Companies and Brands
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- Key points
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- Figure 12: Top credit card issuers ranked by “managed” loans basis, year end 2007
- Issuer snapshots
- Citigroup
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- Figure 13: Citigroup snapshot, 2008
- Bank of America
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- Figure 14: Bank of America snapshot, 2008
- JPMorgan Chase
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- Figure 15: JP Morgan Chase snapshot, 2008
- Capital One
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- Figure 16: Capital One snapshot, 2008
- HSBC
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- Figure 17: HSBC snapshot, 2008
- American Express
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- Figure 18: American Express snapshot, 2008
- Discover
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- Figure 19: Discover snapshot, 2008
- Wells Fargo
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- Figure 20: Wells Fargo snapshot, 2008
- Washington Mutual
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- Figure 21: Washington Mutual snapshot, 2008
- U.S. Bank
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- Figure 22: U.S. Bank snapshot, 2008
Innovation and Innovators
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- The Arriva Card’s Luxe Concierge
- American Express’s Delta Reserve Card
Advertising and Promotion
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- Figure 23: Notable premium credit card direct mail campaigns (based on mail volume), 2008
- Citi Diamond Preferred Card
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- Figure 24: Citibank direct mail advertisement, 2008
- Chase
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- Figure 25: Chase direct mail advertisement, 2008
- HSBC
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- Figure 26: HSBC direct mail advertisement, 2008
- Merrill Lynch
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- Figure 27: Merrill Lynch direct mail advertisement, 2008
- American Express
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- Figure 28: American Express direct mail advertisement, 2008
- American Express
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- Figure 29: American Express direct mail advertisement, 2008
- Television advertising
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- Figure 30: American Express Gold television advertisement, 2008
- Figure 31: American Express television advertisement, 2008
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- Figure 32: MasterCard television advertisement, 2008
- Figure 33: Visa television advertisement, 2008
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- Figure 34: Visa television advertisement, 2008
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The Consumer—Attitudes about Cards
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- Key points
- Distribution of consumers and card types
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- Figure 35: Distribution of consumer type and primary card type, August 2008
- Consumer attitudes and behavior by card type
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- Figure 36: Use of card for business vs household expenses, by primary card type, August 2008
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- Figure 37: Monthly spend on primary card, by primary card type, August 2008
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- Figure 38: Payment habit by primary card type, August 2008
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- Figure 39: Card network used as primary credit card, by primary card type, August 2008
- Online card activity
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- Figure 40: Online card activity by primary card type, August 2008
- Attitudes and perceptions of holders of their primary cards
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- Figure 41: Attitudes towards card by primary card type, August 2008
- Most valued features
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- Figure 42: Card programs and benefits valued by primary card type, August 2008
The Consumer—Benefits Awareness and Usage
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- Figure 43: Benefit usage by primary card type – travel insurance, August 2008
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- Figure 44: Benefit usage by primary card type – purchase insurance, August 2008
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- Figure 45: Benefit usage by primary card type – entertainment (access), August 2008
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- Figure 46: Benefit usage by primary card type – dining (access or information), August 2008
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- Figure 47: Benefit usage by primary card type – unique experience, August 2008
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- Figure 48: Benefit usage by primary card type – companion domestic ticket, August 2008
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- Figure 49: Benefit usage by primary card type – companion international ticket, August 2008
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- Figure 50: Benefit usage by primary card type – airline lounge access, August 2008
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- Figure 51: Benefit usage by primary card type – concierge service, August 2008
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- Figure 52: Benefit usage by primary card type – rewards program, August 2008
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Card Loyalty and Ownership
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- Figure 53: Motivation to switch cards by primary card type, August 2008
- Impact of the current economic environment
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- Figure 54: Impact of economy on card usage by primary card type, August 2008
- Card ownership by demographic groups
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- Figure 55: Primary card type by gender, August 2008
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- Figure 56: Primary card type by age groups, August 2008
- Figure 57: Primary card type by household income group, August 2008
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- Figure 58: Primary card type by race/Hispanic origin, August 2008
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The Consumer—Attitudes and Behaviors of Premium Card Holders
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- Key points
- Business and personal card usage
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- Figure 59: Use of primary, premium, card for business vs household expenses, by gender, August 2008
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- Figure 60: Use of primary, premium, card for business vs household expenses, by age, August 2008
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- Figure 61: Use of primary, premium, card for business vs household expenses, by household income, August 2008
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- Figure 62: Use of primary, premium, card for business vs household expenses, by race/Hispanic origin, August 2008
- Monthly spend
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- Figure 63: Monthly spend on primary, premium card, by gender, August 2008
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- Figure 64: Monthly spend on primary, premium card by household income, August 2008
- Payment activity
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- Figure 65: Payment habits for primary, premium card, by gender, August 2008
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- Figure 66: Payment habits for primary, premium card, by household income, August 2008
- Primary card used
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- Figure 67: primary, premium, card network used, by gender, August 2008
- Online card activity
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- Figure 68: Online card activity for primary, premium card, by gender, August 2008
- Impact of the economic environment on behavior of premium card users
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- Figure 69: Impact of economy on credit card usage, by gender, August 2008
Attitudes towards Fees and Services and use of Benefits
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- Key points
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- Figure 70: Attitudes towards primary, premium card by gender, August 2008
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- Figure 71: Attitudes towards primary, premium card, by household income, August 2008
- Benefits valued by premium cardholders
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- Figure 72: Primary, premium card programs and benefits valued, by gender, August 2008
- Benefit awareness and usage by primary/premium card—by benefit type and by gender
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- Figure 73: Benefit usage by primary, premium card and benefits used (travel insurance), by gender, August 2008
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- Figure 74: Benefit usage by primary, premium card and benefits used (purchase insurance), by gender, August 2008
- Figure 75: Benefit usage by primary, premium card and benefits used (entertainment access), by gender, August 2008
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- Figure 76: Benefit usage by primary, premium card and benefits used (dining access or information), by gender, August 2008
- Figure 77: Benefit usage by primary, premium card and benefits used (unique experience), by gender, August 2008
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- Figure 78: Benefit usage by primary, premium card and benefits used (companion domestic airline ticket), by gender, August 2008
- Figure 79: Benefit usage by primary, premium card and benefits used (companion international airline ticket), by gender, August 2008
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- Figure 80: Benefit usage by primary, premium card and benefits used (airline lounge access), by gender, August 2008
- Figure 81: Benefit usage by primary, premium card and benefits used (concierge service), by gender, August 2008
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- Figure 82: Benefit usage by primary, premium card and benefits used (rewards programs), by gender, August 2008
- Switching behavior
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- Figure 83: Motivation to switch primary, premium cards, by gender, August 2008
Cluster Analysis
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- Low spending, low payment, low onliners
- Knowledgeable, Internet-savvy, low balancers
- Disgruntled distrusters
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- Figure 84: Personal credit card owner clusters, September 2008
- Figure 85: If you have a credit card or charge card (not a debit card), which of the following best describes your primary credit card (the credit card the you use most often for purchases)? by personal credit card owner clusters, September 2008
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- Figure 86: In a typical month, about how much do you charge on your primary credit card? by personal credit card owner clusters, September 2008
- Figure 87: In a typical month, how would you say that you manage the payments for your primary credit card? by personal credit card owner clusters, September 2008
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- Figure 88: Which, if any, of the following customer service activities do you primarily conduct online? by personal credit card owner clusters, September 2008
- Figure 89: Please indicate whether you agree each of the following statements by personal credit card owner clusters, September 2008
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- Figure 90: Below is a list of common benefits associated with credit cards. Please indicate whether your primary credit card has these benefits and, if they are offered, how often you have used those benefits in the last year by personal credit card owner clusters, September 2008
- Figure 91: What would potentially cause you to switch primary credit cards? by personal credit card owner clusters, September 2008
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- Figure 92: Which of the following attributes do you feel describe your primary credit card? by personal credit card owner clusters, September 2008
- Figure 93: Due to the current economic environment, in what ways, has your credit card usage changed? by personal credit card owner clusters, September 2008
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- Figure 94: Personal credit card owner clusters by gender, September 2008
- Figure 95: Personal credit card owner clusters by age group, September 2008
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- Figure 96: Personal credit card owner clusters by income group, September 2008
- Figure 97: Personal credit card owner clusters by race, September 2008
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- Figure 98: Personal credit card owner clusters by Hispanic origin, September 2008
Appendix: Trade Associations
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