Card Reward Program Services in the US - Market Research Report (2013-2028)
New York, United States
Last Updated: September 2023
NAICS OD5842Revenue
$836.9m
Past 5-Year Growth
Profit
$XXX.Xm
Employees
4,229
Businesses
114
Wages
$XXX.Xm
Card Reward Program Services in the US industry analysis
Macroeconomic improvements and greater acceptance of reward programs have driven growth for card reward program services. Over the past five years, consumers' willingness to accrue higher levels of debt led to increased demand for operators' complementary services. In addition, consumers have maintained a taste for rewards program services, while both national and local retailers have increased their card-linked marketing efforts. Nonetheless, robust economic volatility during COVID-19, coupled with rising interest rates, have harmed consumers' ability to manage large amounts of credit card debt, causing revenue to shrink at a CAGR of 0.3% to an estimated $836.9 million through the end of 2023, with an estimated 1.6% boost in 2023 alone. The push to hike interest rates accelerated credit card interest rates, which also negatively influenced operators' profit. In 2023, profit, measured as earnings before interest and taxes, is expected to account for 17.5% of revenue.Rising aggregate household debt levels have benefited operators. According to the Federal Reserve, aggregate household debt levels have increased from $13.9 trillion in 2017 to an estimated $15.8 trillion in 2023, as consumers have displayed confidence in their financials and have been willing to take on higher levels of debt amid macroeconomic growth. This trend was accelerated by high inflation, which exacerbated costs for consumers and forced many customers to purchase items via credit in an attempt to preserve their fiscal stability. Consumer spending has also grown at a CAGR of 2.5%. According to the latest data available from the Federal Reserve, domestic consumer credit and credit card balances have also increased.Over the next five years, revenue is expected to grow at a CAGR of 1.3% to an estimated $894.8 million. Continued improvements in key macroeconomic variables and acceptance among downstream markets are expected to contribute to this growth, especially as the economy rebounds from the pandemic and lingering inflationary challenges. Operators will contend with a massive level of competition, primarily from credit card issuers and banks that develop and maintain internal card reward programs. While credit card issuers have focused on wealthier consumers who tend to spend more on their cards, the anticipated saturation of this market is forecast to dampen revenue growth possibilities moving forward.
Trends and Insights
- Volatility across core economic sectors harms reward program usage. Consumers significantly cut back on traveling and larger discretionary spending in the wake of COVID-19 and high inflation, which dampened revenue growth.
- Popularity among consumers strengthens bank reward solution services. Since customers are heavy users of credit cards and continue to implement them in their daily shopping habits, operators can generate larger revenue via bank rewards credited directly to the credit card.
- Large metropolitan centers bolster establishment growth. Regions that house a considerable segment of the domestic population incentivize establishments to set up their services in the area.
- Offering favorable customer service enhances internal competition. Operators that are able to offer high-quality customer service will entice a larger customer base to sign up for their services.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 0.3 % over the past five years, to reach an estimated $836.9m in 2023.
Trends and Insights
Volatility during COVID-19 significantly dampened reward program demand
- Card reward program services are highly dependent on steady economic conditions and higher credit card usage among consumers to ensure program interest remains high.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Full economic recovery will bolster revenue growth
- The continuation of economic recovery following COVID-19, coupled with favorable developments in core macroeconomic variables, will benefit operators and ensure a steady growth stream in demand for card reward services.
Biggest companies in the Card Reward Program Services in the US
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Mastercard Incorporated | 196.0 | 102.0 | 52.0 | |
Cartera Commerce, Inc. | 24.5 | 12.8 | 52.0 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Bank reward solution services, Loyalty program services and Card reward program marketing services. Bank reward solution services is the largest segment of the Card Reward Program Services in the US.
Trends and Insights
Large prevalence among customers enhances popularity of bank reward solution services
- This product segment generates revenue via bank reward solution services, which enables operators to source different merchant offers and link them with bank debit and credit cards.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Commercial Banking in the US
- Savings Banks & Thrifts in the US
- Credit Card Issuing in the US
- Credit Card Processing & Money Transferring in the US
International industries
- Credit Card Issuance in Australia
- Credit Card Issuance in the UK
Table of Contents
About this industry
Industry definition
Card reward program services include operators that provide card-linked marketing programs and services to merchants, banks, card issuers and loyalty programs.
What's included in this industry?
Providing bank reward solution servicesProviding loyalty program servicesProviding card reward program marketing servicesProviding technical maintenance, consumer marketing and client servicesCompanies
Mastercard IncorporatedCartera Commerce, Inc.Purchase this report to view all 2 major companies in this industry.
Related Terms
LOYALTY PROGRAMCONSUMER DELEVERAGINGREVENUE RECOGNITIONIndustry Code
NAICS 52221 - Card Reward Program Services in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Volatility across core economic sectors harms reward program usage. Consumers significantly cut back on traveling and larger discretionary spending in the wake of COVID-19 an...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Popularity among consumers strengthens bank reward solution services. Since customers are heavy users of credit cards and continue to implement them in their daily shopping h...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Large metropolitan centers bolster establishment growth. Regions that house a considerable segment of the domestic population incentivize establishments to set up their servi...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each state in 2023
- Number and share of revenue each state accounts for in 2023
- Number and share of wages each state accounts for in 2023
- Number and share of employees in each state in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Offering favorable customer service enhances internal competition. Operators that are able to offer high-quality customer service will entice a larger customer base to sign u...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Dependence on strong capital availability boosts capital-rich companies. Card reward program services, particularly those offered to a larger customer base, require significa...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Mastercard Incorporated's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Cartera Commerce, Inc.'s performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Mastercard Incorporated, and factors influencing its performance in the industry
- Description and key data for Cartera Commerce, Inc., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Growth in corporate profit diversifies operators’ customer base. Since many businesses and corporate clients sign up for loyalty reward programs within the corporate sphere, ...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Sharp economic downturn harms profit. The effects of COVID-19 significantly shifted consumers’ spending patterns and dampened core revenue streams for operators.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Industry Multiples (2016-2021)
- Industry Tax Structure (2016-2021)
- Income Statement (2016-2021)
- Balance Sheet (2016-2021)
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Card Reward Program Services in the US industry in United States in 2024?
The market size of the Card Reward Program Services in the US industry in United States is $836.9m in 2024.
How many businesses are there in the Card Reward Program Services in the US industry in 2023?
There are 114 businesses in the Card Reward Program Services in the US industry in United States, which has grown at a CAGR of 0.9 % between 2018 and 2023.
Has the Card Reward Program Services in the US industry in United States grown or declined over the past 5 years?
The market size of the Card Reward Program Services in the US industry in United States has been declining at a CAGR of 0.3 % between 2018 and 2023.
What is the forecast growth of the Card Reward Program Services in the US industry in United States over the next 5 years?
Over the next five years, the Card Reward Program Services in the US industry in United States is expected to grow.
What are the biggest companies in the Card Reward Program Services in the US market in United States?
The biggest companies operating in the Card Reward Program Services market in United States are Mastercard Incorporated and Cartera Commerce, Inc.
What does the Card Reward Program Services in the US in United States include?
Providing bank reward solution services and Providing loyalty program services are part of the Card Reward Program Services in the US industry.
Which companies have the highest market share in the Card Reward Program Services in the US in United States?
The company holding the most market share in United States is Mastercard Incorporated.
How competitive is the Card Reward Program Services in the US industry in United States?
The level of competition is high and increasing in the Card Reward Program Services in the US industry in United States.
