$836.9m
$XXX.Xm
4,229
114
$XXX.Xm
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.
Industry revenue has declined at a CAGR of 0.3 % over the past five years, to reach an estimated $836.9m in 2023.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2023 | Revenue ($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 |
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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.
Large prevalence among customers enhances popularity of bank reward solution services
Card reward program services include operators that provide card-linked marketing programs and services to merchants, banks, card issuers and loyalty programs.
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NAICS 52221 - Card Reward Program Services in the US
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
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...
Learn about an industry's products and services, markets and trends in international trade.
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...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Large metropolitan centers bolster establishment growth. Regions that house a considerable segment of the domestic population incentivize establishments to set up their servi...
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.
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...
Learn about the performance of the top companies in the industry.
Dependence on strong capital availability boosts capital-rich companies. Card reward program services, particularly those offered to a larger customer base, require significa...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Growth in corporate profit diversifies operators’ customer base. Since many businesses and corporate clients sign up for loyalty reward programs within the corporate sphere, ...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Sharp economic downturn harms profit. The effects of COVID-19 significantly shifted consumers’ spending patterns and dampened core revenue streams for operators.
Including values and annual change:
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Key data sources in the US include:
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The market size of the Card Reward Program Services in the US industry in United States is $836.9m in 2024.
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.
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.
Over the next five years, the Card Reward Program Services in the US industry in United States is expected to grow.
The biggest companies operating in the Card Reward Program Services market in United States are Mastercard Incorporated and Cartera Commerce, Inc.
Providing bank reward solution services and Providing loyalty program services are part of the Card Reward Program Services in the US industry.
The company holding the most market share in United States is Mastercard Incorporated.
The level of competition is high and increasing in the Card Reward Program Services in the US industry in United States.