The State of Consumer Credit Card Rewards 2015


Competition Among Credit Card Reward Programs Ramps Up

Mercator Advisory Group releases new research on the state of credit card rewards

Author: Ken Paterson
Published on: February 25, 2015

Credit card reward programs, long a staple of the credit card environment, are entering a new competitive phase as issuers attempt to grow share in the recovering economy. Cardholder participation in rewards programs is rebounding, and issuers are gradually increasing the earn rates and redemption options of their rewards programs.

Mercator Advisory Group’s latest research note, The State of Consumer Credit Card Rewards, 2015 updates competitive developments shaping the competitive market for consumer credit cards.

“The competition for high-spending, low-risk cardholders continues to escalate,” comments Ken Paterson, VP Research Operations, and Director, Credit Advisory Service at Mercator Advisory Group and the primary author of the research. ”Not only are rewards earned and redeemed by cardholders being ratcheted up, but major payments stakeholders are investing in new delivery technologies for future rewards programs. It is no stretch to say that rewards are the dominant marketing strategy for major credit card issuers.”

This research note contains 11 pages and 5 exhibits.

Companies mentioned in this report include: American Express, Bank of America, BarclayCard, Buzz Points, Capital One, Chase, Citibank, Discover Card, Dynamics, Inc., MasterCard, The Logic Group, Pinpoint Pty., Ltd., and Wells Fargo.

Members of Mercator Advisory Group’s Credit Advisory Service have access to these notes as well as the upcoming research for the year ahead, presentations, analyst access, and other membership benefits.

Highlights of the note include:

  • A review of the reward program structures of leading issuers
  • Data from Mercator Advisory Group’s 2014 CustomerMonitor Survey Series showing consumer participation in credit card rewards programs
  • Recent investments by major issuers and card networks in rewards platform infrastructure and delivery technologies
  • Regulatory concerns shaping rewards programs
  • A focus on cash-back rewards program strategies



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