Consumer credit card rewards to exceed $108bn by 2026 as retailers leverage loyalty benefits: Juniper

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Consumer credit card rewards to exceed $108bn by 2026 as retailers leverage loyalty benefits: Juniper

The value of global consumer credit card rewards will surpass $108 billion by 2026, according to a new study by Juniper Research.

The new research, Digital Loyalty Programmes: Emerging Trends, Regional Analysis & Market Forecasts 2022‑2026, said this figure will jump from $92 billion in 2022. This 15 percent growth will be driven by an increase in the adoption of co-branded credit cards by retailers in order to boost repeat user engagement.

The report predicts that the global value of credit card rewards will increase, as consumers prefer their loyalty record in one place, instead of multiple apps or physical cards.

The research found that the value of consumer credit card rewards in China will grow by 18 percent between 2022 and 2026; as consumer awareness of loyalty programs rises in the digitally savvy Chinese population.

Recently, Ascenda and Visa entered into a partnership to roll out a customer loyalty solution for cross-border transactions in China, which the research predicts will fuel user engagement with loyalty programs and drive growth. Given its digital leadership, the research recommends China as a favourable market to offer coalition-based loyalty programs via credit cards.

The report found that the total value of personal credit card rewards will be triple that of corporate credit cards in 2026. While corporate cards are often used for travel purposes, this significantly reduced during the pandemic, with steady growth anticipated as the situation normalises.

The research identified personal credit card reward programmes as being high value due to the extremely competitive nature of the market, which has forced reward values upwards.

The research recommends that payment providers enter into strategic partnerships with specifically desirable retailers or brands to exploit the full potential of credit card reward schemes, or they will fall behind more appealing alternatives.

Read more from the report here.

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