Mobile Retail Apps are Connecting with Private Label Credit Card Users

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Sep 14, 2017, 07:57 ET

ROCKVILLE, Md., Sept. 14, 2017 /PRNewswire/ -- The retail industry has shifted quickly to mobile, bringing the private label credit card market right along with it, according to market research firm Packaged Facts in the new report Private Label Credit Cards in the U.S., 10th Edition.

The fact is for more and more app users, the physical card that for so long embodied the face of this industry no longer exists. In its place stands the retailer app, capable of meeting shopping management, rewards, and general browsing needs, much like a physical location once did. Payments are increasingly part of the background, buried beneath rewards discounts and other promotional tools that may save customers money on a specific purchase but are also intended to reward increased spending and purchase frequency.

In addition, the app has become a private label credit card usage driver and retailer engagement engine. The app can function as an engagement driver among cardholders and non-cardholders alike, and can also help in the process of converting non-cardholders to cardholders.

"Today, retailer apps increasingly champion online engagement while promoting—and even rewarding—in-store engagement," says David Sprinkle, research director, Packaged Facts. "It's a potent mixture of mobile app technology, customer relationship management data analytics advances, geolocational marketing initiatives, and closed loop virtual card payments that is creating a retailer app landscape that increasingly delivers on simplicity, holistic engagement, and even fun in the pursuit of loyalty and increased sales."

Packaged Facts' proprietary national consumer survey data reveal that retailer-specific mobile apps have been downloaded by a majority (53%) of smartphone users, and 42% have used them in the past 30 days. Among private label credit card users, these rates are even higher—albeit slightly. Packaged Facts also found that almost half of active private label credit card users actively engage with retailer-specific apps.

In addition, age is a determining factor as Millennials between 18-34 years old are more than three times as likely as adults age 55 and over to have used a retailer-specific mobile app in the past 30 days. Among private label credit card users, the gap expands to 3.5 times. Further, some 71% of private label credit card users age 18-34 have used a retailer app in the past 30 days, a higher rate than among 18-34 smartphone users generally. This underscores the importance of these apps among younger card users.

About the Report

Private Label Credit Cards in the U.S., 10th Edition provides a wealth of insight on this growing financial services market. The report covers the U.S. market for private label credit cards, with an emphasis on retail credit card program features and benefits analysis, retail card strategies, growth trends and opportunity spotting. The report:

Gives loans outstanding and purchase value estimates for the U.S. private label credit card market by issuer for 2015 and 2016, and a loans outstanding and purchase value forecast for 2017-2019, with forecast factors.

Provides additional assessment of more than 20 individual private label credit card programs, including loans outstanding and purchase value.

Assesses the industry shift to mobile and digital, including retailer mobile app usage and interest by feature and how mobile increasing fits into the loyalty and card strategies of major retailers.

Quantifies consumer usage and active usage of private label credit cards segmented by retailer type, as well as monthly private label credit card spending and portion of balance paid.

Analyzes the degree to which a variety of credit card credit card features and benefits would incentivize credit card users (private label and non-private label) to sign up for a new private label credit card, and would incentivize private label cardholders to use them more often.

Assesses U.S. private label card programs operated by the industry's leading financial institutions, including Alliance Data Systems, Citi Retail Services, Capital One, Synchrony Financial Services, TD Bank and Wells Fargo, including private label card purchase value and loans outstanding by retailer.

Trends general-purpose credit card and store card usage penetration, usage in past 30 days, and monthly usage frequency during 2011-2017.

Assesses the impact store cards have on the type of payment used at the point of sale and receptivity to promotional marketing.

View additional information about Private Label Credit Cards in the U.S., 10th Edition, including purchase options, the abstract, table of contents, and related reports at Packaged Facts' website: https://www.packagedfacts.com/Consumer-Payments-Outlook-10827875/.

About Packaged Facts

Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, consumer packaged goods, and pet products and services. Packaged Facts also offers a full range of custom research services.

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SOURCE Packaged Facts