New market study, "The Future of Payment Card Loyalty", has been published

April 26, 2010 - PRLog -- The Future of Payment Card Loyalty analyses the history, current situation and future of the global payment card loyalty market. Utilising a mixture of propietary quanititative data and qualitative research, this report looks at how payment card loyalty programs work, their impact on card issuance, usage and revenue, and how key players are adapting to a dynamic and competitive environment.

Scope

* Analyses the current structure of payment card loyalty programs, their objectives, key players, historic development, and current threats.
* Includes detailed analyses of the material impact of loyalty programs on card issuance, transaction volumes and values, revolve rates and revenue.
* This report analyses four key strategies for issuers to effectively deal with the long term threats facing the sector, with international case studies.
* Primary interviews with key players provide perspective from issuer, payment scheme, retailer, and third party provider points of view.

Highlights

Payment card loyalty programs are an established feature of all markets globally. In each of these regions they continue to exist as either cash back, points based, or club model. They are an established and expected feature of the market and will not disappear anytime soon.

Payment card loyalty programs on average have a positive effect on card usage and revenues. This includes an average share of 55% of cards in issue, 60% of transaction volumes, 71% of transaction values, and 61% of balances outstanding.

Issuers and schemes have little choice but to adapt and evolve payment card loyalty programs due to economic and other pressures. These changes include a focus on specific consumer segments, greater focus on personalization, leveraging retail brands, and leveraging new technology.

Reasons to Purchase

* Understand what card loyalty programmes can do for your business by understanding what they are, and how they have developed.
* Plan effectively with concrete data providing solid understanding of what loyalty programs are capable of achieving.
* Find out how payment card loyalty programs can benefit your company with real world examples of key player strategies

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/58200_the_future_of_payment_ca...

Partial Table of Contents:

OvervieW 1
Catalyst 1
Summary 1
Methodology 1
Executive Summary 2
Card loyalty programs have four distinct forms 2
Card loyalty programs increase acquisition, retention and usage, and collect consumer data 2
Card loyalty schemes exist in only a select number of forms 2
Issuers, merchants and third party providers are the key stakeholders in loyalty programs 3
Card loyalty programs are constantly evolving and adapting to their environment 4
The traditional loyalty model is broken 5
Pressures on revenues put the economics of loyalty programs under threat 5
Well implemented card loyalty programs produce results 5
Rewards and benefits are found in every country 6
Consumers with rewards and benefits account for 60% of all transactions by volume 7
Cards with rewards also have higher transaction values 8
Cards with rewards tend to hold lower revolve rate 9
Cards with loyalty rewards typically hold higher balances 10
The breakdown of potential revenue by type of reward is inconsistent across regions 11
Payment card loyalty programs have no choice but to adapt to survive 13
Targeting a specific market is a long proven way to extend cardholder engagement 13
Personalization provides a mechanism to offer greater engagement with improved efficiency 13
Leveraging retail brands can allow issuers to tap into existing loyalty 14
Leveraging new technology allows issuers to provide new means of loyalty 14
Table of Contents 16
Table of figures 17
Table of tables 18
Card Loyalty Programs Have Four Distinct Forms 19
Card loyalty programs increase acquisition, retention and usage, and collect consumer data 19
Loyalty schemes act as catalysts to increase card acquisition 19
Loyalty schemes give consumers a reason to retain their cards 19
Loyalty schemes are frequently aimed at primarily at incentivizing card usage 20
Loyalty schemes provide a mechanism to collect complex data on each cardholder 21
Card loyalty schemes exist in only a select number of forms 22
Loyalty programs are based around cashback, points or club models 22
Cashback 23
Points based loyalty schemes 23
Club models 24
Issuers, merchants and third party providers are the key stakeholders in loyalty programs 24
Retail banks and mono-line card issuers form the basis of all payment card loyalty schemes 25
Retailers and merchants benefit from increased sales and consumer data 26
Third Party loyalty program providers manage schemes on behalf of others 26
Card loyalty programs are constantly evolving and adapting to their environment 26
Stage one: non-credit card loyalty schemes 27
Non-credit card loyalty schemes are common in many sectors at an early stage 28
Stage two: loyalty as a means of customer acquisition 28
Stage three: loyalty penetration declines as some issuers begin to withdraw their schemes 28
Stage four: move the program on or focus on price 29
Stage five: personalization and market stability 30
Personalization and targeting becomes critical in reaching skeptical consumers 31
The traditional loyalty model is broken 31
Pressures on revenues put the economics of loyalty programs under threat 31
Credit card issuers are facing a growing threat from the emergence of loyalty programs for debit cards 32

Full Table of Contents is available at:
-- http://www.fastmr.com/catalog/product.aspx?productid=5820...

About Datamonitor

The Datamonitor Group is a world-leading provider of premium global business information, delivering independent data, analysis and opinion across the Automotive, Consumer Markets, Energy & Utilities, Financial Services, Logistics & Express, Pharmaceutical & Healthcare, Retail, Technology and Telecoms industries. Datamonitor's market intelligence products and services ensure that you will achieve your desired commercial goals by giving you the insight you need to best respond to your competitive environment.  View more research from Datamonitor at http://www.fastmr.com/catalog/publishers.aspx?pubid=1002

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.