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Proposed caps from both sides of the aisle have failed to gain traction鈥攖hey could restrict credit access and raise annual fees

The issuer will have to innovate its card offerings to contend with the UK鈥檚 lower interchange revenues

To overcome account opening headwinds, credit card marketers can explore credit card subscriptions, net worth data collection, and wallet-first cardholder experiences.

Despite intensified payment competition and rocky economic factors, private label credit cards will maintain their importance in the payments industry in 2023. Retailers should not discount the value they can bring in terms of revenues and loyalty.

The payments industry has used its marketing budgets to reap the rewards of a strong market for credit card acquisitions. But marketers will need to embrace doing more with less as credit conditions tighten and savings run dry.

Dollar store consumers, especially lower-income households, are facing financial difficulties, relying on credit cards to cover necessities. Retailers like Dollar General and Dollar Tree are focusing on pricing and promotions to keep customers shopping, but there has been a decline in discretionary spending from middle- and high-income consumers, who may be turning to mass retailers like Walmart.

Leading cash-back credit cards need to drive acquisition in an increasingly competitive segment of the card market. Our exclusive consumer survey data reveals which emerging features issuers should invest in to win over customers.

How their card programs are faring:. Capital One鈥檚 credit card purchase volume increased 5% YoY. Discover鈥檚 total network volume dropped 3% YoY. This was in part due to a 73% YoY drop in network partners volume, reflecting 鈥渢he anticipated exit of a partner,鈥� per Discover. Both issuers鈥� credit card delinquencies improved, but their charge-offs, which tend to lag delinquencies, rose.

Branded card spend increased 3% YoY, totaling $125.1 billion. Retail services credit card spend dropped 5% YoY. Citi鈥檚 net credit loss for US credit cards was 4.7%, up from 4.5% last year and 4.4% last quarter. Citi has a large co-brand and private label portfolio.

The platform can help the card program better compete with traditional cards from large issuers

They therefore may lean more on credit cards and credit alternatives like BNPL. BNPL providers can grow partnerships in these emergency categories to help meet consumer demand for credit and grow their payment volume. For example, Affirm partnered with Tekmetric in August, bringing its BNPL solution to auto repair businesses.

Unique and handmade often means small and even micro-business鈥攚hich are less likely to accept credit cards at all. Credit cards made up just 25% of all POS transactions globally in 2024, per Worldpay.

Issuers can capitalize on the 46% of users who proactively seek out deals with their cards

Gen Zers are driving growth in both emerging and traditional payment methods as they embrace cards, BNPL, and digital wallets. Payment providers must now align their offerings with Gen Z鈥檚 preferences as the cohort鈥檚 spending power grows.

To compete, fintech still must measure up against regulated and consumer-favorite card-linked installment plans.

Diving deeper: Debit card volume outpaced credit card volume for both networks. Visa鈥檚 debit volume grew 7% YoY, while credit volume increased 4%. Mastercard's debit and prepaid volume grew 10.6%, while credit and charge program volume grew 7.8%. The bigger picture: Despite a steady start to the year, growing economic uncertainty was top of mind for both networks.

The deal received conditional regulatory approval, shaking up the card space and larger financial service industry