Premium Credit Cards: How to Hit a Small, Moving Target

  • ID: 3675139
  • Report
  • Region: Global, United States
  • 27 Pages
  • Mercator Advisory Group
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Premium Credit Card Issuers Double Down on Pursuit of Affluent Consumers

FEATURED COMPANIES

  • American Express
  • Citibank
  • City National Bank
  • Discover
  • Facebook
  • JPMorgan Chase
  • MORE
Credit card issuers’ interest in mass affluent and high-net-worth cardholders has not waned in the wake of the recession. Indeed, leading premium card issuers have redoubled their efforts to acquire these consumers as a source of high-volume, low-risk credit card spend.

Premium Credit Cards: How to Hit a Small, Moving Target, updates key statistics on affluent and high-net-worth consumers. It analyzes statistics that are fundamental to card product development in the U.S. market such as market growth, product ownership, and monthly and yearly card spending by cardholder segment. The report also reviews recent developments in the major card networks’ product platforms and provides an update on new features and benefits of leading issuers’ super premium offerings.

"Growth in the overall number of high-net-worth and mass affluent households has remained modest," Director of Credit Advisory Service and author of the report. "The biggest area of growth, in terms of card spend, is occurring in the lowest tier of the mass affluent segment, and this is motivating issuers to invest in the features and rewards of cards targeted at that segment."

Highlights of the report include:

- Estimates, trends, and penetration rates in premium credit card spending
- Tactics that leading issuers have employed to differentiate premium card brands and products
- An overview of premium product platforms offered at the network level
- Comparison grids of the features/benefits of the most popular premium card offerings
- Strategic considerations for premium card issuers
Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • American Express
  • Citibank
  • City National Bank
  • Discover
  • Facebook
  • JPMorgan Chase
  • MORE
1. Executive Summary

2. The State of the Affluent Market
- Multiple Definitions, Multiple Segments
- Most Are Big Spenders on Credit Cards
- On Average, Big Spending Households
- The Total Spending Opportunity Favors Segments with More Households
- Trends in Card Product Ownership
- Trends in Primary Card Brand
- Rewards Program Participation

3. Network Platforms
- Visa Signature and Signature Preferred
- Visa Infinite
- World MasterCard
- World Elite MasterCard

4. Leading Issuer's Product Offerings
- JP Morgan Chase
- American Express
- Citi

5. Conclusions and Strategic Recommendations
- Know Thy Segment
- The Difficulty Differentiating Travel Experiences
- Mobile Will Redefine Premium Service
- Premium Cards Will Always Be a Niche Market
- The Mass Exclusivity Paradox

List of Figures

Figure 1: HNW Household Formation Remains Relatively Weak
Figure 2: The Total Number of High-Income Households Has Recently Reversed Its Decline
Figure 3: The Large Spend of HNW/High-Income Households Is Balanced by Larger Numbers of Mass Affluent
Figure 4: Premium Card Product Ownership by Wealth and Income Segments, 2015
Figure 5: Brand of Primary Credit Card by Wealth and Income Segments, 2014
Figure 6: Credit Card Rewards Program Participation by Wealth and Income Segments, 2014

List of Tables

Table 1: Average Card Spending per HNW and High-Income Households, 2014 vs. 2012
Table 2:Change in HNW and High-Income Card Spending from 2012 to 2014
Table 3: Visa Signature/Signature Preferred
Table 4: Visa Infinite
Table 5: World MasterCard
Table 6: World Elite MasterCard
Table 7: JPMorgan Chase Premium Offerings
Table 8: American Express Premium Card Offerings
Note: Product cover images may vary from those shown
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- American Express
- Citibank
- City National Bank
- Discover
- Facebook
- JPMorgan Chase
- MasterCard
- Visa
Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown
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