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Global Retailer Payment, Gift and Loyalty Cards




LONDON, Aug. 27, 2014 /PRNewswire/ -- has added a new market research report:

Global Retailer Payment, Gift and Loyalty Cards

Global Retailer Payment, Gift and Loyalty Cards is a report, based on a comprehensive investigation covering over 6,000 major retail brands across 60 countries worldwide, about the provision of co-branded and private-label payment cards, gift cards and loyalty cards by major retailers around the world. Retailer participation in coalition loyalty schemes is also considered.

Eight regions covered, and the countries included in each, are as follows:

- Asia: China, Hong Kong, India, Indonesia, Japan, Malaysia, the Philippines, Singapore, South Korea, Taiwan, Thailand, Vietnam;

- Australasia: Australia, New Zealand;

- Eastern and South-Eastern Europe: Bosnia-Herzegovina, Bulgaria, Croatia, Georgia, Greece, Romania, Russia, Serbia, Slovenia, Turkey, Ukraine;

- Latin America: Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Mexico, Paraguay, Peru, Uruguay;

- North America: Canada, the USA;

- Northern and Central Europe: Austria, the Czech Republic, Denmark, Estonia, Finland, Germany, Hungary, Latvia, Lithuania, Norway, Poland, Slovakia, Sweden, Switzerland;

- South Africa: South Africa;

- Southern and Western Europe: Belgium, France, Ireland, Italy, the Netherlands, Portugal, Spain, the UK.

In total, the research identifies close to 2,000 retailer payment cards, over 2,000 closed-loop gift cards, and over 3,500 proprietary retailer loyalty programs and coalition loyalty schemes, thereby providing a definitive global analysis of retailer co-branded, loyalty and private label programs

Moreover, the PartnerBASE™ database that accompanies the report details each of the many initiatives for retailer credit, deferred debit, debit and open-loop rechargeable prepaid cards traced by Finaccord, specifying the operating models used by retailers, the payment networks to which the cards are affiliated and the identity of the ultimate card issuers in each case.

Key findings from the executive summary include:

- of the payment card programs in evidence, 53.2% are based around the use of single external card issuers, with a further 6.7% using multiple external partners and 14.8% captive card-issuing entities, while 18.9% are reportedly managed by the retailers themselves, without support from a separate partner, either external or captive;

- across all retailer payment card schemes identified worldwide, Visa is used as an associated payment network brand slightly more frequently than MasterCard although, by number of programs, private-label schemes continue to outnumber both by quite a wide margin;

- with regards to loyalty programs, also included in Finaccord's research due to their importance as a platform for marketing payment cards, 55.7% of retail brands researched are involved in either a proprietary or coalition loyalty scheme, or in both;

- when segmented by region, retailer involvement in loyalty programs is most prevalent in Asia, where 66.7% of retail brands surveyed participate in one or more loyalty schemes, followed by Eastern and South-Eastern Europe (63.9%) and North America (61.2%).
What is this report about?..3
In most countries, retailing is the most important co-branding arena for card issuers…3
… and the number of active coalition loyalty programs is continuing to increase each year..3
The evolution of the retailing market itself also encourages the launch of retailer payment cards 3
Survey of retailers ...4
The survey's scope covers close to 6,500 major retail brands drawn from ten categories and 60 countries…4
… and classified according to their use of offline-only, online-only or mixed distribution models ..4
Retailers are divided among eight different regions for the purposes of analysis...6
Definitions ...6
Payment cards, gift cards and loyalty programs...6
Operating models ...7
Weighted shares.7
Retailer payment cards..9
Credit, debit and prepaid cards..9
Globally, over a quarter of major retail brands market a co-branded or private-label card….9
…with North America the region laying claim to the highest provision rate for such cards 9
Retailer payment cards are organised through a variety of different operating models…11
… including use of external, joint venture and captive card issuers plus schemes managed internally..11
Preferred operating models differ substantially from one region to another around the world.11
As would be expected, the supply structure for retailer payment cards is highly fragmented..13
Issuers owned by GE rank among the leaders although they are in the process of being divested13
A substantial proportion of retailer payment cards remain configured as private-label cards…...15
… with MasterCard and Visa well ahead of other international payment card networks..15
Fuel distributors are the most likely to have introduced their own payment card..17
... although most schemes lie in the supermarket / hypermarket sector ...17
Gift cards ...19
Stored-value gift cards are most widespread among major retail brands in North America….19
… and among sporting goods and department store / variety brands at the global level.20
Retailer loyalty programs .22
Over 55% major retail brands worldwide participate in some form of loyalty program….22
… with the rate of involvement highest in Asia, at close to two thirds ...22
Involvement rates exceed 50% of those researched across eight of the ten retailer categories .23
Proprietary loyalty programs 25
Over 40% of major retail chains worldwide maintain their own proprietary loyalty scheme .25
Coalition loyalty programs26
A few coalition loyalty programs operate in more than one country…..26
… but most (including the most visible in Finaccord's analysis) are limited to just one 26

Retailer payment cards29
Credit, debit and prepaid cards29
Co-branded or priv ate-label credit cards are on offer from almost a quarter of major retailers...29
… with the largest share of schemes in evidence managed internally by the retailers themselves.29
Among card issuers, Cencosud is the leader in both unweighted and weighted terms… ...30
… and CMR Falabella rises to second position in the weighted analysis.30
Private-label card schemes are more numerous than those linked to national or international networks ...31
Payment card initiatives are most numerous among retailers in the supermarket and hypermarket sector ...32
Gift cards ...35
Stored-value gift cards have not yet gained much penetration among major retailers in Argentina35
Retailer loyalty programs .37
Close to a quarter of major Argentine retailers are involved in a loyalty scheme of one sort or another... ..37
… with fuel brands and retailers of books and media products the most likely to be active in these fields .37
Proprietary loyalty programs 38
Coalition loyalty programs39
The suspended ServiClub coalition scheme is expected to resume at some point in 2014 39
Retailer payment cards41
Credit, debit and prepaid cards41
Fewer than 20% of major retail brands in Australia offer a co-branded or private-label payment card…41
…with most that are active in this sphere relying upon an external partner to issue these cards41
Captive or internal provision is adhered to by just under a third of Australian retailers with cards...42
GE Money, HSBC and Lombard Finance claim the most partnerships for retailer cards 42
The majority of retailer cards in Australia run on the Visa network…43
… although private-label cards are most prominent in weighted terms 44
Three quarters of fuel retail brands surveyed have introduced their own payment card..45
Pure online retailers are the least likely to promote a payment card.45
Gift cards ...47
Over 40% of major retail chains in Australia promote stored-value gift cards…...47
…with initiatives for these products visible across all retailer categories...47
Retailer loyalty programs .49
A significant proportion of retail brands surveyed in Australia participate in some form of loyalty program.49
Retailers of consumer electronics are least likely to be involved in a loyalty program..49
Proprietary loyalty programs 51
Over a third of major retail chains in Australia have launched their own proprietary loyalty scheme...51
Coalition loyalty programs51
Seven coalition loyalty programs are adhered to by retailers in Australia… .51
…with all seven supporting one or more co-branded payment cards...51
flybuys possesses the largest member base of any loyalty scheme in Australia..51
5.0 AUSTRIA...53
Retailer payment cards54
Credit, debit and prepaid cards54
Only seven major retail brands in Austria operate their own co-branded or private-label payment card.54
... with most running this activity themselves rather than using a separate captive or external partner...54
card complete Service Bank and IKANO Bank are the two non-internal card issuers .55
Retailer cards in Austria are either private-label products or run on the Routex network.56
Fuel retail brands are by far the most likely to have introduced their own payment card.57
Gift cards ...58
Over a quarter of major retail brands in Austria offer stored-value gift cards to their customers..58
Just over 40% of retail brands surveyed participate in a loyalty program of one sort or another.60
Specialist retailers of health and beauty products are the most likely to have a loyalty program.60
Proprietary loyalty programs 62
Just under 40% of major retail chains in Austria have launched their own proprietary loyalty scheme...62
Coalition loyalty programs62
Three coalition loyalty programs are in evidence in Austria but few retail brands participate in them .62
6.0 BELGIUM ..63
Retailer payment cards64
Credit, debit and prepaid cards64
Almost a quarter of major retail brands operate their own co-branded or private-label payment card... .64
... with Buy Way Personal Finance the most commonly cited issuer of retailer cards..64
Formerly owned by BNP Paribas, this company is now controlled by Apax Partners..64
Seven of the eight retailers issuing their cards on an internal basis are fuel retailers...65
Buy Way Personal Finance is ranked first in both unweighted and weighted terms 65
Nearly two thirds of retailer cards run on private payment networks in Belgium...67
Fuel retail brands are most likely to have introduced their own payment card..69
Gift cards ...71
Over a half of major Belgian retailers offer a stored-value gift card...71
... with initiatives for these products visible across most retailer categories..71
Retailer loyalty programs .73
Over 40% of retail brands surveyed in Belgium participate in a loyalty program of one sort or another..73
Speciality retailers are the most likely to offer some form of loyalty program73
Proprietary loyalty programs 75
More than a quarter of major retail chains in Belgium have launched their own loyalty scheme.75
Coalition loyalty programs75
Two coalition loyalty programs include retailers in Belgium as participants..75
Retailer payment cards78
Credit, debit and prepaid cards78
Only three major retail brands in Bosnia-Herzegovina have introduced their own payment card78
... with all three issuing and managing these cards themselves78
... and with all three classifiable as private-label products..79
Gift cards ...81
Stored-value gift cards are offered by a minority of major retail brands in Bosnia-Herzegovina..81
Retailer loyalty programs .83
One third of retail brands surveyed participate in a loyalty program..83
... with specialist retailers of health and beauty products the most likely to do so.83
Proprietary loyalty programs 85
Five major retail chains in Bosnia-Herzegovina have developed a proprietary loyalty scheme...85
Coalition loyalty programs85
... although there is only one coalition loyalty program...85
8.0 BRAZIL..86
Retailer payment cards87
Credit, debit and prepaid cards87
Almost a half of major retail brands in Brazil operate a co-branded or priv ate-label payment card87
Itaú Unibanco is the most frequently named partner for retailer payment cards in Brazil.87
Bradesco's retailer card division expanded greatly following its acquisition of ibi in 200987
Other providers, including Cetelem and Losango, also serve a significant number of retailers...88GLOBAL RETAILER PAYMENT, GIFT AND LOYALTY CARDS
Captive and joint venture card issuers are utilised in a minority of cases…..88
… with internally-managed schemes occurring more frequently...88
Retail brands belonging to Walmart utilise a hybrid operating model88
Midway Financeira is a substantial player in retailer payment cards in Brazil…...89
…as is LuizaCred, a joint venture between Magazine Luiza and Itaú Unibanco..89
Given its partnerships, Itaú is likely to be the leading issuer of retailer payment cards 89
MasterCard and private-label programs are more numerous than Visa programs ..90
All retail brands in two categories have introduced their own payment cards…...92
… with brands operating an offline-only distribution model the most likely to promote a card .92
Gift cards ...94
Just under a quarter of major retailers in Brazil offer a stored-value gift card… ...94
… with initiatives for these products visible across all retailer categories except one ..94
Close to a third of retailers operating a mixed distribution model promote gift cards94
Retailer loyalty programs .96
Just under a half of retail brands surveyed participate in any form of loyalty program .96
Specialist retailers of consumer electronics are least likely to have a loyalty program.96
Proprietary loyalty programs 98
Almost a half of major retail chains in Brazil have launched their own proprietary loyalty scheme..98
Coalition loyalty programs98
Three different coalition loyalty programs have attracted major retail brands as partners in Brazil…..98
…with dotz named by the largest number of retailers98
Two coalition loyalty programs originate from the airline sector….98
…and both count retail brands owned by Walmart as active participants.98
9.0 BULGARIA..100
Retailer payment cards..101
Credit, debit and prepaid cards..101
Nine major retail brands in Bulgaria have launched a co-branded or private-label payment card.101
... with several making use of external card issuers for this purpose...101
UniCredit Bulbank claims two partnerships for retailer payment cards in Bulgaria.102
... and is also the owner of the Diners Club marque in this country.102
Most retailer cards in Bulgaria are configured as private-label products.103
Retail brands in only three categories have developed their own payment cards..104
Gift cards .105
... and involvement in gift cards is limited to just two105
Retailer loyalty programs ...107
Loyalty program involvement extends to over a half of retail brands surveyed in Bulgaria107
... with supermarket and hypermarket brands accounting for the highest share of initiatives 107
Proprietary loyalty programs ..109
Just under a half of major retail chains in Bulgaria have launched their own proprietary loyalty scheme .109
Coalition loyalty programs..109
Relatively few of the country's major retail brands have affiliated themselves to a coalition loyalty scheme.109
10.0 CANADA...110
Retailer payment cards..111
Credit, debit and prepaid cards..111
Just over 30% of retailers in Canada promote a co-branded or private-label payment card…..111
… with well over a third of these issued by captive providers..111
Although limited to four partners, Chase lays claim to some of the most important relationships..112
Canada Tire's captive partner serves four of the group's retail brands ...112
Canada hosts a comparatively fragmented supply structure for retailer payment cards113
President's Choice Bank serves the various retail brands of the Loblaw (Weston) group .113
Canadian Tire Bank has issued over 4 million MasterCard credit cards.113

Read the full report:
Global Retailer Payment, Gift and Loyalty Cards

For more information:
Sarah Smith
Research Advisor at
Email: [email protected]
Tel: +44 208 816 85 48

SOURCE ReportBuyer

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