Consumer credit cards reward value to surpass $65B by 2023: research

Digital reward schemes will be instrumental in encouraging spend during the pandemic

credit cards rewards

Consumer credit cards reward value to surpass $65B by 2023: research. Source: shutterstock.com

According to Juniper Research, global reward values for consumer credit cards will grow to $67.9 billion in 2023, up from $60.4 billion this year. That’s due to the fact that consumer credit spend recovers post-COVID.

The report states that digital reward schemes increase brand loyalty by growing the value proposition of repeat spend.

Besides, credit card spend in 2020 reduced by 13% owing to the COVID-19 pandemic. Industries including travel, tourism, and hospitality became the most heavily impacted.

Along with that, the number of credit cards in issue expected to exceed 3 billion worldwide by 2023. This way, there is potential for brands to leverage card ownership and foster loyalty using rewards.

Card loyalty scheme providers should leverage digital platforms already used for payment security to better target and engage consumers via apps and push notifications, thus differentiating themselves from the competition and generating customer advocacy
Susannah Hampton, research author  

We’ve reported that 29% of Americans are turning to rewards balances to help them stretch their budgets and buy the essentials.

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