Value of consumer credit card rewards ‘to exceed $108bn by 2026’

The value of consumer credit card rewards will exceed $108 billion by 2026, according to research from analyst firm Juniper Research.

Juniper said the value of these rewards currently sits at $92 billion.

The analyst firm said this 15 per cent growth will be driven by an increase in the adoption of co-branded credit cards by retailers to boost repeat user engagement.

Juniper claims consumers preference for having their loyalty record in one place, instead of spread across multiple apps or physical cards, will push the global value of credit card rewards to increase.

The research found that China would be a significant growth area for consumer credit card rewards, predicting these will grow by 18 per cent between 2022 and 2026.

In addition, the research found that the total value of personal credit card rewards will be triple that of corporate credit cards in 2026, saying that while corporate cards are often used for travel purposes, this significantly reduced during the pandemic, with steady growth anticipated as the situation normalises

The analyst firm recommended that payment providers enter strategic partnerships with retailers or brands to exploit the full potential of credit card reward schemes, claiming they will fall behind more appealing alternatives if not.

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