The movement to virtual private label cards housed within retailer mobile apps foretells the eventual demise of the physical card, according to market research firm Packaged Facts in the report, Private Label Credit Cards in the US, 9th Edition.
A telling example is that already more than 30 percent of private label card issuer and program manager Alliance Data Systems´ private label card purchase value is made via card-not-present transactions.
More broadly, retailer loyalty programs are not only increasingly digital in nature but also increasingly take any kind of payment–not just private label card payments. We expect the multi-tender loyalty program trend to continue in force, with strong continued uptake over the next two to three years.
Moving to a multi-tender loyalty program option that utilizes non-credit payment types such as cash, debit or check provides the opportunity to control and assemble richer consumer purchase behavior profiles, allowing for increasingly sophisticated targeted marketing. By tying together email accounts and other means of matching and integrating a customer´s behavior, the multi-tender loyalty program operator gains a broader, richer set of customer data, and can target accordingly.
Taking things farther, the loyalty program operator can integrate omni-channel behavior, thanks to digital loyalty platforms that bridge the offline world with the desktop, tablet and mobile online world. Retailer partners win because they can market more effectively to a wider audience; private label card issuers win because they can access additional prospective cardholders.
Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, consumer packaged goods, and pet products and services.