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Please provide statistics on how significant the brand on their credit card (Amex, Visa, Mastercard) matter to consumers when choosing a credit card?
Hello! Thank you for your question on the significance of a network brands in relationship to choosing a credit card. The short answer is that 54% of consumers are not concerned about the networks of their credit cards. Of consumers that value a particular network brand, they report it is because of benefits, perks and status quo associated with that brand. Below you will find a deep dive of my research findings, as well as how I came to this conclusion. I hope that this helps you.
METHODOLOGY
I extensively searched academic databases, corporate websites, industry reports and regulatory filings to find you the significance of network brands, when choosing a credit card. However, there was limited information available regarding his topic. I believe this is because 54% of consumers are not concerned about the networks of their credit cards. My results are as follows:
FINDINGS
A recent study by the Navy Federal Credit Union showed that most consumers are not concerned about the networks of their credit cards. Approximately 54% of current Visa cardholders stated that the network brand was not of significance to them and only 11% reported that they would switch networks. The study also revealed that most consumer were more concerned with benefits and interest rates associate with the card, rather the network it belonged to. In a recent survey by LendEDU, 23.60% of millennials stated that they viewed their credit card as a status symbol.
The three top three credit card companies in terms of brand loyalty were in the United States were Discover, American Express and Capital One. Discover was ranked number one in term of brand recognition due to its balance transfers and rewards. American express ranked in at number two due to "long-running relationship with more affluent customers. The prestige of having an AmEx card keeps those consumers loyal to the brand." Capital One ranked third due to its rewards programs. In a case study by TYSY, "15.5% of American Express cardholders in the U.S. stated that identifying with the brand was a major reason for choosing a credit card. By contrast, only 8.5% of MasterCard cardholders and 7.3% of Visa cardholders stated the same"
In a study published by Deloitte, 47% of consumers reported that an annual fee was the most important attribute when choosing a credit card, followed by interest rates at 28% and rewards and perks at 17%. Network or lender type was only ranked of importance by 6% of consumers.
CONCLUSION
To wrap things up, 54% of consumers are not concerned about the networks of their credit cards. Of consumers that value a particular network brand, they report it is because of benefits, perks and status quo associated with that brand.
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