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Income Analysis of Consumer Payment Methods & Rewards vs. Non-Rewards Credit Cards
Phoenix Marketing International (PMI)Financial Services Division
July 2012
Greg [email protected](828) 697-9191
Contact Information:
Copyright © Phoenix Marketing International 2012. All Rights Reserved.
Chart Excerpts from PMI Research Report:
2
Incidence of Owning a Rewards Card vs. Non-Rewards Card – by Income Group -- 2011
Copyright © Phoenix Marketing International 2012. All Rights Reserved.
Within each income group, the incidence of owning a rewards card was significantly higher than the incidence of owning a non-rewards card.
Percent of Credit Card Households Owning Rewards vs. Non-Rewards Credit Cards Within Income Group
Chart 1
Source: Phoenix Credit Card Market Tracker, January-December 2011. Total Sample: 18,905 consumer credit cardholders aged 21+ with HHI $20K+.
3
Credit Card Spending Dollars -- 2011
% Spending Dollars on Non-Rewards Accounts% Spending Dollars on Rewards Accounts
Copyright © Phoenix Marketing International 2012. All Rights Reserved.
Percent of Credit Card Spending Dollars on Rewards vs. Non-Rewards Accounts Within Income Group
Chart 2
Within each income group, share of total credit card spending dollars was far higher on rewards accounts vs. non-rewards accounts.
92% % Card HHs Active on Any Card Owned in an Average Month Within Each Income Group
93% 91%92% 94%92% 96%93% 98%
Source: Phoenix Credit Card Market Tracker, January-December 2011. Total Sample: 18,905 consumer credit cardholders aged 21+ with HHI $20K+.
4
Credit Card Spending Dollars -- 2003
% Spending Dollars on Non-Rewards Accounts% Spending Dollars on Rewards Accounts
Copyright © Phoenix Marketing International 2012. All Rights Reserved.
Percent of Credit Card Spending Dollars on Rewards vs. Non-Rewards Accounts Within Income Group
Chart 2a
In 2003, the share of total credit card spending dollars far higher on rewards accounts than non-rewards accounts only at higher income levels.
Source: Phoenix Credit Card Market Tracker, January-December 2003. Total Sample: 14,304 consumer credit cardholders aged 21+ with HHI $20K+.
5
Credit Card Revolving Balance Dollars
% Revolving Balance Dollars on Non-Rewards Accounts% Revolving Balance Dollars on Rewards Accounts
Copyright © Phoenix Marketing International 2012. All Rights Reserved.
Percent of Credit Card Revolving Balance Dollars on Rewards vs. Non-Rewards Accounts Within Income Group
Chart 3
Within each income group, share of balances was higher on rewards accounts vs. non-rewards accounts – particularly among upper-income
credit card-owning households.
65% % Card HHs Revolving a Balance on Any Card Owned in an Average
Month Within Each Income Group
58% 62%65% 60%61% 48%56% 43%
Source: Phoenix Credit Card Market Tracker, January-December 2011. Total Sample: 18,905 consumer credit cardholders aged 21+ with HHI $20K+.
6
Credit Card Revolving Balance Dollars -- 2003
% Revolving Balance Dollars on Non-Rewards Accounts% Revolving Balance Dollars on Rewards Accounts
Copyright © Phoenix Marketing International 2012. All Rights Reserved.
Percent of Credit Card Revolving Balance Dollars on Rewards vs. Non-Rewards Accounts Within Income Group
Chart 3a
In 2003, the balance share profile was reversed – with a higher percentage of revolving balances carried on non-rewards cards than
rewards cards.
59% % Card HHs Revolving a Balance on Any Card Owned in an Average
Month Within Each Income Group
56% 60%61% 59%58% 50%54% 38%
Source: Phoenix Credit Card Market Tracker, January-December 2003. Total Sample: 14,304 consumer credit cardholders aged 21+ with HHI $20K+.
7
Credit Card Annual Fee Dollars -- 2011
% Annual Fee Dollars Paid on Non-Rewards Accounts% Annual Fee Dollars Paid on Rewards Accounts
Copyright © Phoenix Marketing International 2012. All Rights Reserved.
Percent of Credit Annual Fees Paid on Rewards vs. Non-Rewards Accounts Within Income Group
Chart 4
Within each income group, share of annual fee dollars was higher on rewards accounts vs. non-rewards accounts – particularly among upper-
income credit card-owning households.
32% % Card HHs Paying an Annual Fee on Any Card
Owned in an Average Month Within Each
Income Group
34% 29%30% 32%31% 40%32% 55%
Source: Phoenix Credit Card Market Tracker, January-December 2011. Total Sample: 18,905 consumer credit cardholders aged 21+ with HHI $20K+.
8
Credit Card Revenue Value* -- 2011
% Revenue Dollars Value on Non-Rewards Accounts% Revenue Dollar Value on Rewards Accounts
Copyright © Phoenix Marketing International 2012. All Rights Reserved.
Percent of Revenue Value on Rewards vs. Non-Rewards Accounts Within Income Group
Chart 5
Within each income group, share of revenue value *was higher on rewards accounts vs. non-rewards accounts – particularly among upper-
income credit card-owning households.
* Revenue value figures were derived from cardholder reported data on spending, revolving balances, account APR and annual fees. A revenue value model was created to identify proxies for interchange, finance charge s and annual fee value.
Source: Phoenix Credit Card Market Tracker, January-December 2011. Total Sample: 18,905 consumer credit cardholders aged 21+ with HHI $20K+.
