Co-Brand Credit Card Agreement
The first example of co-branding cards dates back to the 1980s, when airlines began partnering with banks and card issuers to offer credit miles cards. Of course, these types of plastic are still very popular today: for example, American Airlines` MasterCard, which is offered by Barclay Bank; United Airlines Visa, through Chase Bank; and the Delta Skymiles American Express card. The hotels did not take long. In fact, the airline segment accounts for 38% of co-branding credit card programs, according to co-Branded and Affinity Cards in the U.S., 7th edition, a report by market research firm Packaged Facts. This year, a study by MBLM identified the ten brands that U.S. consumers identify with the most. The introduction of co-branding credit cards strengthens Telefonicas` customer development and loyalty strategy, said Luis Miguel Gilperez, Director of Mobile Business, Telefonica Latin America. MasterCard is an excellent partner for this program – its expertise, combined with the strong presence of both companies in the region, is the perfect recipe for success. Launched in January 2017, Amazon`s Visa Prime Prime card (available to Amazon Prime members) offers a 5% discount on all purchases made on Amazon.com.
It also offers 2% cashback when paying at restaurants, gas stations and pharmacies and 1% on all other purchases. Other benefits are overseas transaction fees, travel insurance, and a 24/7 concierge service. Why could a retailer offer both? To attract more cardholders, many consumers find it more convenient to use a card that they can use anywhere, especially if they are careful, if they have too many credit cards in their wallets. Co-branding cards could also offer better terms (store cards have notoriously high interest rates). At the same time, the card serves as an advertisement for the company, since every time he uses it, the customer sees the logo of the company….