Co-Branded Credit Cards Smoke, Private Labels Choke

Co‑branded credit cards thrive when issuers and companies create a mutually beneficial relationship. They build off their individual strengths to fuel customer acquisition, deepen loyalty, and drive significant revenue. The most successful partnerships keep credit standards strong and expectations aligned, avoiding the friction that happens when one side pushes for approvals the other can’t responsibly deliver. Long‑standing partnerships between major airlines and the largest FIs show the upside, while newer examples highlight the risks of mismatched goals and poorly tested business models. There’s been a plummet in private-label credit cards, as well. 

Opportunities span major brands and smaller niches, but scale and program complexity demand executive commitment, and careful sector selection. Smaller issuers can gain traction through platform service providers, though they must negotiate fair terms, maintain rigorous credit practices, and plan for downturns—or even an exit. Still, well‑managed co‑brands are proven to strengthen both sides and feed the bottom line.

Key questions discussed in this Credit Payments report: 

• What co-brand sectors drive consumer credit cards?
• Who are the key co-brand issuers?
• Why is the private-label credit card business floundering?
• What are some trends in co-branded credit cards?
• Is there room for small players in co-branding?
• How can a small issuer address the market? 

Companies Mentioned: 

AAA, AARP, Affirm, Air Portugal, Alibaba, Amazon, American Eagle, American Express, Apple, Ashley Home Stores, BJ’s, Banana Republic, Bank of America, Barclays, Bass Pro, Best Buy, Best Western, Belk, Bilt, Bloomingdale’s, Breeze Airlines, Brex, Bridgestone, British Airways, CFNA, Cabela’s, Capital One, Cardless, Celebrity Cruise Lines, Chase, Chevron, Citi, Coinbase, CommonSpirit, Costco, Dick’s Sporting Goods, Discover, Disney, Ducks Unlimited, FICO, FIS, Fiserv, Ford Motor Co., Frontier Airlines, General Electric, General Motors, Goldman Sachs (Chase), HCA Healthcare, Harley-Davidson, Hilton, Hyatt, IHG, JCPenney, JetBlue, Klarna, Kohl’s, Korean Air, LATAM Airlines, L.L. Bean, Lowe’s, MGM Hotels, Marriott, Mattress Firm, Mastercard, Norwegian Cruise Line, Old Navy, Pandora, PayPal, Polaris, Qatar Airlines, QVC, REI, Royal Caribbean, Saks Fifth Avenue, Sam’s Club, Shell Oil, Southwest, State Farm Insurance, Subaru, Suzuki, Synchrony, TD Bank, TJX, U.S. Bank, United Airlines, Visa, Verizon, Virgin Red, Walmart, Wells Fargo