Research Outline

Credit Cards Partnerships: Business Model


To have a broad understanding surrounding the credit card partnership business model. An ideal response would include - how to start the business, challenges, or threats, and opportunities.

Early Findings

There are three ways for companies wanting to start a credit card business - affiliate programs, affinity partnerships, or by starting a card-issuing company from scratch.

Starting a credit card business partnership

  • Companies like Visa does not issue credit cards but helps companies create a co-branding program. Their programs are particularly designed to help merchants attract new customers, increase sales, and deliver value.
  • A co-branded credit card is issued in partnership with a retailer of consumer goods or services issues in partnership with a particular credit card issuer or network. The co-branded credit card usually bears the logo of both parties- one is the merchant and the other is bank or card network such as Visa, MasterCard, American Express, etc.

Credit Card Partnership with Visa

The process of getting a credit card with a company name involves a 5 step process.

Role of Visa in Co-branded card program

  • The role of Visa involves supporting its co-brand partners through advertising and marketing programs that encourage the use of Visa cards.

Co-branded credit cards Market

  • According to Packaged Facts, about 52% of American Express, MasterCard, or Visa cardholders use co-branded cards.
  • According to the United States Co-Branded and Affinity Cards Market Report 2019, co-branded credit cards generated $990 billion in purchase value and with an increase of 7.9% in value from 2016.