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 first step involves developing a business plan and outlining the estimated size and demographics of the existing customer base.
• Companies wanting to co-brand with Visa should also outline the benefits, pricing, and promotion that distinguishes the co-branded credit card.
• The third process involves determining the financial institutions that fit with the company’s marketing strategy.
• Further companies should issue a request for proposal (RFP) to determine the institution they want to partner with.
• The last step involves negotiating the contract with the issuer of the company’s choice.

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.