(Barclays US is already trying to appeal to the middle-income consumers in how it currently promotes its online savings accounts. There’s definitely room for middle-tier credit cards to grow as people watch their costs.” (Apple phased out the Barclaycard with Apple Rewards product when it created the Apple Card with Goldman Sachs.) American Bankers says Barclays US is working on “an assortment of more stable, middle-market travel and retail cobranded card partners.” According to an industry analyst cited by American Banker, “Considering the effects of the pandemic and rising inflation, Barclays US could benefit from this strategy of going after middle-income consumers with practical cobranded cards that generate rewards and typically have no annual fee. American Banker reports that Barclays is refocusing after losing its NFL, Uber and Apple co-brands. Partnering with a retailer like The Gap may also indicate that Barclays US is diversifying its co-brand card portfolio. The portfolio includes both a co-branded card (with Mastercard) and a private label card for use at The Gap family of stores, including Banana Republic, Athleta and Old Navy.Īs reported by American Banker, this is the first time Barclays US will “offer consumers a standalone private-label credit card that does not operate on an open-loop network like Visa or Mastercard.” In the article, Barclays US Consumer Bank CEO Denny Nealon calls the private label card “a critical component of the full spectrum of lending solutions” and points to cobranding as “the company’s core strategy.” The approach, says Reuters, is “a way for Barclays to gain customers in a market where its own branding lacks the reach of incumbent rivals such as JPMorgan and Citibank.” In May 2022, Barclays US will be launching a suite of new credit cards with The Gap. New co-brand partnership: Barclays US and The Gap In the meantime, let’s dive into the product offerings and see how Barclays’ strategy compares with others in the industry. As these offerings emerge, it will also be interesting to see how the market – including consumers, competitors and merchants – respond. We haven’t seen anything in-market yet, but we are keeping watch to see how Barclays and its partners will be marketing these co-brand credit card and BNPL products. Its $20 billion of assets place it as the ninth largest card provider in the country, far below market leaders Chase and Citi, which have more than $100 billion in card balances.” However, according to FT, “Barclays remains a relative minnow in the U.S. It sees both areas as growth opportunities, hoping to steal market share from its much larger competitors.Īccording to American Banker, Barclays US currently has 21 co-brand partners, including American Airlines, Jet Blue and AARP. market, as reported by Financial Times (FT). New offerings from Barclays US include private-label co-brand credit cards and buy now pay later (BNPL) products – two signs the issuer is “aggressively expanding” in the U.S.
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