Mercator Advisory Group Report: Merchant-Funded Networks: Bolstering Credit Card Rewards
Boston, MA (PRWEB) December 12, 2012
The recession has turned many consumers into value-conscious shoppers, and merchants are seeking ways to exploit this mentality to attract new and retain existing customers. At the same time, issuers have an urgent need to create new revenue streams to compensate for declining balances on credit portfolios and reduced interchange revenue on debit portfolios. The combination of these forces is creating an enormous opportunity for merchant-funded network vendors, which have developed technology that can bring issuers, merchants, and consumers together in a way that benefits all stakeholders.
Mercator Advisory Groups newest report, Merchant-Funded Networks: Bolstering Credit Card Rewards, describes how U.S. credit issuers are implementing merchant-funded programs alongside proprietary reward schemes, and presents several ways for issuers to think about the value these programs provide.
Michael Misasi, analyst at Mercator Advisory Group and author of the report comments, "The amount of venture capital that merchant-funded program vendors are raising suggests that investors are confident in the future of card-linked offers. Mercators analysis confirms that there are several reasons to be hopeful but also identifies areas where significant progress is required for the market to realize its multibillion-dollar potential.