The limited appeal of co-branded credit cards among Britons

Are co-branded credit cards popular among Britons? Not broadly, but they do appeal to one in five higher-income individuals. According to data from YouGov Surveys: Serviced, only 7% of adults overall own a co-branded card. However, ownership climbs to 18% among those earning over £60,000, compared to just 5% among individuals with incomes below £39,999.

A co-branded credit card is a type of credit card that is issued by a bank or credit card company in partnership with a specific brand, retailer, or service provider. These cards typically offer special rewards or benefits when used to make purchases with the partnering brand. Cardholders can earn points, discounts, or cashback for spending, both with the co-branded partner and sometimes on general purchases.

When it comes to personal purchases 36% of co-branded credit cardholders use general-purpose cards most often, while 43% use their co-branded cards. Looking at the types of co-branded credit cards owned, retailer-affiliated cards are by far the most common (52%), especially among those earning between £40,000 to £59,999 income (40%). Travel-affiliated co-branded cards (e.g., airline, hotel, etc.) are more common among higher-income Britons, with 57% of those earning over £60k owning one.

When it comes to managing debt, 49% of co-branded cardholders pay off their full balance each month, compared to 45% of general-purpose cardholders and 39% of store-specific cardholders. Additionally, 16% of co-branded cardholders have no outstanding debts on their cards, slightly higher than the 13% of general-purpose cardholders who report the same.

So much for how people manage their credit card debt. But why do consumers choose particular cards in the first place? We look at the data and the factors that feed into choice vary by the type of cardholder.

For co-branded credit cardholders, cashback and reward programs are the top priority, with 63% considering these features important. In comparison, only 38% of general-purpose cardholders prioritize rewards. Special perks like travel benefits also have stronger appeal for co-branded cardholders (40%) compared to general-purpose cardholders (17%). Trust in the affiliated partner is an important consideration for 24% of co-branded cardholders, much higher than for general-purpose cardholders (10%).

For those who don’t own a co-branded card, the reasons are varied. Many feel their current credit cards meet their needs (39%), while others are concerned about managing too many cards (29%) or facing high interest rates (17%) or annual fees (13%). 

Methodology: YouGov Surveys: Serviced provide quick survey results from nationally representative or targeted audiences in multiple markets. This study was conducted online on 7-8 October 2024, with a nationally/ representative sample of 2004 adults (aged 18+ years) in Great Britain, using a questionnaire designed by YouGov. Data figures have been weighted by age, gender, income, education and social grade to be representative of all adults in Great Britain (18 years or older) and reflect the latest ONS population estimates.