There’s no denying it. Canadians love their credit cards and the rewards that come along with them. A recent survey comes to a similar conclusion. 87 percent of credit cardholders were enrolled in reward program, according to a study by market research firm J.D. Power. And on average we spend $600 per month on our main credit card.
There have been many predictions about the future made over the years. (If you’re looking for bold predictions, just watch the cult classic movie, Back to the Future: Part II – I’m still waiting for my flying car!)
One of the predictions that may actually come true in our lifetime is the end of credit cards as we know them. For years, the plastic in our wallet has been the standard form of payment, but that’s rapidly changing. It’s not being replaced by cash. No, it’s being replaced by a new system that involves the transfer of money virtually using our smartphones and other smart devices.
If I were to look inside your wallet right now, what would I find? For most of it, it would probably be your driver’s license, transit pass and a co-branded credit card or two. Co-branded credit cards are a growing trend in Canada and it’s not hard to see why. You’re rewarding for spending money at your favourite retailer. What’s not to love? Not only are they a hit with cardholders, companies love them, too. Let’s take a look at three reasons why companies love co-branded credit cards so much and what you should be aware of as a consumer.
