NEW YORK—As if credit unions needed more proof that competition is fierce in the credit card rewards space, a new report reveals that the big issuers doubled their rewards spending last year.
Business Insider reported that in 2016, the largest credit card issuers spent $22.6 billion on rewards, compared to $10.6 billion in 2010.
“In Q1 2017, credit card issuers spent $6.2 billion on rewards, compared to $5.1 billion in Q1 2016, a 22% year-over-year growth rate. Beginning in 2016, Chase has led the pack in total rewards spending. Spending on credit card rewards at Chase grew 123% since 2010, and Chase now spends more money on rewards than American Express,” Business Insider said.
Longtime rewards leader American Express had the smallest increase in rewards spending, with a 36% growth during the period of 2010-2017, the news outlet stated.
“With the loss of their deal with wholesale retailer Costco, American Express is offering more lucrative rewards on all its other cards. Citibank has the highest percentage increase in spending since 2010 (333%). Citi won the Costco deal and has also been busy launching its own rewards products, including Citi Double Cash—which can pay up to 2% cash back—and its suite of Thank You products,” Business Insider noted.