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Private Label Credit Cards Market Buffeted by COVID-19, BNPL


, transactions and dollar volume for private-label credit cards dropped sharply with the onset of COVID-19, but then experienced recovery in the second half of the year.  Even so, Packaged Facts projects flat to low growth in upcoming years for the private-label card market, with receivables estimated at $142 billion in 2020.
Private label credit cards, also called store cards, are the original credit cards. Traditional private label credit cards are good for in-store credit only, as opposed to store credit cards that are co-branded with Visa, Mastercard, or American Express, and therefore applicable for general use.
Private label credit card performance will continue to be hampered by the bankruptcies of some large partner retailers, tied not only to the accelerated surge in e-commerce in the wake of COVID-19, but to the longer-term trend of mall closings since 2010.  ....

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