How Co-branded credit cards benefit the issuer, partner and the user

If you are a regular customer of departmental stores, you may be familiar with how stores try to pitch credit cards to customers at the payment counter. These benefits may include- Flat discount at partner website Extra reward points Welcome/milestone vouchers Shopping- Banks also collaborate with retail stores and departmental stores to offer co-branded credit cards. Most popular benefits would come in the form of- Complimentary membership to the store Accelerated rewards at the store Shopping vouchers on reaching set milestone Flat discount vouchers Lifestyle/Hotels- Some of the banks also offer credit cards in association with lifestyle brands or hotels. Some other benefits include: Customer Engagement- Co-branded credit cards usually offer better rewards and additional perks with the given brand. Some of the advantages that the partners enjoy include: Improved Brand Visibility- When a co-branded credit card is launched in the market, the brand will have two-fold Enhances Customer Loyalty- Since these cards offer various types of benefits when the user shops at the partner stores, he would have a better experience.