Capital One Targets Transactors with Co-Branded Credit Cards

Capital One Targets Transactors with Co-Branded Credit Cards

November 14, 2013         Written By Natalie Rutledge

Capital One is aiming to expand its business by creating more co-branded and private label credit cards. These are cards that offer rewards through another company, like a retail store or airline.

Capital One is pushing in this direction because of the type of consumers this will bring into their portfolio. The company is now focused on consumers that credit bureaus classify as “transactors.” These are shoppers who actively use their credit cards and pay off their balances in full at the end of the month.

According to Capital One’s research, these spenders are attracted to the rewards associated with co-branded credit cards. Capital One would like to build a stronger clientele of transactors moving forward because those consumers are much less likely to default on their credit card business.

“We are absolutely focused on, in fact, growing this business,” Richard Fairbank, chief executive at Capital One, said on a conference call with investors. “It’s not about just who can be the biggest, but it’s about selectively getting the best, the high-quality partners who are motivated to really build the franchise with a partnership deal and a contract that, in fact, can allow a win-win for both parties.”

As a result of that focus on quality over quantity, Capital One sold its portfolio of Best Buy to Citibank earlier this year for close to $7 billion. The company saw no diminished value in that partnership and chose to move on to new opportunities.

In the coming months, we may see a lot more retail credit cards backed by Capital One.

The information contained within this article was accurate as of November 14, 2013. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


About Natalie Rutledge

Natalie Rutledge majored in Communications at Mississippi State University. She was in sales for a number of businesses and spent nine years working as a communications advisor to various entities. Natalie can be contacted directly at
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