Consumer Payment Card News

Card Mail

A new report projects that U.S. households will receive about 5.3 billion credit card solicitations during 2007. The full year projection shows a slight decrease from the 5.76 billion offers received last year, which was also down from the all time high of 6.05 billion card offers received in 2005. According to Synovate’s “Mail Monitor,” response rates will edge up slightly to 0.6% from 0.5%, representing some 32 million applications for new credit cards. The 2007 dip is a continuation from 2006, and mainly due to the Bank of America/MBNA merger and a decrease in direct mail by Chase and Capital One. Synovate says that despite the decrease, 2007 will likely be the third heaviest year on record for credit card direct mail since Synovate first began tracking solicitations in 1988. Synovate says other acquisition channels, particularly the Internet, will play an increasingly important role but direct mail, with more than 50% of card applications, will likely remain dominant for the foreseeable future.

CARD MAIL HISTORICAL
YEAR OFFERS RESPONSE
1998: 3.44b 1.2%
1999: 2.54b 1.0%
2000: 3.54b 0.6%
2001: 5.01b 0.6%
2002: 4.89b 0.5%
2003: 4.29b 0.6%
2004: 5.23b 0.4%
2005: 6.05b 0.3%
2006: 5.76b 0.5%
2007: 5.30b 0.6%
Source: Synovate’s Mail Monitor

Leave A Reply