Mastercard has announced that outdoor-goods retail firm Cabela’s has picked it as its credit-card network. This comes as big credit-card networks compete for high spenders by investing heavily in marketing travel co-brand programs besides forming partnerships with retailers of sporting goods which attract loyal shoppers with perks such as access to events and so on.
Per The Nilson Report, a trade publication, as of June last year Cabela’s was ranked in the 15th position among the largest issuers of credit cards in the United States. Later last year Cabela’s was acquired by Bass pro. According to the trade publication the total amount spent on the credit card issued by Cabela’s was approximately $10.7 billion in 2017’s first half.
Mastercard expects the transition of Cabela’s to its network to be completed before the end of the year. Cabela’s credit-card network has been Visa while that of its parent company, Bass Pro Shops, is Mastercard.
Bagging Cabela’s business is just the latest win for Mastercard, the second largest credit card network in the United States. Last summer Kroger dropped Visa as its co-brand card partner in favor of Mastercard. In September it was also announced that the cash-rewards credit card of Bank of America would be switched from Visa to Mastercard for new members starting this year.
Visa is still the undisputed market leader though. By the close of September last year the number of Mastercard credit and debit cards in circulation was approximately 405 million in the United States per data obtained from Nilson. Visa on the other hand had approximately 835 million cards in circulation.
This comes in the wake of Mastercard releasing its quarterly report which saw quarterly profit topping Wall Street’s estimates. The good performance was attributed to a busy festive season shopping where a higher number of people swiped their debit and credit cards for larger amounts. Other factors included economic growth in the United States.
“Payment volumes (for Mastercard) will stay healthy, we think, and a more sustained global economic recovery could eventually lead to an acceleration of spending and further revenue growth,” Scott Kessler, an analyst at CFRA, wrote in a client note.
According to the chief financial officer of Mastercard, Martina Hund-Mejean, most of the cross-border revenues were generated in the APMEA region which basically consists of Africa, the Middle East, Asia Pacific countries and Europe. Revenues from this region came in at $435 billion and this was higher than the $423 billion that was generated in the U.S.