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Credit card issuers are increasing their number of mailings offering premium cards to wealthy consumers, according to new research from Mintel Comperemedia, a Chicago-based firm that tracks direct marketing activity. During the second quarter, issuers sent 96 million direct-mail marketing offers for premium cards, up 28% from 75 million during the first quarter. In the second quarter of 2008, issuers sent 119 million premium card offers. Overall during the quarter, credit card mailings were down 72%, to 419 million from 1.5 billion during last year's second quarter. "For nearly two years now we've seen credit card acquisitions continue to decline," Andrew Davidson, Mintel senior vice president, tells CardLine. "So what we are noticing now is that the decline has slowed, but we are seeing growth in the premium card segment." During the first half of 2009, premium cards accounted for one in five, or 19%, of mail campaigns, compared with just one in 10, or 9%, during the same period last year. "Issuers are looking to improve their profitability, and premium cards offer the safest bet because they have annual fees," says Davidson. "Issuers can offer higher fees for certain benefits." Mintel cites such premium cards as Chase Sapphire, the Visa Black Card and the American Express Hilton Honors Surpass Card as examples of issuers' efforts to aim for the wealthier consumer segment and of cards that offer extra benefits for higher annual fees. The boost in premium card offers is positive for the industry because it shows that issuers are starting to focus on profitability, Davidson says. "This indicates that issuers are starting to branch out and extend offers starting with the most profitable segment," he says. Mintel expects issuers' efforts to offer credit eventually to trickle down to mainstream consumers.
