Of cardholders, 38% describe themselves as active participants in reward programs, 27% are passive participants and 35% are inactive or non-participants.

Boston, MA, March 31, 2008 – A new report from Aite Group, LLC, based on an online survey of 500 consumers conducted in January 2008, provides an overview of consumer participation in financial institutions' and merchants' rewards programs, their attitudes toward rewards and their level of interest in traditional and emerging reward programs.

Rewards are an increasingly critical aspect of how financial institutions and merchants compete for consumer business. While the majority of cardholders (62%) are either non-participants, inactive or, at best, passive participants, rewards programs shape the behaviors of a significant 38% of the U.S. population.

"Unless litigation or regulation curtails card networks' ability to set interchange, financial institutions are very much likely to remain in the driver's seat with their rewards programs in the coming years," says Gwenn Bézard, research director with Aite Group and co-author of this report. "Merchants should see the upside in this situation, and partner with financial institutions and card networks to take advantage of their analytics and marketing firepower."

This 39-page Impact Report contains 29 figures and two tables. Clients of Aite Group's Retail Banking service can download the report by clicking on the icon to the right.

Related Aite Group Research:

• Who Wants a Decoupled Debit Card?
• The Future of Card Networks: Gauging Battle-Readiness for a Post-Visa IPO World
• The Next Big Thing in Cards: Co-Branded Decoupled Debit Cards
• Loyalty & Rewards: A Market Overview

To purchase this report or
for additional information,
please contact:
Aite Group Sales
Tel: +1.617.338.6050
sales@aitegroup.com