Comprehensive data compiled from Federal Reserve research, consumer financial studies, and ecommerce platform analytics on store credit adoption, usage patterns, and retention impact
Key Takeaways
- Store credit remains a massive market despite shifting preferences - The U.S. retail credit sector totals $130 billion serving 85 million consumers, yet store card ownership dropped from 60% in 2015 to just 38% in 2024, signaling urgent need for modern retention alternatives like integrated loyalty programs
- Traditional store cards carry unsustainable costs - With 90% of retail cards charging APRs above 30% and annual attrition rates hitting 19%, traditional credit programs struggle with retention while modern store credit alternatives through platforms like Rivo Loyalty offer frictionless redemption directly in Shopify checkout
- Consumer preferences favor flexible credit over traditional cards - 53% of consumers now prefer Buy Now Pay Later options over store credit cards, up from 42% in 2024, while 73% of parents choose BNPL payment methods, indicating strong demand for flexible credit solutions without high-interest burdens
- Store credit drives measurable business impact - Credit card programs contribute 8% of gross profits and 36% of net income for major retailers, with one retailer reporting 25% of total sales transacted on private label cards, demonstrating financial importance of credit-based retention
- Implementation complexity creates competitive differentiation - Unified commerce platforms show 22% better total cost of ownership and 8.9% equivalent sales uplift annually, making integrated store credit solutions within comprehensive retention platforms deliver superior merchant and customer experiences
- Data quality determines program success - Poor data costs organizations $12.9 million annually, while platforms offering real-time customer account integration and automated credit management reduce operational overhead and improve redemption tracking accuracy
- Demographic targeting reveals optimization opportunities - Generation X carries the highest average retail balance at $1,528, while millennials show 79% preference for store cards as their most-used credit option, enabling targeted credit strategies by customer segment
- Security and fraud prevention remain critical - With charge-off rates for private label cards hovering around 10% and delinquency at 4.5%, robust fraud prevention mechanisms integrated into store credit platforms protect both merchants and customers from systematic abuse
Store Credit Market Overview and Growth
1. The U.S. retail credit sector represents $130 billion in total market size
The retail credit market totaled $130 billion as of Q4 2023, representing over 2.5% of total outstanding consumer credit across all categories. This substantial market demonstrates the financial significance of credit-based customer retention strategies for retailers and ecommerce brands. Modern platforms integrating store credit directly into checkout experiences can capture this demand without the complexity of traditional credit card partnerships. Source: FEDS Estimating Retail Credit
2. Nearly 85 million Americans maintain active retail credit accounts
Approximately one-third of the entire U.S. adult population with credit records had a retail credit account as of Q4 2023, totaling nearly 85 million individuals. This widespread adoption indicates consumer familiarity with credit-based purchasing and retention programs, creating favorable conditions for store credit implementations through modern loyalty platforms. The massive user base demonstrates proven consumer acceptance of credit as a retention mechanism. Source: FEDS Estimating Retail Credit
3. Retail credit consists of nearly 150 million total accounts
The retail credit sector maintained nearly 150 million accounts as of Q4 2023, indicating many consumers hold multiple store credit relationships across different retailers. This multi-account behavior suggests consumers segment their purchasing and credit usage by brand, creating opportunities for ecommerce merchants to establish dedicated credit relationships through integrated loyalty programs. Account proliferation demonstrates the competitive advantage of offering convenient credit options. Source: FEDS Estimating Retail Credit
4. Private label store cards generated $218.85 billion in annual purchase volume
Private label store credit products facilitated $218.85 billion in purchase volume during 2022, demonstrating the massive transaction flow these programs enable. This substantial GMV highlights the revenue potential for brands implementing effective credit-based retention strategies. Modern platforms like Rivo Loyalty enable merchants to capture similar benefits through store credit redemption integrated directly into Shopify checkout without traditional credit card program complexity. Source: CFPB Research Report
5. Consumers currently owe over $63 billion on store credit products
Outstanding private label store credit balances total over $63 billion, representing approximately 5.7% of overall credit card balances across all categories. This substantial debt load demonstrates sustained consumer engagement with store credit programs and the long-term relationship value these programs create. The persistent balances indicate credit programs drive ongoing customer connections beyond individual transactions. Source: CFPB Research Report
6. Total retail credit card debt increased 6.7% year-over-year
Retail credit card debt grew from $118.9 billion in 2022 to $126.9 billion in 2023, representing 6.7% annual growth. This expansion outpaced general economic growth, indicating increased consumer reliance on store credit programs. The growth trajectory demonstrates sustained demand for credit-based purchasing options that modern ecommerce platforms can satisfy through integrated store credit solutions. Source: Experian Retail Credit Card
7. Over half of top 100 retailers offer retail credit programs
Research shows 54% of the top 100 retailers by sales revenue offer some type of retail store credit card as of 2024, demonstrating industry-wide recognition of credit programs as competitive retention tools. This widespread adoption by market leaders validates the strategic importance of credit-based customer engagement. Ecommerce brands can implement similar retention benefits through modern store credit platforms without traditional program overhead. Source: CFPB Research Report
Store Credit vs Traditional Credit Cards: Usage Patterns
8. The median balance per retail credit account stands at $194
Retail credit accounts carry a median balance of $194, substantially lower than general purpose credit cards. This moderate balance level makes store credit manageable for most consumers while providing meaningful purchasing power. The accessible balance range suits typical ecommerce transaction values, making store credit particularly effective for DTC brands with moderate average order values. Source: FEDS Estimating Retail Credit
9. Average retail card balance reached $1,188 in 2023
The average retail card balance grew 7.1% in 2023 to reach $1,188, indicating increasing consumer utilization of store credit programs. This growth reflects both rising transaction values and sustained engagement with credit-based purchasing. For ecommerce brands, this demonstrates consumer willingness to maintain meaningful store credit relationships when programs deliver value. Source: Experian Retail Credit Card
10. The median monthly payment on retail credit accounts is $29
Consumers make median monthly payments of approximately $29 on retail credit accounts, representing manageable payment obligations that support sustained program participation. This accessible payment level enables ongoing customer engagement without financial strain. Modern store credit programs can offer similar flexibility through platforms that integrate seamlessly with customer account management systems. Source: FEDS Estimating Retail Credit
11. Retail credit is more than 90% revolving in nature
Over 90% of retail credit operates on a revolving basis rather than installment payments, indicating consumers value the flexibility to carry balances across billing cycles. This revolving preference distinguishes store credit from fixed payment plans, offering consumers greater control over payment timing. Platforms offering flexible redemption options align with this established consumer preference. Source: FEDS Estimating Retail Credit
12. More than 60% of retail credit balances belong to nonprime borrowers
Consumers with credit scores below 720 hold over 60% of retail credit balances, demonstrating these programs serve broader consumer segments than traditional credit products. This accessibility makes store credit valuable for brands targeting diverse customer bases. Modern store credit implementations can maintain inclusive access while implementing appropriate fraud prevention measures. Source: FEDS Estimating Retail Credit
13. The median credit score for retail credit borrowers is 742
Despite serving nonprime consumers, the median Equifax Risk Score for retail credit borrowers reaches 742, indicating programs attract creditworthy consumers alongside those with challenged credit. This balanced risk profile demonstrates store credit programs can serve diverse customer segments effectively. Proper implementation enables inclusive access while maintaining program sustainability. Source: FEDS Estimating Retail Credit
14. 90% of retail cards carry APRs exceeding 30%
Research shows 90% of retail cards reported maximum APRs above 30%, compared to only 38% of non-retail general purpose cards. This high-cost structure creates consumer dissatisfaction and explains accelerating preference shifts toward alternative credit options. Modern store credit programs through loyalty platforms can provide credit benefits without interest charges, improving customer experience while driving retention. Source: CFPB Research Report
15. Average private label APR reached 32.66% in December 2024
The average private label APR climbed to 32.66% in December 2024, representing a significant increase from 27.7% in 2022. This rising cost burden accelerates consumer migration toward zero-interest alternatives like Buy Now Pay Later and store credit programs. Brands implementing modern store credit solutions can differentiate by eliminating interest charges entirely. Source: CFPB Research Report
16. Store card APRs exceed general credit cards by 6+ percentage points
The average APR for new store credit card offers was 30.58% in 2025, more than 6 percentage points higher than the 24.19% average for all new credit card offers. This substantial cost premium diminishes store card value propositions compared to alternatives. Ecommerce brands can eliminate this disadvantage through interest-free store credit implementations integrated with loyalty programs. Source: LendingTree Store Card Report
Customer Retention Impact of Store Credit Programs
17. Store card attrition averages 19% annually
Average annual attrition on private label cards reaches 19%, representing 10 percentage points higher churn than the 9% rate for general purpose cards. This elevated attrition indicates retention challenges with traditional store credit programs. Modern implementations focusing on frictionless redemption and integrated customer experiences can improve these retention metrics substantially. Source: CFPB Research Report
18. Private label account volume declined 36% since 2018
The number of private label accounts fell from 253 million in 2018 to 161 million in 2024, representing a 36% decline in just six years. This dramatic contraction reflects consumer dissatisfaction with traditional store credit programs and preference shifts toward alternative payment methods. The decline creates opportunities for brands implementing modern, consumer-friendly store credit solutions. Source: CFPB Research Report
19. Store credit cards represent 25% of all credit card accounts
Despite declining popularity, store credit cards still make up one in four (25%) of all credit card accounts in the U.S., demonstrating the persistent role of retail credit in consumer financial lives. This substantial market share indicates ongoing consumer acceptance of store-specific credit products. Brands capturing this acceptance through modern implementations can drive meaningful retention benefits. Source: CFPB Research Report
20. 54% of private label cardholders carry revolving balances
The revolve rate (share of active accounts carrying balances) rose to 54% for private label cards in 2023, up from 52% in 2022. This increasing revolving behavior indicates sustained engagement with store credit programs despite preference shifts. Consumers maintaining balances demonstrate ongoing purchasing intent that brands can capture through strategic credit program design. Source: CFPB Research Report
21. 17% of store cardholders pay only minimum amounts due
Research shows 17% of private label cardholders pay only the minimum due each month, compared to 13% for general purpose cards. This payment pattern indicates store card users experience greater financial strain or prefer extended payment flexibility. Understanding this behavior enables brands to design credit programs balancing customer needs with program sustainability. Source: CFPB Research Report
22. Store card approval rates reach 50%
Store card approval rates average 50%, six percentage points higher than the 44% approval rate for general purpose cards. This higher approval demonstrates store credit programs serve broader consumer segments through less restrictive underwriting. Modern store credit implementations can maintain inclusive access through platform-based fraud prevention rather than traditional credit scoring. Source: CFPB Research Report
23. Nonprime consumers see 20-point higher store card approval rates
For consumers with credit scores between 620 and 720, approval rates on retail cards run roughly 20 percentage points higher than on general purpose cards. This approval advantage makes store credit particularly valuable for brands serving diverse customer bases. Accessible credit options drive customer loyalty across broader demographic segments than traditional payment methods. Source: CFPB Research Report
24. Loyalty programs are a major factor in consumer retail choices
Research shows that loyalty programs are a major factor in how consumers choose and stay with retailers, demonstrating the retention power of structured reward programs. Store credit functions as a powerful loyalty program component, creating financial incentives for repeat purchasing. Comprehensive loyalty platforms integrating store credit with points, VIP tiers, and referral programs maximize this retention impact. Source: LendingTree Store Card Report
Store Credit Integration with Loyalty Programs
25. Credit card revenue represents 8% of retailer gross profits
Credit card programs contributed an average of 8% of gross profits for major retailers from 2018 through 2023, demonstrating substantial financial impact beyond direct transaction revenue. This profit contribution validates the strategic importance of credit-based retention programs. Ecommerce brands can capture similar benefits through modern store credit implementations without traditional program overhead. Source: CFPB Research Report
26. Card revenue accounts for 36% of retailer net income
The contribution of card revenue as a percent of net income reached approximately 36% for major retailers, indicating credit programs generate disproportionate profitability relative to their revenue share. This profit concentration demonstrates the high-margin nature of credit-based retention strategies. Modern platforms enable ecommerce brands to capture similar economics through integrated store credit solutions. Source: CFPB Research Report
27. Card revenue represents 1.5% of total retailer revenue
Card revenue represented about 1.5% of total retailer revenue in the post-pandemic period from 2021 to 2023, providing a benchmark for store credit program revenue contribution. While seemingly modest, this revenue stream requires minimal incremental operational investment when implemented through integrated platforms. The margin contribution significantly exceeds the revenue percentage. Source: CFPB Research Report
28. One major retailer transacts 25% of sales on private label cards
One major retailer reported that one-quarter (25%) of their total sales were transacted on their private label cards, demonstrating the transaction volume potential of effective store credit programs. This substantial share indicates store credit can become a primary payment method when programs deliver compelling value. Achieving similar penetration requires seamless checkout integration and strong value propositions. Source: CFPB Research Report
29. 73 of the top 100 retailers offer free loyalty programs
Research shows 73 of the top 100 retailers offer some version of a free loyalty program alongside store credit options, demonstrating the complementary nature of these retention strategies. This widespread dual implementation validates the strategic value of integrating credit within broader loyalty frameworks. Modern platforms like Rivo enable this integration natively. Source: CFPB Research Report
30. Unified commerce platforms deliver 22% better total cost of ownership
Retailers using unified commerce platforms like Shopify experience 22% better total cost of ownership compared to fragmented technology stacks. This efficiency advantage applies directly to store credit implementations, where integrated platforms eliminate the complexity and cost of standalone credit card programs. Consolidation drives both operational efficiency and improved customer experiences. Source: Shopify Store Credit
31. Unified commerce drives 8.9% equivalent sales uplift annually
Retailers using unified commerce experience an 8.9% equivalent uplift in sales annually on average, demonstrating the revenue impact of integrated technology platforms. This sales benefit extends to store credit programs when implemented within comprehensive retention platforms that connect credit with loyalty, referrals, and customer accounts. Integration amplifies individual feature effectiveness. Source: Shopify Store Credit
Consumer Preferences: Store Credit vs Buy Now Pay Later
32. 53% of consumers prefer BNPL over store credit cards
Research shows 53% of Americans prefer Buy Now Pay Later (BNPL) over store credit cards as a payment option in 2025, up from 42% in 2024. This 26% year-over-year increase demonstrates rapid consumer preference shifts toward flexible, zero-interest payment alternatives. The trend validates interest-free store credit implementations that provide flexibility without cost burdens. Source: LendingTree Store Card Report
33. 70% of millennials prefer BNPL over store cards
Among millennials specifically, 70% prefer Buy Now Pay Later options over store credit cards, indicating strongest preference shifts among younger demographics. This generation represents future purchasing power, making their preferences particularly important for long-term retention strategies. Brands targeting millennials benefit from flexible credit options aligned with their payment preferences. Source: LendingTree Store Card Report
34. 73% of parents prefer BNPL payment options
Parents of young children show 73% preference for BNPL as a payment option over store credit cards, reflecting budget-conscious purchasing behavior and desire for payment flexibility. This demographic's preference indicates family-oriented brands benefit particularly from flexible credit alternatives to traditional high-interest store cards. Source: LendingTree Store Card Report
35. BNPL users projected to exceed 900 million globally by 2027
Buy Now Pay Later users will reach over 900 million globally by 2027, representing massive growth in flexible payment adoption. This projection indicates sustained consumer demand for interest-free credit alternatives that divide payments without traditional credit card costs. The growth trajectory validates investment in flexible credit options integrated with ecommerce platforms. Source: Shopify Store Credit
36. 77% of consumers have heard of BNPL plans
Most consumers (77%) have heard of buy now, pay later plans, with roughly half remembering being offered it in the past month. This high awareness demonstrates BNPL has achieved mainstream recognition, setting consumer expectations for flexible payment options. Brands must offer competitive credit alternatives to maintain payment flexibility parity. Source: Experian Retail Credit Card
37. Average BNPL loan size totals only $135
The average buy now, pay later loan size was only $135 according to a 2022 CFPB study, indicating these programs serve smaller transactions than traditional credit. This moderate transaction size aligns well with typical ecommerce order values, making flexible payment options relevant for most DTC brands regardless of average order value. Source: Experian Retail Credit Card
38. Consumers carry approximately $15 billion in BNPL debt
Consumers collectively carry about $15 billion in buy now, pay later debt, representing substantial but manageable obligations compared to traditional credit card debt. This moderate debt level indicates BNPL usage remains controlled rather than reaching problematic levels, validating the sustainability of flexible payment approaches. Source: Experian Retail Credit Card
39. 20%+ of consumers with poor credit use BNPL
At least 20% of consumers with a FICO Score of 649 or lower used buy now, pay later plans in the past month, versus 9.3% overall. This elevated usage among challenged credit consumers demonstrates BNPL serves those underserved by traditional credit products. Modern store credit programs can capture this underserved segment through inclusive implementation. Source: Experian Retail Credit Card
Delinquency and Risk Metrics
40. Retail credit delinquency rates reach 4.5%
The delinquency rate on retail credit accounts stands at 4.5% for accounts at least 30 days past due, indicating modest default risk compared to other credit categories. This manageable delinquency level demonstrates store credit programs can maintain reasonable credit quality. Proper implementation with fraud prevention maintains sustainability while serving diverse customers. Source: FEDS Estimating Retail Credit
41. Private label charge-off rates hover around 10%
The annualized charge-off rate for private label cards is nearly double the rate on general purpose cards, hovering around 10%. This elevated default rate reflects the broader credit segments served by store credit programs. Understanding this risk profile enables appropriate program design balancing accessibility with sustainability. Fraud prevention tools integrated into modern platforms help manage these risks effectively. Source: CFPB Research Report
Frequently Asked Questions
What is the difference between traditional store credit cards and modern store credit programs?
Traditional store credit cards are high-interest credit products (averaging 30.58% APR) issued by banks with 7+ year partnership agreements, while modern store credit programs integrate directly into ecommerce platforms like Shopify through loyalty apps, offering interest-free credit funded by merchants. Modern implementations eliminate partnership complexity, reduce customer costs, and integrate seamlessly with checkout experiences.
Why are consumers shifting from store credit cards to Buy Now Pay Later?
Consumer preference for BNPL jumped from 42% to 53% in one year due to zero-interest structures, flexible payment terms, and simpler approval processes. With 90% of store cards charging 30%+ APRs and generating 19% annual attrition, consumers increasingly favor payment flexibility without interest burdens. This shift validates interest-free store credit approaches.
How much revenue impact do store credit programs create for retailers?
Store credit programs contribute 8% of gross profits and 36% of net income for major retailers, with some reporting 25% of total sales transacted on store cards. These programs generated $218.85 billion in purchase volume in 2022 despite serving only 38% of consumers, demonstrating substantial revenue potential when programs achieve meaningful adoption.
What are the key retention benefits of implementing store credit?
Store credit creates financial incentives for repeat purchasing, increases average order values through credit-plus-cash transactions, and improves customer lifetime value by establishing ongoing financial relationships. When integrated with comprehensive loyalty programs, store credit contributes to the 3.1x repeat purchase rate improvements and +4% revenue attribution that modern retention platforms deliver.
How do unified commerce platforms improve store credit implementation?
Unified platforms like Shopify deliver 22% better total cost of ownership and 8.9% equivalent sales uplift annually by consolidating store credit, loyalty, and checkout into single integrated experiences. This eliminates the traditional complexity of 7+ year banking partnerships and multiple vendor integrations, while enabling seamless redemption directly in checkout as demonstrated by Rivo Loyalty's payment method integration.
What fraud prevention measures are essential for store credit programs?
With charge-off rates around 10% and delinquency at 4.5%, effective fraud prevention requires IP address monitoring, self-credit blocking, minimum cart requirements, and order fulfillment verification before credit distribution. Modern referral and loyalty platforms include multiple layers of built-in fraud prevention (IP monitoring, self-referral blocking, new-customer validation, minimum cart rules, and more) that apply directly to store credit implementations, protecting merchants without creating customer friction.
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