A new report has calculated that rewards payment cards accounted for 77% of credit card volume in 2005, compared to just 40% in 2001. The research found that credit card spend on rewards card is growing at a CAGR of 31%, compared to 12% for non-reward cards. The white paper by FischerJordan says that basic rewards offerings are becoming a market necessity; no longer a competitive advantage, but instead a commodity. The form says it is clear that program cost containment coupled with commoditization will spur a change in program substance and management. Reengineering will give way to a revision of traditional program economics, including a change in program structure and management. Coalition programs, white labeling, and association rewards will provide the models of industry externalization. The external result of these changes will be that the largest loyalty programs will emerge bigger, permeating multiple industries; while internally, program value will be unlocked, turning a cost center into a profit generating activity.