Which Companies Are Hot? It's All in the (Credit) Cards

The holiday season can make or break a business. Small retailers who typically make a large percentage of their annual sales from Thanksgiving through New Years are undoubtedly the most vulnerable, but no company is immune to the vagaries of the busiest shopping period of the year, especially with an uncertain economy.

So, as Santa double checks his list and shoppers everywhere hunt for deals, it's fair to wonder, which companies will make the biggest splash this holiday season, and which could face a consumer backlash during the months to come? Here's how I see things through my personal finance lens.

Companies Poised to Make a Splash

American Express (NYSE:AXP) and Walmart (NYSE:WMT): Walmart has always been a big player during the holiday season, with its varied inventory and attractive Black Friday/Cyber Monday deals. In its own right, Amex has been as well by serving as the credit card of choice for affluent people with exemplary credit-someone has to buy all those bow-topped Lexus, after all (Lexus is apparently the plural of Lexus).

However, both companies are in an even better position to succeed this year, thanks to the recent launch of their joint prepaid card venture. Not only is the Bluebird Card from American Express and Walmart one of the best prepaid cards on the market, but it also serves a strategic purpose for both of the companies behind it.

The move turns Amex into a full-spectrum card issuer able to offer something of value to the roughly 34 million US households that are either unbanked or underbanked. Walmart can use the Bluebird Card to replace competitors' offerings in stores, but more importantly, it allows the company to bring the things people buy and the spending vehicles they use to buy them together under one umbrella. Doing so will inevitably lead people to spend more of their money at Walmart.

We also can't overlook the rising popularity of prepaid cards and the fact that we at Card Hub forecast a prepaid card boom in 2013.

Capital One (NYSE:COF): In 2012, we saw Capital One complete its purchase of the majority of HSBC's (NYSE:HBC) US credit card business -- a significant boon for the company, because it makes it essentially the only major player in a sizable and largely untapped market.

Most major issuers are hesitant to offer credit cards to people with average credit history, but we can expect Capital One to thrive in the space, not only because it bought its only major competitor, but also because it boasts underwriting capabilities superior to those of any company that might decide to enter the market moving forward.