To help our customers better understand the consumer credit environment in 2024, we commissioned a study of over 2,000 consumers in the U.S. and 1,000 in the U.K. for our latest edition of our annual State of Credit Report. Our findings were clear: financial services providers and brands should consider reinventing their approach to loyalty amid a shift to digital payments.
Even happy customers have their heads on a swivel for something new. 78% of consumers who are not satisfied with their cards are planning on applying for a new card—no surprise there. But look at this: of consumers that ARE SATISFIED with their cards, 72% are planning on applying for another card.
What?
It’s true, though, and other stats from our survey tell the same story. Of customers who are not planning on applying for a new credit card, 70% said they could be convinced to apply if the rewards or features were right.
There is an appetite for new credit cards among consumers. Our report breaks down both the causes of the trend and what smart card issuers can do about it.
“As even the best brands know, customer loyalty is fragile. Even among highly satisfied customers, people are always hunting for the next best thing, and the traditional methods of building loyalty haven’t caught up with the way people are using their cards today. Brands that don’t evolve to offer the highly personalized, flexible card experiences that consumers have come to expect will be left behind.”
– Todd Pollak, Chief Revenue Officer, Marqeta
So what does the Marqeta 2024 State of Credit Report say that card issuers should consider doing? The short answer is: offer dynamic rewards. Download the report now for the full story on what’s happening with the global consumer in 2024 and the options available to get them to apply for—and keep using—your credit offering.
Here are a few key takeaways to get you started.
#1) Credit cards are more popular than ever
Consumers love their credit cards. They’re easy to use, they allow payment flexibility and they deliver rewards. Checks and prepaid cards cannot compete. Check payments have gone down over the last year from 53% to 44% and prepaid has dropped from 38% to 32%.
Despite the fickle consumer, credit card issuers have a lot to celebrate this year.
#2) Consumers can be convinced to apply for new cards
As we cited earlier, 70% of consumers who had no plans of applying for a new card could be convinced to submit an application for one—if the rewards or features were good enough.
We asked them to go deeper and cite their top reward preferences. They came back to us with a list of classic credit card incentives including:
- Major points bonuses
- Cash back of $100 or more,
- 0% interest rates for 12 months
There were many other rewards that consumers put in their top three spots. These were more specific rewards that clever issuers can use to zero in on distinct customer personas. Get the full story in our report.
#3) Credit cards are a gateway to other financial services
Credit card customers are signing up for checking accounts, savings accounts, and debit cards from their credit card issuers. In fact, over 48% of global consumers have another financial product with their issuer.
But another type of credit customer is even more interested in their issuer’s financial services—60% of global users of Buy Now, Pay Later. And the number is even higher in the U.S.
#4) Credit cards provide an essential financial function
It’s not all shopping sprees and Amazon hauls. Global consumers are using their credit cards to pay for essential goods and services.
Globally, over 55% of respondents say that their credit card has helped them make ends meet over the last 12 months. The ready line of credit, 30 days of float, and the option to delay payments until their cash flow situation improves has been a lifeline to consumers struggling in the current economic climate.
Download the report for the full story on how consumers are interacting with credit this year.
#5) Credit is bigger than just a financial relationship
There are obvious financial benefits to being a consumer’s credit card issuer in the form of annual fees and interest. But the relationship goes far beyond that.
A creditor is deeply engaged with their customer. They get access to valuable shopping and payment data and have the opportunity to sell other goods and services. Most importantly, a card-issuing brand can form a positive connection with its customers—giving them the purchasing power to get what they want and need.
Read the full 2024 State of Credit Report for our complete findings and the insights you need to attract more customers this year—and to keep them actively using your offerings for years to come.
