Popularity of credit
The credit card is one of the most popular payment methods in the world. It is known and easily understood and consumers rely on it for larger purchase amounts, with an average of $91 per purchase compared to $39 for debit. In Marqeta’s 2023 State of Credit Report, it’s clear that the credit card industry is prime for innovation as consumer expectations shift toward digital offerings, personalized rewards and seamless application processes. The report highlights the opportunities companies have to offer customized, embedded credit offerings that capture consumer adoption and loyalty.
State of US Credit
Who is using credit? Keep younger consumers in mind – they’re most likely to drive new credit card applications
- Regardless of their level of satisfaction, 31% of consumers surveyed said they plan to apply for a new credit card in the next 12 months.
- 36% US and 22% in the UK
- Highest among 26-34 year olds at 52% and 35-50 at 45%
Customers are loyal to brands, not banks – opportunities to build relationships with them
- 41% of consumers own a credit card affiliated with a brand
- 50% of US consumers vs only 24% of UK consumers
- 61% consider themselves a customer of the brand or store instead of the bank
Rewards are the biggest benefit of credit cards over other payment methods
- Rewards are the biggest benefit of credit cards over other payment methods: 49% of consumers reported it as the biggest benefit, up from 44% in 2022
- Rewards/points reign supreme in the US with 58% of respondents citing them as the biggest benefit, compared to 32% in the UK
- 42% said better rewards would get them to use another credit card more
The credit card opens the door to selling additional products to cardholders, increasing their LTV
- 51% of consumers surveyed have more than one financial product from their credit card provider; Highest among those 18-44
- Of these respondents, 61% had a credit card first, and then added additional financial products over time
Ensuring a portfolio of cards can help address consumers various needs throughout their financial journey
- Majority of credit card owners have more than one card (71%); Least likely to have more than one card at 18-24 but it steadily grows, peaking between ages 35-44
- Capturing spend early is important as 48%* of consumers get their first credit card between the ages of 18-21
- As needs change, consumers can graduate to different cards
Want to talk credit? So do we.
