The game has changed! Loyalty is no longer just about rewards—it’s about relationships. Businesses across industries are coming to the same conclusion as we transition further into 2025; they need to go beyond traditional loyalty programs to capture and keep the attention of modern consumers. With 39% of credit cardholders discontinuing use of at least one card in the past year, the battle for top-of-wallet status has never been more intense.
Our recent webinar, "The Science of Loyalty: How Human Behavior Powers Engagement and Revenue," explored the strategies that drive loyalty and how major brands are changing the narrative in 2025. Backed by findings from our 2024 State of Credit Report, we discussed the trends shaping consumer behavior, the power of personalization, and the innovative tools needed to stay ahead of the competition. Here are some of the key insights from our discussion.
The shrinking wallet: why loyalty matters more than ever
Our data shows that credit cardholders are consolidating their options, reducing their wallets to as few cards as possible. This shift is driven by rising interest rates, better rewards elsewhere, and a growing preference for simplicity. For businesses, this means one main thing: you need a way to win “top-of-wallet” status and work to keep it.
Compounding this challenge, over 83% of consumers with multiple credit cards say they have a preferred card that they use most often. Once a card secures this coveted spot, it captures the lion’s share of spending—a critical metric for any issuer looking to maintain profitability and relevance.
Even more interesting are the behaviors of younger consumers, especially those aged 18-34, who are leading the charge toward simplicity but can be swayed given the right incentives. Nearly 56% of this demographic have additional financial products with their credit card provider, from checking accounts to savings products, showing that loyalty goes hand-in-hand with integrated solutions.
The takeaway?
Winning and retaining customer loyalty requires more than just offering a great card—it demands a deep understanding of consumer behavior, innovative engagement strategies, tools to better utilize data, and seamless experiences.
Personalization as the key to engagement
Today’s consumers demand solutions that cater to their values, and the opportunity is clear: 29% of consumers plan to apply for a new credit card within the next 12 months, with younger generations (ages 18-44) leading the charge. These customers are seeking providers that understand their preferences and deliver meaningful, personalized experiences. For businesses that can get their foot in the door with a powerful credit card program, the data shows it’s a lot easier to funnel them into your ecosystem over time.
However, when it comes to that first interaction, the stakes are incredibly high - when asked about application journeys, 40% of consumers said they would abandon the process if redirected outside a brand’s website, highlighting the importance of seamless and branded experiences. This should be a sign to businesses to think through the structure of their customer journey, the application process being the first, and potentially most important, touchpoint.
Additionally, personalization has the power to open new markets. 42% of consumers expressed interest in flex credential cards that combine debit, credit, and BNPL capabilities, with interest spiking among gig economy workers and younger consumers aged 25-44. This presents an opportunity to innovate with products that align with evolving financial needs.
From designing intuitive onboarding experiences to crafting rewards and tools that reflect individual habits, you’ll discover how to create loyalty that’s not just earned - personalization appears to be the key to standing out.
Gamification: turning loyalty programs into winning experiences
When it comes to loyalty, engagement should be your key metric to use for pulse-checks. Gamification has emerged as a powerful strategy to engage users and keep your card top of mind. In fact, 35% of consumers say the ability to earn rewards immediately after a purchase is a "must-have" feature in a loyalty program.
Gamification works because it taps into core human psychology: the thrill of winning, the motivation to achieve, and the fear of missing out. By incorporating elements like tiered rewards, challenges, and progress tracking, businesses can create a sense of excitement and achievement that keeps customers coming back.
Take, for example, loss aversion—a concept shared during the webinar. Consumers dislike missing out on rewards more than they enjoy earning them. Highlighting missed opportunities, such as unclaimed rewards or suboptimal spending decisions, can nudge customers toward better financial habits while keeping your card front and center. This kind of real-time feedback not only builds loyalty but also deepens trust.
The beauty of gamification lies in its flexibility. Whether it’s offering bonus points for specific actions, creating leaderboard-style challenges, or providing instant gratification through real-time rewards, there are endless ways to make loyalty programs more engaging. The key is aligning these efforts with the needs and desires of your audience—transforming routine transactions into rewarding experiences that foster long-term loyalty and engagement.
Leveraging program management solutions
Launching and managing a card program is complex—there’s a lot that goes into it after all. Having a proper approach to Program Management simplifies the process with expert guidance and support:
- Faster Time to Market: Streamlined program setup enables faster launches without sacrificing quality.
- Compliance and Risk Management: A collaborative approach to proactively address applicable regulatory requirements and fraud risks, helping keep your program secure.
- Operational Support: Helping reduce internal workload by handling cardholder support, dispute management, fraud tools.
- Strategic Partnerships: Connects you with an appropriate bank partner, BIN sponsors, and networks for better economics and efficient program setup.
- Reliable Expertise: Dedicated teams optimize performance using data-driven insights, helping establish long-term success.
With Marqeta’s solutions, you gain the tools and expertise, helping to deliver a seamless, scalable card program that stands out in a competitive market.
Takeaways
As the battle for top-of-wallet status intensifies, businesses need to embrace innovative strategies like personalization, gamification, and frictionless customer experiences to win and retain loyalty.
Our on-demand webinar, "The Science of Loyalty," provides deeper insights into these trends to help your business stand out. Backed by Marqeta’s 2024 State of Credit Report, the webinar highlights the tools and strategies needed to help build loyalty that lasts.
Ready to take your card program to the next level? Explore how Marqeta’s Program Management solution can help you accelerate time to market, navigate compliance, and deliver exceptional customer experiences. Watch the webinar today and see how to transform loyalty from a challenge into an opportunity.