Unlike previous generations who may have stuck with one or two financial institutions for decades, young consumers are more transactional in their loyalties. That’s not to say they’re fickle. On the contrary, these generational cohorts are loyal to brands that deliver on their promises. However, they have no patience for outdated experiences or lackluster perks.
With fewer cards in their wallets and a preference for their primary card, Gen Z and millennials are signaling that they want issuers to deliver real, relevant value.
The PYMNTS Intelligence report “The Credit Economy: Top-of-Wallet Credit Cards,” an i2c collaboration, reveals that 48% of credit cardholders cite rewards or discounts as the primary reason they chose the card they now use most frequently.
Among Gen Zers and millennials, this percentage is more consequential, given how heavily they lean on their top-of-wallet cards. Gen Zers use an average of 30% of their available credit on their primary card, followed by millennials at 27%.
Compare that to older generations, who spread their spending across multiple cards or lean more on debit and checking accounts. For financial institutions and FinTechs, this presents an opportunity to deliver smarter, targeted rewards to not just gain customers but, potentially, lifetime advocates.
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Gen Z and Millennials View Credit Through a Different Lens
The typical playbook for credit card marketing goes pretty much the same way: sign-up bonuses, 0% APR offers or miles for travel. However, these commoditized benefits may not resonate in the same way with younger consumers.
Gen Zers, born after 1996, grew up in the aftermath of the 2008 financial crisis. They’re digital natives who associate traditional banking with economic uncertainty. Millennials, meanwhile, entered adulthood during the Great Recession, many carrying the weight of student debt and rising living costs.
These generational experiences have shaped a different relationship with credit. Young consumers are cautious but digitally fluent, open to experimentation but resistant to friction. They prefer to consolidate spending on a single, reliable card, making that primary card the epicenter of their financial lives. As a result, they expect more from that relationship.
For this reason, the PYMNTS Intelligence report found that reward structures that are flexible, real-time and aligned with lifestyle categories — like food delivery, streaming services or ridesharing — frequently tend to win out. Gen Z doesn’t just want points; they want value that meets them where they are. If a card can consistently deliver that, it becomes more than a payment method; it becomes a default life tool.
Read the report: The Credit Economy: Top-of-Wallet Credit Cards
Winning Gen Z and millennial consumers requires more than flashy sign-up offers. It demands ongoing relevance. A one-time $200 bonus for spending $1,500 in three months may spark initial interest, but it’s the continued reinforcement of value that keeps them engaged.
Rewards play a crucial role here. When structured correctly, they function as a behavioral loop by encouraging frequent card usage, increasing spend velocity and deepening brand affinity.
Perhaps the most powerful effect of optimized rewards is their ability to serve as a gateway to deeper financial relationships. A compelling card product becomes the cornerstone of cross-selling opportunities — everything from savings accounts to personal loans to investment services.
This is particularly important with Gen Zers, many of whom are just beginning to build their financial portfolios. Millennials, many of whom are now in their peak earning years, are likewise open to bundling products if the experience is frictionless and tailored. A rewards ecosystem that links credit card activity with long-term financial wellness can be a powerful differentiator.
