Cash-Back Rewards Entice Nearly Half of Cardholders Who Have Yet to Embrace Card-Linked Offers

During the 2023 holiday shopping season, card-linked offers gained popularity as consumers sought ways to manage their spending amidst rising prices. In fact, nearly two-thirds of cardholders incorporated card-linked offers into their holiday spending, with 27% stating their strong likelihood to continue doing so.

This is according to findings detailed in “Leveraging Item-Level Receipt Data: How Merchants Engaged Holiday Shoppers With Card-Linked Offers,” a PYMNTS Intelligence and Banyan collaboration. The study draws on insights from a survey of over 2,000 consumers to examine how merchants and card issuers can use item-level receipt data to deliver personalized and pertinent card-linked offers that boost consumer engagement and appeal to new customers. 

The report highlights that interest in card-linked offers was particularly high among top spenders, with 40% of consumers with children and 39% of millennials expressing a strong likelihood of using them during the holiday season.

The utilization patterns during the 2023 holiday season also suggest that consumers were primarily motivated by savings and convenience in their use of card-linked offers. Specifically, rewards were the most frequently employed card-linked offers, with 20% of cardholders using them at least once, and 48% using them overall.


Additionally, 11% favored rewards points as their most frequently used option, with 33% utilizing them at least once. Meanwhile, 16% of cardholders relied on free shipping most often during the holiday season, and 38% used card-linked offers for free shipping at least once.

The consistent preference for rewards and free shipping offers among consumers highlights specific areas that merchants and card issuers should focus on when seeking to enhance consumer expenditure through tailored card-linked offers, the report noted.

While awareness of card-linked offers is on the rise, a notable share of consumers cites unfamiliarity as a deterrent to their adoption. Nevertheless, among those who haven’t yet embraced card-linked offers, almost half express that good cash-back rewards could prompt them to reconsider. This underscores an opportunity for merchants to gain a competitive edge in the market by enhancing offer relevance through personalized strategies.

In summary, the impact that card-linked offers can have on consumer engagement and the acquisition of new customers cannot be overstated. Against this backdrop, leveraging item-level receipt data becomes pivotal, providing merchants with a dynamic tool to craft offers finely tuned to individual preferences and needs.

This approach not only opens avenues for enhancing consumer spending but also enables merchants to meet the expectations of their consumer base, ultimately driving sustained growth and success in the competitive market.