How Consumers Decide What Card Is Their Top of Wallet Go-To

Credit card issuers want to know how they can win that coveted top-of-wallet spot. One powerful strategy for cementing customer loyalty is encouraging engagement with card-linked offers. Many cardholders recognize that earning and redeeming rewards is a benefit of using a credit card for everyday purchases.

Our data shows active engagement with card-linked offers is likely to boost credit card use, so long as consumers find their card-linked offers relevant to their everyday needs. The relevance of a card-linked offer boils down to its ease of access and personalization. More than 7 in 10 users say those two factors increase an offer’s relevance and appeal.

Currently, 1 in 5 cardholders redeem credit rewards at least monthly. Frequent card users, on the other hand, redeem rewards more often. These users not only redeem their rewards more often — they also actively hunt for card-linked offers more frequently. Card issuers that understand these trends can respond to customer demand and win their loyalty.

These are some of the findings explored in “Beyond Points and Perks: How Relevant Benefits Drive Cardholder Engagement,” a PYMNTS Intelligence and Banyan collaboration. This report examines consumers’ experiences with loyalty and reward programs and the impact of tailored benefits on cardholder satisfaction and loyalty. The report draws on insights from a survey of 2,826 U.S. consumers across key demographics conducted from Oct. 23, 2024, to Nov. 7, 2024.

Inside “Beyond Points and Perks: How Relevant Benefits Drive Cardholder Engagement” you’ll discover:

How card-linked reward accessibility and relevance impact redemption frequency and cardholder loyalty

The strategies needed to increase usage by simplifying benefit discovery and redemption

How Gen Z and parents outpace others in reward use

The differences in redemption preferences among proactive and passive users

Why multichannel strategies are vital for increasing engagement

Download the report: Beyond Points and Perks: How Relevant Benefits Drive Cardholder Engagement

The report includes crucial information for card issuers, revealing a direct relationship between user-friendly rewards and cardholder loyalty. Streamlining benefit discovery and redemption processes can help convert passive users into active participants.

Download the report to learn more about consumers’ experiences with credit card rewards programs.