Despite rising concern surrounding credit card debt and the stress that it causes, a surprising 45% of cardholders are willing to pay higher annual fees for superior rewards and benefits, highlighting a shift towards premium offerings.
Build your business strategy from the ground up with this credit card market report. Focusing on the US market, you’ll get a review of industry performance. To provide deeper insight into the decisions and behaviors of credit card owners, this report then provides data-backed analysis based on real consumer responses. Grow your insight strategy today and proceed with confidence.
Despite rising concern surrounding credit card debt and the stress that it causes, a surprising 45% of cardholders are willing to pay higher annual fees for superior rewards and benefits, highlighting a shift towards premium offerings. Concurrent with this demand for enhanced benefits is a focus on credit building, solidifying the notion that expansion of the credit card market is occurring at the extremes.
As the industry stabilizes following a two-year period of extreme growth, issuers must contend with rising delinquency rates that pose a significant threat. Gen Z and Black consumers that were powering the expansion of the card market had severely reduced acquisition rates this year, demonstrating the uneven effects of credit tightening.
This landscape presents a dual opportunity: capitalizing on consumer interest in high-value credit products while addressing the challenges of maintaining financial health amid increasing delinquencies. As credit cards shift from a purely physical product to a multifaceted experience that is highly digital, issuers must ensure that their digital platforms keep cardholders engaged and invested in their rewards ecosystems.
This Report examines consumer attitudes and behaviors concerning credit cards, including credit card ownership rates, rewards style and redemption preferences, and motivations behind signing up for a new credit card.
This report was written by Patrick Rahlfs. Patrick joined Mintel in 2018 and has extensive experience as a custom research analyst focused on the financial services industry, specializing in presenting data trends within the credit card and banking sectors. He specializes in creating insights at the intersection of consumer behaviors and the financial services competitive landscape.
Credit card acquisition is decelerating as delinquencies grow, shifting focus to the extremes of the credit spectrum.
Patrick Rahlfs
Principal Analyst – Financial Services
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