Description

This report offers a deep dive into the US credit card market and consumer trends affecting the industry. Explore the current landscape and strategize effectively for the future with this report. Below, we summarize the key areas covered and offer select insights from the report itself.

Key Areas Covered

  • Credit card rewards earn and redemption.
  • Reasons that non-cardholders do not have a credit card.
  • Timing of most recent credit card acquisition.
  • Motivations behind recent credit card acquisition.
  • Sources (eg web search) used in credit card research by consumers.
  • Attitudes toward annual fees, credit card debt, and credit card usage.

US Credit Card Market Growth

Open credit card accounts increased by at least 1% for the ninth consecutive quarter in Q2 2023, continuing a streak of steady industry-wide growth. Despite issuer marketing pullbacks and concerns around debt, consistent demand is a positive indicator for the industry.

Consumer Use of Credit Cards

70% of US cardholders own a cash back rewards card. Maintaining its popularity over other credit card rewards, cash back proves to be perceived as having tangible value to consumers.

The biggest obstacle to credit card adoption is alternatives. Nearly half of non credit card owners cite using debit cards and cash as the main barrier to adoption. As interest rates and debt levels have risen, consumers may be inclined to use cash equivalents, especially for everyday purchases.

This report provides sweeping insight into credit card consumer behavior. Read on to discover an opportunity in the current market.

Credit Card Market Opportunity

As consumers cite using alternatives as the main barrier to credit card adoption (see point above), stakeholders can consider making a play for the everyday usage that is observed with debit cards and cash. Safety and rewards can be motivators to tap into. Moreover, card issuers can target younger consumers who default to rival payment methods, moving toward responsible daily credit card use as an effective means of appealing.

For a complete analysis of opportunities in the US credit card industry, buy the full report. You can also browse our extensive library of finance market research.

Brands Discussed

Various brands are covered within the scope of the report. Our expert reveals and analyzes key market launch activity/innovations and successful marketing/advertising strategies already deployed. Examples include TD Bank’s new “TD Clear” card replacing interest rates with predictable annual fees, Amex’s ramping up of Platinum card volume (tapping into seasonal urges to spend on travel), and more.

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Expert Analysis

Leading research analyst Patrick Rahlfs delivers in-depth analysis and commentary on the US credit card market with this report.

A focus on credit building and openness to annual fees portends expansion at both extremes of the credit card product spectrum.

Patrick Rahlfs, Senior Research Analyst

 

Patrick Rahlfs
Senior Research Analyst

Table of Contents

    • Key issues covered in this Report
  1. Executive Summary

    • Consumer trends: key takeaways
    • Graph 1: motivation for most recent credit card, 2023
  2. Consumer Insights

    • The credit cards consumer: fast facts
    • Rewards earn
    • Graph 2: credit card rewards earn, 2023
    • Graph 3: travel rewards earn, by age and gender, 2023
    • Graph 4: cash and travel rewards earn, by household income, 2023
    • Graph 5: rewards points earn, by generation, 2023
    • Rewards redemption
    • Graph 6: credit card rewards redemption, 2023
    • Graph 7: credit card rewards redemption, by generation, 2023
    • Graph 8: credit card rewards redemption, by credit card rewards earn, 2023
    • Graph 9: credit card rewards redemption, by race and Hispanic origin, 2023
    • Graph 10: credit card rewards redemption, by household investable assets, 2023
    • Reasons to not have a credit card
    • Graph 11: reasons to not own a credit card, 2023
    • Graph 12: reasons to not own a credit card, by age, 2023
    • Graph 13: rewards points earn, by household income, 2023
    • Most recent credit card
    • Graph 14: timing of most recent credit card opening, 2023
    • Graph 15: credit card openings within the past year, 2021-23
    • Graph 16: timing of most recent credit card opening, by self-reported credit score, 2023
    • Graph 17: timing of most recent credit card opening, by race and Hispanic origin, 2023
    • Graph 18: timing of most recent credit card opening, by generation, 2023
    • Motivation to open credit card
    • Graph 19: motivation for most recent credit card, 2023
    • Graph 20: motivations for most recent credit card, by gender, 2023
    • Graph 21: motivations for most recent credit card, by gender and generation, 2023
    • Graph 22: motivation for most recent credit card, by race and Hispanic origin, 2023
    • Graph 23: motivations for most recent credit card, by number of credit cards owned, 2023
    • Graph 24: credit card motivations, by timing of most recent credit card, 2023
    • Sources of credit card research
    • Graph 25: sources used in most recent credit card signup, 2023
    • Graph 26: sources used in most recent credit card signup, by gender, 2023
    • Graph 27: [no title]
    • Graph 28: sources used in most recent credit card signup, by number of credit cards owned, 2023
    • Attitudes toward credit cards
    • Graph 29: openness to annual fees, by year, 2020-23
    • Graph 30: attitudes toward annual fees, by generation, 2023
    • Graph 31: attitudes toward annual fees, by generations, 2023
    • Graph 32: credit card card ownership and preferred usage, by generation, 2023
    • Graph 33: preference to use credit cards whenever possible, by household income, 2023
    • Graph 34: issuer-supported financial wellness, by age, 2023
  3. Competitive Strategies

    • Launch activity and innovation
    • Marketing and advertising
    • Graph 35: American Express Platinum direct mail volume, 2022-23
    • Opportunities
  4. The Market

    • Market context
    • Market drivers
    • Graph 36: average APR range in direct mail credit card offers, 2022-23
    • Graph 37: cross-channel spend, credit card industry, 2021-23
    • Graph 38: multi-card usage, 2022-23
    • Market size
    • Graph 39: quarterly percentage growth in open credit card accounts, Q2 2016-Q2 2023
    • Graph 40: total credit card debt balance, Q1 2017-Q2 2023
    • Graph 41: new delinquent credit card balances, Q1 2016-Q2 2023
  5. Appendix

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our tables of data are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

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Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Also, our reports come in PDF, Powerpoint, Word and Excel Databook formats.

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