Evolving consumer preferences have changed the credit card marketing game for banks and credit unions. Check out the article, below, for more information!
Younger consumers are decidedly more debt-averse, and more likely to prefer debit over credit cards. But that doesn’t mean that Millennials and Gen Z don’t use credit cards. Banks and credit unions just have to understand how to better position their credit card offerings, and to offer rewards that resonate the most.
Any talk about the death of credit cards is just that — talk. The reality is that credit cards are still consumers’ favorite way to pay for both online purchases and in-store items, regardless of the price of the item, although the preference differential between credit and debit decreases for lower-priced items, according to Mintel, a research firm specializing in competitive intel.
If there was any doubt that credit cards are alive and well, consider that outstanding revolving consumer credit is hovering around $1 trillion, according the U.S. Federal Reserve. The majority of this is credit card debt.
As ironic as it might sound, even PayPal is looking to reach beyond the screen to become a part of the physical wallet. PayPal introduced a Mastercard branded rewards credit card with no annual fee and 3x points for every dollar spent on gas and restaurant purchases, and 2x points for every dollar spent on PayPal or eBay. It’s one of the highest rewards rates in the industry. The only caveat? You need a PayPal account to apply (of course).