New research shows eight out of ten U.S. card holders believe co-branded cards offer as much or more value than bank-issued rewards cards, but they want more … much more.
According to Oliver Wyman and its annual Transport & Logistics Journal, co-branded travel cards may not be rewarding enough.
Other findings show consumers are willing to switch when the grass appears greener: 40% change their primary credit card at least every two years.
Half of consumers leave for better rewards. Even customers who carry a monthly balance are more likely to switch because of rewards rather than a lower interest rate (11%).
The personalization trend can be most seen among Millennials, the generation aged 18-34. In fact, this group favored options for individual card design as the highest of any other age groups.
Today, only a third of credit card-carrying Millennials have a cobranded travel card, compared to half of credit card users who are their parents’ age. These tech-savvy consumers also value different features and use credit cards in different ways than older generations.
• Millennials expect credit card payment capabilities and other features to be wholly integrated with their digital lives and rank these features significantly higher than other age groups.
• Millennials are twice as likely to use mobile wallet applications than the average cardholder and more than three times as likely as Baby Boomers (52 percent vs 16 percent).
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