Credit Cardholder Survey Reveals Early Changes from the Pandemic’s Onset

Share Article

Mercator Advisory Group’s survey documents the changing patterns of U.S. credit cardholders as they grapple with the realities of the pandemic.

One of the exhibits in this report.

These survey results are a foreshadowing of changes expected to play out more dramatically in 2021. Shifts in card usage, and notably credit card rewards, may have major strategic impacts down the road for card issuers.

Mercator Advisory Group’s most recent report, 2020 North American PaymentsInsights—Credit Cards: Navigating Rough Waters, documents the changing patterns of U.S. credit cardholders as they grappled with the new realities of the pandemic, and their shifting choices in the use of payment cards. The survey of 3,000 U.S. adults (June 2020) represents a continuation of a series of consumer and business surveys conducted annually by Mercator Advisory Group since 2009.

While credit cards remain the preferred payment card both in-store and online, the number of households reporting they use a general purpose network branded credit card was down in 2020. Non-revolving charge cards and debit cards are the primary beneficiaries when consumers reduce their use of credit cards.

“These survey results are a foreshadowing of changes expected to play out more dramatically in 2021,” stated Theodore Iacobuzio, Vice President of Research at Mercator Advisory Group. “Shifts in card usage, and notably credit card rewards, may have major strategic impacts down the road for card issuers.”

Highlights of this report include:

  • Credit cards are preferred for the growing volume of e-commerce transactions, and cardholders often designate a specific card for online use.
  • Cashback rewards, still the leading reward type in terms of cardholder participation, experienced a significant decline in cardholders stated participation and preference. No other reward type yet stands out as a clear beneficiary of this decline. The perceived dollar value of rewards realized through credit card accounts also declined in 2020.
  • The interest in use of card controls-- smartphone-based apps used to turn a card on or off, limit transaction size, notify cardholders of transactions, and other security features—was down significantly in 2020. Fewer than one in four credit cardholders with a smartphone used such an app.
  • The use of co-branded credit cards sponsored by not-for-profit organizations has increased over the last two years, while cards sponsored by commercial entities remained high, but stable.

This report is 58 pages long and contains 34 exhibits. One of the exhibits in this report:

Subscribers to Mercator Advisory Group North American PaymentsInsights Survey Series have access to this report as well as the upcoming research for the year ahead, presentations, analyst access and other membership benefits.

Please visit us online at http://www.mercatoradvisorygroup.com.

For more information and media inquiries, please call Mercator Advisory Group's main line: 1-781-419-1700 or send email to media@mercatoradvisorgroup.com.

For free industry news, opinions, research, company information, and more, visit us at http://www.PaymentsJournal.com.

Follow us on Twitter @ http://twitter.com/MercatorAdvisor.

About Mercator Advisory Group
Mercator Advisory Group is the leading independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world's largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors. Mercator Advisory Group is also the publisher of the online payments and banking news and information portal PaymentsJournal.com.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Karen Yetter
@MercatorAdvisor
Follow >
Visit website