Credit cards are more than just a payment method - they’re a window into consumer behavior. Since 2017, credit card adoption has continued to grow in Europe (+4%) and America (+3%), and ownership now sits at 66% and 76% respectively. But here’s the flip side - around 2 in 5 consumers still don’t have a credit card, with 15% of them using alternative payment methods like BNPL (Buy Now Pay Later) services weekly.
Understanding these credit card trends isn’t just important for banks. Marketers, retailers, and ecommerce brands can all tap into credit card statistics and data to uncover spending habits, consumer priorities, and shifting payment preferences. The result? Smarter strategies for audience engagement, retention, and growth.
In this blog, we’ll explore key credit card trends, the implications for businesses, and how AI tools can help make sense of this complex landscape, faster.
Credit card usage gives us a quick snapshot of consumer priorities. For example, 65% of credit cardholders bought shampoo in the last month, underlining the steady demand for personal care items. Meanwhile, snack foods dominate online food shopping, with 21% of cardholders buying snacks exclusively online and 73% splitting purchases between online and in-store.
Mastercard remains a key player, used by 29% of credit cardholders last month. Insights like this help businesses distinguish between essential spending and discretionary spending, informing product offerings and marketing strategy tactics.
Credit cards play a pivotal role in online shopping. Globally, 17% of internet users prefer the ability to spread payments over time without added interest when shopping online. This poses a huge opportunity for financial services to offer flexible repayment options.
As credit card trends go, 31% of cardholders took 1-2 international vacations in the past year, while 35% are more likely than average to have taken 3-4 business trips abroad. And 55% enjoy beach or resort vacations, highlighting opportunities for travel brands to refine campaigns and products.
Contactless payments are now the norm, with 21% of internet users using Google Pay last month. While PayPal remains the frontrunner in digital payments, Apple Pay is also gaining traction, with 239.93 million active users in the last month.
This shift is particularly relevant for retail and ecommerce. Contactless payments offer convenience and speed, reducing checkout friction and improving customer satisfaction. For financial institutions, this signals a need to integrate with digital wallets and payment platforms.
Rewards programs are becoming a critical factor in purchase decisions. 25% of consumers say loyalty points would most increase their likelihood of buying online, emphasizing the growing importance of reward-based marketing.
For marketers, this presents an opportunity to design compelling loyalty initiatives. Offering tailored rewards based on purchase history can boost customer engagement, while partnerships between brands and credit card companies can enhance customer retention. Ecommerce businesses in particular benefit from integrating loyalty programs at checkout to drive repeat purchases.
While BNPL services have made waves in recent years, traditional credit cards still dominate. Only 17% of users prefer BNPL-like instalment options, suggesting credit cards with flexible repayment terms remain the go-to choice for consumers.
This trend highlights a crucial insight for financial institutions: rather than competing with BNPL providers, they can offer interest-free instalment plans as part of their credit card packages. For retailers, understanding these preferences helps tailor financing options, especially for higher-ticket items.
As digital payments grow, so do concerns about fraud. Embracing innovative technologies like biometric authentication and AI-driven fraud detection is now top priority for issuers.
This focus on security presents a unique challenge (and opportunity) for financial service providers. Communicating security measures can enhance consumer trust, particularly among users who may be hesitant to adopt digital payment methods. Retailers and ecommerce platforms should collaborate with payment processors to ensure safe transactions that build consumer confidence.
Dining out is a big deal, with 39% of credit card users expressing interest in restaurants and other food services. Travel also remains a significant spending category, with 20% of users buying travel tickets in the past 3-6 months. Gift cards have also gained traction, with 4% of internet users buying gift cards online last month.
These insights can help marketers tailor promotions, restaurants to adjust menus, and travel agencies to time their campaigns more effectively. By tapping into consumer spending trends as they unfold, businesses can generate a greater return on their marketing investments.
Age plays a crucial role in credit card ownership and usage. Baby boomers lead the way, with 82% owning at least one credit card. Gen X follows with 77%, while millennials lag slightly behind.
Perhaps surprisingly, Gen Z stand out from the other generations. 46% don’t own a credit card - and they’re 32% more likely to say this than millennials. But don’t assume they’re not comfortable with credit - in fact, the number of 18-24 year olds who own a credit card has grown by 25% since 2017. Financial institutions looking to target these savvy young consumers should focus on crafting digital-first products to meet their preferences.
Credit card data is more than just numbers. By analyzing spending patterns, businesses can refine their marketing strategies, anticipate demand, and build stronger customer relationships. Here’s how brands can leverage this data to their advantage.
Credit card data helps companies personalize their marketing efforts by shining a light on product preferences and spending behavior. With a clear view of what customers are buying, businesses can create tailored promotions and product recommendations that land with their target audiences, ultimately driving engagement and boosting conversion rates.
Tracking credit card transactions helps businesses anticipate spikes during holidays, back-to-school seasons, and major sales events. This allows companies to think strategically and allocate marketing budgets more efficiently, ensuring advertising efforts align with periods of peak consumer activity.
Brands can drive loyalty by partnering with credit card companies to offer exclusive promotions and benefits. Collaborative campaigns with popular card issuers can create a sense of exclusivity, encouraging customers to choose one brand over another.
Credit card data informs loyalty program adjustments, helping brands better understand and cater to their most engaged customers. By tracking consumer spending trends, companies can identify potential churn risks and develop proactive engagement strategies.
From retail to finance, credit card data plays an important role in shaping business strategies. Here’s how different sectors put this data to work.
Retailers can use credit card insights to understand which products are most popular across various demographics. This helps optimize inventory levels, reduce stockouts, and gives marketers the insights they need to craft targeted promotional campaigns that resonate with specific customer segments.
In ecommerce, credit card data reveals consumer preferences for payment methods, product categories, and checkout behaviors. By analyzing these insights, businesses can simplify the checkout process, offer relevant payment options, and personalize shopping experiences.
Travel and hospitality brands can use spending data to identify emerging vacation trends -like growing interest in beach resorts - and adjust marketing efforts accordingly. Consumer insights into booking behavior can also inform pricing strategies and seasonal offers.
Banks and financial institutions rely on credit card statistics to design new offerings, such as cashback rewards or low-interest payment plans. By identifying key demographic trends, they can develop more tailored services that appeal to different age groups and spending habits.
Tech companies and mobile payment providers use credit card data to track the adoption of contactless payments and digital wallets. These insights can help guide the development of new features and partnerships with merchants to enhance the payment experience.
Our AI market research assistant, GWI Spark, gives businesses the fast insights they need to decode consumer credit card spending.
Pulling quality consumer survey data from the GWI platform in seconds, GWI Spark is every marketer’s secret weapon for actionable insights on demand. From segmenting audiences based on purchase behavior to uncovering emerging trends like BNPL adoption, GWI Spark gives you a competitive edge like no other. And did we mention it’s free to use?