- 36% of US consumers surveyed said they plan to apply for a new
credit card in the next 12 months, with that number among 18-44
year olds booming to 55%.
- 74% of US consumers surveyed said there is room to personalize
rewards based on individual spending habits.
- 62% of US consumers surveyed who own a co-branded card consider
themselves a customer of the brand or store instead of the
bank.
Even satisfied credit card holders are on the hunt for their
next credit cards, despite reporting generally high satisfaction
with their current cards, according to a new survey published today
by Marqeta, the global modern card issuing platform that enables
some of the world’s most innovative embedded finance use cases. The
company released its 2023 State of Credit report which surveyed
3,000 consumers globally – including 2,000 in the United States –
highlighting sentiment toward their credit cards and financial
service providers, exploring opportunities for brands and banks to
enhance their offerings and strengthen customer loyalty.
Marqeta’s 2023 State of Credit Report marks the third time the
company has surveyed consumers in the US and UK about their credit
preferences. In the report, 7-in-10 US consumers surveyed reported
being satisfied with their current primary credit card, however,
53% said that their credit card still has room for improvement.
This desire for more is evident in the fact that over one-third
(36%) of US consumers surveyed said they plan to apply for a new
credit card in the next 12 months, with younger consumers being the
most likely to drive new credit card applications: 55% of 18-44
year olds said they plan to apply for a new credit card, compared
to only 17% of those ages 45 and up. Interestingly, 71% of
consumers surveyed said they already own two or more credit cards,
suggesting that they’re searching for a new card experience beyond
their primary cards to better meet their specific needs.
The report shows that credit cards are the gateway to additional
financial products for consumers, helping brands and banks deepen
their relationships and expand revenue. Over half of US consumers
surveyed reported having more than one financial product from their
credit card provider, with that number increasing to 62% for
consumers ages 18-50 years old. Of consumers surveyed with multiple
products with their credit card provider, 69% had a credit card
first and added additional financial products over time.
“Our survey shows that consumers, especially younger ones, are
not just looking for their next credit card, they are seeking
something entirely different,” said Todd Pollak, Chief Revenue
Officer at Marqeta. “In fact, they are expecting to get a card that
is highly personalized and one that is fully integrated into the
brand experience they use daily. While today the co-brand
experience is still primarily owned by the bank, brands have a
massive opportunity to embed tailored credit experiences that
consumers desire most into their offerings.”
Rewards, Fees, and Personalization Take Center Stage
When searching for their next credit card, consumers surveyed
reported being most influenced by the level of flexibility and
personalization available. Not surprisingly, rewards have a firm
hold on US consumers, with 58% citing rewards as the biggest
benefit of using credit cards, followed by convenience (46%) and
fraud protection (44%). Seventy-one percent of respondents who earn
rewards with their credit card said cash back was their most used
reward. While rewards may play a significant role in credit card
decisions, consumers are still looking for credit cards that offer
more customization and lower fees:
- 44% of US respondents with more than one credit card said
better rewards would get them to switch to a different
top-of-wallet card
- 74% of US consumers said there is room to personalize rewards
based on individual spending habits.
- 70% of US consumers surveyed said credit card fees impacted
their decision to apply for a credit card and 59% said the impact
on credit score weighed heavily on their decision.
“Our 2023 State of Credit report shows that consumer decisions
to apply for a new credit card rely less on their satisfaction with
their current cards and more on their desire for differentiated
credit offerings,” said Pollak. “While rewards may initially pique
consumer interest in applying for new credit cards, it's the
ability to customize rewards and integrate them into shopping
experiences that will earn adoption and loyalty.”
Credit Cards Are Strategic Embedded Finance Opportunity for
Brands
Consumers have become more reliant on their favorite brands to
provide credit products, with 50% of US consumers surveyed owning a
credit card affiliated with a brand. Additionally, the survey shows
that 55% of those consumers who own a card affiliated with a brand
consider the brand or store to ultimately be responsible for
customer service and 62% consider themselves a customer of the
brand or store instead of the bank. With younger consumers, 18-44
years old, driving new credit applications, the report shows that
this group is looking for their favorite brands to provide the
personalized credit options that they desire, rather than the bank.
The shift in where consumer loyalty lies, putting ownership on the
brands that consumers use most often, underscores the possibility
for embedded finance to provide seamless experiences for
non-financial companies looking to offer credit solutions.
Buy Now, Pay Later’s Credit-Building Potential
According to Marqeta’s report, consumers are looking to use Buy
Now, Pay Later (BNPL) services as tools that help build credit and
open access to additional credit services. Seventy-one percent of
US BNPL users surveyed would be interested in accessing other
financial services through their BNPL provider, up from 52% in
2022, and 60% said they already use them. Additionally, 64% of US
respondents looking to build their credit said they would be
interested in using BNPL to build credit and increase their score
to get a credit card.
"Marqeta’s 2023 State of Credit report provides in depth
insights into changing consumer credit habits and acts as a roadmap
to help financial services companies build, grow, and sustain
consumer financial relationships. And what is most surprising is
the apparent opportunity it reveals for merchant brands to become
the face of these relationships by offering products, such as
credit cards and BNPL, via embedded finance," said David Shipper,
Strategic Advisor, Retail Banking and Payments at Datos
Insights.
To download the full report, please click here.
About The 2023 State of Credit Report
Marqeta’s 2023 State of Credit survey was fielded by Propeller
Research on behalf of Marqeta, surveying 3,046 consumers ages 18
and up (2,012 in the US, 1,034 in the UK).
About Marqeta (NASDAQ: MQ)
Marqeta’s modern card issuing platform empowers its customers to
create customized and innovative payment cards and embedded finance
offerings. Marqeta’s platform, powered by open APIs, gives its
customers the ability to build more configurable and flexible
payment experiences, accelerating product development and
democratizing access to card issuing technology. Its modern
architecture provides instant access to highly scalable,
cloud-based payment infrastructure that enables customers to launch
and manage their own card programs, issue cards and authorize and
settle transactions. Marqeta is headquartered in Oakland,
California and is certified to operate in more than 40 countries
globally. For more information, visit www.marqeta.com, Twitter and
LinkedIn.
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements expressed or implied in this press release include, but
are not limited to, quotations and statements relating to changing
consumer preferences; increasing consumer adoption of certain
digital payment methods, products, and solutions, including credit
card issuing; which payment, banking, and financial services
products and solutions may succeed; technological and market
trends; Marqeta’s business; Marqeta’s products and services,
including credit card issuing; and statements made by Marqeta’s
senior leadership. Actual results may differ materially from the
expectations contained in these statements due to risks and
uncertainties, including, but not limited to, the following: any
factors creating issues with changes in domestic and international
business, market, financial, political and legal conditions; the
effect of and uncertainties related to the U.S. and global
economies and demand for Marqeta’s services and products; the risk
of ongoing financial services and banking sector instability and
follow on effects to fintech companies, general economic conditions
in either domestic or international markets, including inflation
and recessionary fears, conditions resulting from geopolitical
uncertainty and instability or war, including the direct and
indirect effects on U.S. and global economies, our business,
results of operations, and financial condition; the risk that
Marqeta is unable to further attract and grow its customer base;
the risk that consumers will not perceive the benefits of Marqeta’s
products and services, including digital payment and banking
products and services and credit card issuing; the risk that
Marqeta's products and services do not operate as intended,
including digital payment and banking products and services and
credit card issuing; the risk that Marqeta’s products and solutions
will not achieve the expected market acceptance, including digital
payment and banking products and services and credit card issuing;
and the risk that competition could reduce expected demand for
Marqeta’s products and services, including digital payment and
banking products and services and credit card issuing. Detailed
information about these risks and other factors that could
potentially affect Marqeta’s business, financial condition and
results of operations are included in the “Risk Factors” disclosed
in Marqeta's Annual Report on Form 10-K for the year ended December
31, 2022, as such risk factors may be updated from time to time in
Marqeta’s periodic filings with the SEC, available at www.sec.gov
and Marqeta’s website at http://investors.marqeta.com. The
forward-looking statements in this press release are based on
information available to Marqeta as of the date hereof. Marqeta
disclaims any obligation to update any forward-looking statements,
except as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20231022007282/en/
Media: James Robinson 530-913-0844 jrobinson@marqeta.com
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