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User experience reigns supreme in credit card decisions

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A super low interest rate may seem like the most tantalizing perk to offer potential credit card holders, but research shows that there are a myriad of other factors that consumers consider when deciding. to use one card rather than another.

User experience benefits such as cash backs, data privacy and credit creation tools are viewed by 75% of consumers, according to a PYMNTS study conducted in conjunction with the US Bank division. Momentum.

The appeal of experience-type user benefits was one of the key findings of The Convenience Catalyst: How Customer Experience Features Drive Credit Card Usage, which took a close look at how consumer preferences determine credit card choice. credit and usage patterns.

Read the report: The Convenience Catalyst: How Customer Experience Features Drive Credit Card Use

While many consumers use credit cards to boost their credit scores while managing debt and cash flow, the report showed that in the past year, of the 168 million consumers who have used a credit card, $ 137 million has a balance owing each month. These regular credit card users are responsible for the accumulation of 96% of credit card debt in the United States and also acquire 80% of the cards.

Regardless of the reasons people use credit cards, research has shown that 70% of those looking for a card see data security as a top priority, and 75% of active users who are also parents are researching credit creation tools when considering a card.

See also: Consumers Consider Up to Six Factors When Choosing a Credit Card

Of those who are considered active card users, 64% look for a minimum of four features when looking for a card, and people living paycheck to paycheck and those living with children have the highest expectations of their credit cards, according to the report. .

Of those living paycheck to paycheck, 82% cited security measures as “very” or “extremely” important, and 74% had similar feelings about rewards programs. Other important considerations included the quality of customer service, which was mentioned by 64% of respondents living paycheck to paycheck. Interest rates and fees were mentioned by 62%.

Related: 65% of Americans Made a Purchase with a Credit Card in the Past 12 Months

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NEW PYMNTS DATA: AUTHENTICATION OF IDENTITIES IN THE DIGITAL ECONOMY – DECEMBER 2021

On:More than half of American consumers think biometric authentication methods are faster, more convenient, and more reliable than passwords or PINs, so why are less than 10% using them? PYMNTS, working with Mitek, surveyed over 2,200 consumers to better define this perception gap in usage and identify ways in which businesses can increase usage.