Loyalty Shifts as UK Consumers Embrace Hyper-Personalised Credit Options

Consumers are seeking more personalised benefits from their credit card providers, according to a new survey published by Marqeta.

Consumers are increasingly seeking more personalised benefits from their credit card providers, such as rewards and loyalty points, according to a new survey published by Marqeta, the global modern card issuing platform that enables embedded finance solutions for the world’s innovators.

The company has published its fourth annual 2024 State of Credit report which polled 3,000 consumers globally – including 1,000 in the United Kingdom – revealing that customer loyalty to credit cards is shifting, as the public explore new financial products and services that better meet their individual needs.

Consumers Demand More from Traditional Credit Cards

Over half (53%) of UK respondents confirmed that their credit card helped them to make ends meet in the last year, yet nearly half (48%) confirmed that none of their credit cards currently accrue rewards, loyalty points or other benefits. Of people that reported using more than one credit card, 43% confirmed they would use a credit card more frequently if better rewards were offered.

Embedded finance is also driving more demand in the UK for rewards and personalisation, with more consumers using financial services offered by non-financial providers to access benefits and loyalty points. For example, 30% of UK respondents confirm they own a credit card affiliated with a brand of store, a 25% increase in just 12 months since Marqeta’s 2023 State of Credit report.

There has also been a noticeable shift in consumer attitudes toward the opportunities provided by emerging financial services, such as Buy Now, Pay Later (BNPL). For example, 63% of UK BNPL users confirmed that the service helped them make ends meet during the last 12 months, and this rose to 70% amongst 44-59 year olds. People reported using BNPL due to the fact they helped them budget (44%), offered convenience (43%) and charged zero interest (39%). Additionally, the study goes on to reveal consumer appetite for choice and flexibility in new financial services, with 44% of UK respondents stating that they are interested in using a payment card that can switch between debit, credit and BNPL features.

“Financial services companies need to look at the way the market is going and reinvent their approach to reflect the highly personalised, flexible financial experiences that consumers are now demanding,” said Marcin Glogowski, SVP, Managing Director Europe and UK CEO at Marqeta.

“Banks have done a very good job at monetising loans and credit, but by managing risk so effectively, the system has catered to wealthier people who have more assets,” said Marcin Glogowski, SVP, Managing Director Europe and UK CEO at Marqeta.

“Expanding purchasing power to everybody requires significant investment in technology. For example, upgrading solutions to analyse reams of data to determine more about an applicant’s credit request and personal requirements than has previously been possible. As the trend towards instant, digital, flexible, personalised payments accelerates, this will become a necessity to keep up with consumer demand.”