Credit card demographics are changing, with more than half of U.S. young adults ages 25 to 34 now more likely to use primary financial institution (FI) and co-branded credit cards, according to a new report from Mercator Advisory Group.
Mercator Advisory Group is an independent research and advisory services firm, focused on banking industries and payments. The report is based off the findings from the group’s CustomerMonitor Survey Series online panel, which featured 3,002 U.S. adult consumers surveyed in June 2014.
Sixty-four percent of young adult credit card holders use their FI credit cards most often, according to the report. Smartphone owners and tablet users who pay for goods and services by mobile phones (78 percent) are also more likely than average to use their primary FI card as their main method of payment.
"Credit card user demographics are changing, and new cardholders, who appear to be predisposed to keeping their primary financial institution’s credit card at top of wallet, are demanding new tools, more valuable rewards and higher credit limits to stimulate their use," Karen Augustine, manager of Primary Data Services and CustomerMonitor Survey Series at Mercator Advisory Group and author of the report, said in a statement
New cardholders are also looking to acquire credit. Mercator Advisory Group’s Primary Data service reports that new cardholders are more likely to use co-branded cards in order to extend personal credit. The report implied that higher credit card limits combined with lower fees and valuable reward programs are motivating factors for increased credit card spending.
The study examined the change in demographics among cardholders and the current landscape of credit card use. Highlights of the report also include the number and type of credit cards used in the U.S., year-over-year trending of credit cardholder penetration and behavior, shifts in channels consumers use to apply for credit cards, mobile-based accounts, changes to credit card features, limits, APR, rewards programs and consumer reactions to merchant rules for credit card use.
The full report can be found at the Mercator Advisory Group website.
