Younger Cardholders Tell Issuers What Would Get Them to Use Their Cards More
Issuers can invest in faster, more precise credit decisions, but those improvements alone may not persuade customers to change how they pay. Cardholders need to see a benefit they can understand and trust, whether that means choosing how to repay a purchase, receiving credit terms suited to their circumstances or understanding why a credit decision […] The post Younger Cardholders Tell Issuers…
Younger cardholders are urging credit issuers to offer more flexible payment options that align with their individual circumstances. According to a new report, research shows that customers are increasingly seeking repayment flexibility and greater transparency into credit decisions. A JD Power study found that 52% of U.S. consumers who use a fixed-payment plan on their credit card switch to that option after the purchase, while 37% have utilized buy now, pay later (BNPL) services within the past three months.
Adobe reported a 9.8% year-over-year increase in BNPL spending during the 2025 holiday season, totaling $20 billion. To attract cardholders, issuers must provide clear benefits that customers can easily understand and trust. This includes offering payment flexibility, tailored credit terms, and explanations for credit decisions.
The U.S. Consumer Financial Protection Bureau and the UK's Financial Conduct Authority have emphasized the importance of explainability in AI-assisted credit decisions. By leveraging AI technology to provide personalized credit options, issuers can turn their investments in AI credit into features that cardholders will actually use and value.
Written by urgent.news from PYMNTS's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
