15th October 2024
Gen Z, known for their digital-first mindset and emphasis on experiences, approaches credit card selection with a unique perspective. It is worth evaluating how this demographic go about the same seeking benefits, especially in the context prioritising flexibility and value over specific travel perks.
A recent report by pymnts.com indicated that co-branded cards have a sizeable market presence but relatively small user bases compared to general-purpose credit cards. Roughly 2.5 times more consumers have general-purpose credit cards than co-branded or store cards.
As for what works in the favour of general-purpose cards, these can be used for a wide range of purchases, from everyday expenses to larger purchases. This flexibility aligns with Gen Z’s desire for options. Specialists point out that these cards offer competitive rewards programmes, such as cash back, travel miles, or points, that can be redeemed for a variety of rewards. Gen Z often values the ability to customize their rewards based on their spending habits. As many Gen Zers are just starting their credit journeys, general-purpose cards can be a great way to build a strong credit history. Responsible use of a general-purpose card can help establish a positive credit profile.
Other than rewards, other important aspects that must be delved into are annual fee, interest rate and benefit like travel insurance.
While travel co-branded credit cards can offer specific travel perks, is it true that Gen Z may be less likely to prioritise these benefits, especially if they don’t travel frequently or have a strong preference for a particular airline or hotel chain? How can they count on flexible redemption options in their category, enhanced perks like lounge access, digital-first features and so on.
How can travel merchants and banks can make a co-brand credit card offering more attractive?
Hear from experts at the upcoming #MegaEvent2024:
https://www.aiconnects.us/mega-event-2024/
By Ritesh Gupta, Ai Events
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