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And to counterbalance any potential revenue losses from weaker spending elsewhere, issuers can also bump up annual fees for their premium cards. In July, for example, American Express raised its US Consumer Gold Card annual fee from $250 to $325. Dig deeper: To diver further into credit card trends for 2025, read our report The State of Payment Methods 2025.

Gen Z favors cashback and discounts, driving adoption of credit cards (46% for rewards, 36% for convenience). They want to make their money work harder for them, according to our research, since their top goal is saving. 42% find existing digital banking experiences lacking in user-friendliness, and only 7% trust bank representatives for financial advice.

According to the Yale Budget Lab, which factors in the China and UK tariff rollbacks, prices are expected to rise 1.7% in the short term, adding about $2,800 in annual costs per household鈥攅nough to make many consumers think twice before reaching for their credit cards.

Growth in digital account openings for credit cards is slowing, thanks to tightening standards and changing generational behaviors. But issuers are utilizing new tools to keep it afloat.

For example, it doesn't offer credit cards or personal loans, two key consumer banking products. While Block remains confident it can reaccelerate growth in the third quarter, its turnaround could take longer if there鈥檚 an economic slowdown. Weaker discretionary spending would curb payment volume for Square sellers and potentially lower adoption of Cash App鈥檚 crypto services.

Recalibrate products for a cautious consumer with low-risk, value-driven products鈥攕uch as high-yield savings accounts, secured credit cards, and flexible personal loans鈥攖o attract depositors and retain wary borrowers.

Partnerships, non-card payments, and value-added services will help offset potential losses from the Capital One-Discover merger

Through a tie-up with FIS, issuers can integrate Affirm's BNPL solution into their debit card programs

Expand access to affordable credit: With more consumers using credit cards for emergency expenses, banks should explore flexible, lower-interest credit options. Enhance financial education and tools: Digital banking apps can integrate AI-driven insights and budgeting tools to help customers track spending, set emergency savings goals, and receive real-time nudges to stay on track.

Pay by bank also helps merchants avoid costly fees associated with accepting credit card payments. Will it work? Pay by bank adoption is still quite limited among consumers due to a lack of incentives to make the switch. They don鈥檛 want to give up their credit card rewards or financing capabilities. However business-to-business (B2B) payments are a clear use case for pay by bank.

Only Intuit鈥檚 Credit Karma currently offers a gen AI-powered 鈥淪ee Why鈥� feature. Credit Karma provides users with offers on behalf of its card issuer partners. Users can click to read why a particular card is being recommended to them. Credit Karma earns revenues from the issuer for the conversion. But major credit card issuers are well positioned to follow suit.

Launched in 2003 as an integrated payment solution for Mercado Libre鈥檚 marketplace, Mercado Pago has evolved into a comprehensive fintech platform offering digital wallets, QR code payments, point-of-sale (POS) machines, credit cards, and more. These financial services have enabled millions of unbanked consumers to participate in Latin America鈥檚 thriving digital economy.

Delinquencies slightly improved for both issuers, but Discover鈥檚 card volume fell behind

Gen Zers are more likely to demand credit card features that enable mobile wallet commerce. Section 3: Challenges Facing Mobile Wallet Providers. Less than 6 in 10 small businesses accept mobile wallets as a payment option. Apple Pay dominates in-store mobile wallet payments. Apple Pay鈥檚 dominance comes despite Apple iOS and Android having roughly identical smartphone OS shares in the US.

Debit and credit card spending fell 7.4% YoY on February 28, where many categories like restaurants and grocery stores experienced meaningful declines, according to data from Earnest Analytics and Vela Gamma. However, ecommerce sites like Amazon and Temu did not experience a significant decline on that day, per the data.

High inflation and growing interest rates are putting the credit card industry in a precarious position. As 2023 progresses, issuers and networks will rethink their strategies and marketing schemes to protect their bottom lines.

Invigorated travel has reestablished demand for travel credit card perks and benefits. But a recession could reverse gains鈥攔equiring premium card issuers to balance travel offerings with everyday utility. This second annual study reveals which of 10 leading premium travel credit cards are best positioned to attract and engage customers, based on their support of 49 emerging features.

Offering secured or subscription credit cards can help issuers attract these customers and bolster account openings

In October, the Consumer Financial Protection Bureau (CFPB) released its final open banking rule, which requires FIs, credit card issuers, and payment apps like Venmo and Apple Pay to transfer a consumer鈥檚 financial data to other providers upon that person鈥檚 request.