Redefining Credit Card Rewards with Personalization

The traditional points-and-perks model is fading. A new PYMNTS and Banyan report, "Beyond Points and Perks: How Relevant Benefits Drive Cardholder Engagement," reveals that personalization and ease of access are key to keeping cardholders engaged.

Deal Hunters Are in Control

Nearly half (46%) of cardholders actively seek out deals, with Gen Z (65%) and parents (54%) leading the charge. These consumers expect offers to be easy to find and use, making it crucial for issuers to improve communication through apps, websites, and digital channels. Seventy-five percent of cardholders say accessibility increases the appeal of card-linked rewards.

Ease of Use Drives Engagement

Redemption complexity deters usage. Fifty-five percent of cardholders who find redemption easy use most or all of their rewards, while 56% of those who don’t cite inconvenience as the main barrier. Simplifying redemption processes will increase engagement.

Personalization Enhances Value

Seventy-four percent of cardholders prefer offers relevant to their planned purchases. Merchant-specific discounts drive 6.9 redemptions annually versus 4.4 for general rewards. Aligning rewards with real spending habits boosts engagement and satisfaction.

Card issuers must shift from generic rewards to tailored, easy-to-redeem benefits. It’s not about having the most points—it’s about delivering the right offers at the right time.

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