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Rewards Credit Cards

Publisher Packaged Facts
Published May 11, 2026
Length 39 Pages
SKU # LA21175707

Description

Packaged Facts’ Rewards Credit Cards: How Top Trends and Innovations Impact Revenue and Customer Engagement covers the US market for rewards credit cards. Analysis emphasizes quantifying rewards card usage, rewards earning and redemption value, value and use of rewards cards by currency type; the importance of rewards to consumers at the point of sale and within the context of card acquisition; and key rewards card trends and innovations.

Table of Contents

39 Pages
CHAPTER 1: EXECUTIVE SUMMARY
SCOPE OF REPORT
REPORT METHODOLOGY
Consumer Survey Methodology
Secondary Research Methodology
EXECUTIVE SUMMARY
The Market for Rewards Credit Cards
Rewards credit cards are the way of the world
Battle of rewards card currencies: cash back vs. airline mile and hotel currencies
It pays to have good credit
Interest rates help subsidize the cost of rewards
Importance of Credit Card Rewards and Loyalty Programs
Key Credit Card Rewards Trends
Pivot to affluence
Pivot to annual fees – a trend with legs
Agentic commerce and hyper-personalization rise to the fore
CHAPTER 2: THE MARKET FOR REWARDS CREDIT CARDS
REWARDS CARDS ARE THE WAY OF THE WORLD
Almost All Credit Card Payment Value Will Be on Rewards Cards
Table 2-1. Share of Consumer General-Purpose Credit Card Payment Value on Rewards Cards, 2019 – 2027 (% share)
Credit Cards Users Put Their Rewards Card At Top of Wallet
Table 2-2. Percentage of US Consumers Who Have Credit Cards and Use a Rewards Credit Card Most to Make Payments, 2021 – 2026 (%)
In 2026, US Consumers Will Reap $60 Billion in Credit Card Rewards
And an estimated $6 billion in rewards may go unredeemed
Table 2-3. Value of US Consumer General-Purpose Credit Card Rewards Earned, Redeemed, and Not Redeemed, 2019 – 2026 ($ bil)
Cards That Emphasize Points Generate The Most Rewards
Table 2-4. Value of US Consumer General-Purpose Credit Card Rewards Earned by Type of Reward, 2019 – 2024 ($ bil)
When It Comes To Earning and Redeeming Rewards, It Pays to Have Good Credit
Rewards cards generate almost all card spend among those with the best credit
80% of deep subprime credit card payment value will come from rewards cards by 2027
Table 2-5. Share of US Consumer Credit Card Payment Value on Rewards Cards by Cardholder Credit Score, 2019 – 2027 (% share)
But super prime cardholders earn 43% of rewards value
Table 2-6. Value of US Consumer General-Purpose Credit Card Rewards Earned by Risk Tier, 2019 – 2024 ($ bil)
REWARDS CREDIT CARD ECONOMICS
Credit Card Interest Income Bonanza Subsidizes Rewards Expense
Issuers have benefited from increasingly higher credit card interest rates
Table 2-7. Average Annual APRs on Credit Card Accounts Assessed Interest, Average Annual Prime Rate, and Issuer APR Net Margin, 2016 – 2025 (%)
Profits from revolving balances have risen even when excluding loan losses
Table 2-8. Annual Issuer APR Net Margin, Credit Card Charge-Off Rate, and Net Margin After Loss, 2016 – 2025 (%)
REWARDS CREDIT CARD CURRENCIES
Cash Back Cards Will Extend Their Usage Leadership Position Through 2027
Airline miles cards will also grow share, while points card share will decline
Table 2-9. Share of US Consumer General-Purpose Credit Card Accounts by Type of Reward, 2019 – 2027 (% share)
Table 2-10. Share of US Consumer General-Purpose Rewards Credit Card Accounts, by Type of Reward, 2019 – 2027 (% share)
Cash Back, Miles, and Hotel Credit Card Usage Penetration Is Also Rising
Table 2-11. Percentage of US Adults Who Have General-Purpose Rewards Credit Cards by Rewards Type/Currency, 2022 – 2026 (% of adults)
Airline miles and hotel rewards card usage skews heavily to higher-income consumers
Table 2-12. Percentage of US Adults Who Have General-Purpose Rewards Credit Cards by Rewards Type/Currency and HH Income, 2026 (% of adults and indexed usage)
Gen Z loves cash back
Gen X and Baby Boomers are an airline miles sweet spot
Table 2-13. Percentage of US Adults Who Have General-Purpose Rewards Credit Cards by Rewards Type/Currency and Generation, 2026 (% of adults and indexed usage)
CHAPTER 3: IMPORTANCE OF CREDIT CARD REWARDS AND LOYALTY PROGRAMS
WHO SAYS LOYALTY IS DEAD?
As Long as Customers Feel Rewarded
Table 3-1. Percentage of Adults Who Prefer to Shop at Stores Offering Loyalty Rewards by Degree of Preference, 2022 – 2026 (% of adults)
Loyalty Program Usage Penetration on the Rise
Post-pandemic frequent flyer program usage increases as United surges
Table 3-2. Frequent Flyer Program Members by Airline, 2022 – 2026 (% of adults)
Hotel loyalty program usage is also on the upswing, driven by Marriott Bonvoy
Table 3-3. Hotel Loyalty Program Enrollment by Program, 2022 – 2026 (% of adults)
REWARDS RULE, BUT CONTEXT MATTERS
At the Moment of Decision, Loyalty Rewards Programs Drive Card Choice
Table 3-4. Factors That Influence Card Choice When Making a Credit Card Payment, October 2025 (%)
But More Broadly, Rewards Resonate But Don’t Lead in Importance
Among co-branded cardholders, rewards are top of mind – but not at top of mind
Table 3-5. Top 10 Co-Branded Credit Card Features That Users Deem Most Important, December 2025 (%)
Private label credit card users tell a similar story
Table 3-6. Private Label Credit Card Features That Users Deem Most Important, 2025 (%)
CHAPTER 4: KEY CREDIT CARD REWARDS TRENDS
PIVOT TO AFFLUENCE
Affluent share of spend
Post-pandemic spending growth driven by affluent households
Table 4-1. Cumulative Growth in Personal Outlays by US Household Income Grouping, 2020 – 2025 (5 of adults)
Share of consumer spending by high-income households increases
Table 4-2. Share of All Personal Outlays by US Household Income Grouping, 2020 vs. 2025 (%)
Super prime share of credit reports rises
Table 4-3. Consumer Credit Score Share by Risk Tier, Q3 2019 – Q3 2025 (% share)
Two ends of the risk spectrum have driven credit card origination and balance growth
Table 4-4. Percentage Change in Consumer Credit Card Originations and Total Balances by Risk Tier, Q3 2024 vs. Q3 2025 (% change)
PIVOT TO ANNUAL FEES
Table 4-5. Selected US Super-Premium Credit Cards and Annual Fees, 2020 vs. 2026 ($)
No Wonder More and More Consumers Have Credit Cards Carrying Annual Fees
Table 4-6. Percentage of Adults Who Pay an Annual Fee for a Credit Card, 2024 – 2026 (% of adults)
American Express Shows How It’s Done
Platinum Card fee doubles in 10 years
AMEX’s average fee per card zooms even higher
2026 fee growth just getting started
Table 4-7. American Express: US Consumer Platinum Card Annual Fee, 2016 – 2025 ($ and % change)
Card acquisition continues unbated
Table 4-8. American Express: Average Fee per Card and Net Card Fees, 2016 – 2025 ($, $bil, % change)
While AMEX mints a new revenue stream
Table 4-9 American Express: Net Card Fees and Net Card Fee Share of Revenue, 2016 – 2025 ($bil, % changes, % share)
Demographic Analysis Suggests Continued Annual Fee Growth Opportunity
Strong skew to HH income and net worth
Yes almost 6 in 10 $250K+ household income card holders pay no annual card fees
Table 4-10. Percentage of Adults Who Pay an Annual Fee for a Credit Card, by HH Income and Net Worth, 2026 (% of adults and indexed usage)
PIVOT TO AI AND DIGITAL INNOVATION
Agentic Commerce and Hyper-Personalization Rise to Rewards Innovation Fore
American Express: Agentic Commerce and Membership Asset Discoverability
JPMorgan Chase: Points Boost and Contextual Personalization
Bank of America: Proactive Rewards Insights via Erica
Capital One: Integrated Ecosystem and Real-Time Savings
APPENDIX
METHODOLOGY
Consumer Survey Methodology
Market Size and Forecast Methodology
TERMS AND DEFINITIONS
Bank-branded credit card
Compound annual growth rate (CAGR)
Co-branded credit card
General-purpose credit card
Private label (store) credit card
Payment value

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