BOSTON–Consumers who don’t hold traditional cards are receptive to credit-like products such as store cards and BNPL financing, a new study has found.
A new report, “Decision Guide: What Credit Card Outsiders Want — and How FIs Can Bring Them Back,” has been released as part of a collaboration between PYMNTS Intelligence and Atelio by FIS, and explores the financial behaviors and preferences of U.S. consumers who do not hold traditional credit cards, according to the two organizations.
According to PYMNTS Intelligence, the study, based on a survey of 2,630 U.S. consumers conducted in early 2024, identifies distinct personas among these “credit card outsiders,” including “second chancers” who previously had credit cards, “credit curious” individuals interested in obtaining one, “gone for goods” consumers no longer interested, and “never-nevers” who have never had a credit card and have no interest in one.
What Research Found
The organizations said the research:
- That a significant majority of these outsiders, 62%, already use some form of credit, most notably store cards and buy now, pay later (BNPL) services, suggesting a preference for accessible, short-term credit solutions rather than traditional loans.
- Explores the specific credit solutions that appeal most to these consumers, with secured credit cards ranking as the most sought-after product at 29% interest, closely followed by traditional credit cards at 28% and BNPL services at 27%.
- Identifies key obstacles to the adoption of secured credit cards, with one-in-three outsiders citing a lack of necessary upfront funds as the primary barrier. Other significant concerns include the perception that secured cards do not improve spending flexibility (also cited by 1 in 3), high interest rates or annual fees (32%), and the reluctance to carry debt on such a card (29%).
For additional info, go here.
