One clear trend is rising to the top of payments: consumers favor a single credit card over all others, and that “top-of-wallet” card dominates their spending. Understanding this behavior is essential for businesses looking to attract and retain customers.
What Is a Top-of-Wallet Card?
A “top-of-wallet” credit card is the card a consumer reaches for first, whether for groceries, gas, online purchases, or bills. According to the PYMNTS Credit Economy: Top-of-Wallet Credit Cards report, consumers who have three or more cards still concentrate most of their spending on just one. In fact, nearly half (46%) of consumers with three or more cards use their primary card multiple times a week.
Why does this matter? Because top-of-wallet status significantly influences purchase volume and customer loyalty.
How Top-of-Wallet Cards Influence Spending
On average, consumers carry about 2.8 active credit cards. Yet their preferred card sees the lion’s share of activity, with an average monthly balance of $1,903 compared to just $1,202 for their second-choice card and $929 for their third.
This effect is even more pronounced among younger consumers:
- Gen Zers use 30% of their primary card’s credit limit monthly.
- Millennials follow closely behind at 27%.
These trends show that younger generations are deeply reliant on their go-to cards not just for emergencies but for everyday transactions, subscriptions, and even rent.
Why Consumers Choose Their Primary Card
So what makes a card top-of-wallet?
- Rewards or discounts were cited by 48% of consumers as a major reason for choosing their primary card.
- High credit limits, low interest rates, and good customer service followed as additional drivers.
Interestingly, consumers who use their cards for everyday purchases were the most rewards-motivated, while those using them for bills prioritized security features.
What This Means for Businesses
When your business only accepts limited payment methods or fails to support common card networks, you risk falling off the consumer’s radar. Worse, you risk losing repeat purchases.
Here’s what businesses can do to stay aligned with consumer payment behavior:
1. Accept All Major Credit Cards
Consumers rely heavily on their primary card. Not accepting it could cost you a sale, especially for younger, high-usage groups like Gen Z and Millennials.
2. Offer Payment Flexibility
The study shows that 48% of Gen Z would use their card more if they could choose payment options at checkout, like paying later or from a connected bank account.
3. Optimize for Rewards
Consumers want to use the card that benefits them most. Offering loyalty points, discounts, or integration with popular rewards platforms can influence card choice and increase transaction frequency.
4. Keep Payment Friction Low
Nearly 1 in 5 shoppers abandon purchases due to friction at checkout. Make sure your payment processing is fast, secure, and mobile-friendly.
Conclusion
Top-of-wallet card habits offer a window into the modern consumer mindset: convenience, rewards, and control matter more than ever. By understanding and responding to these habits, businesses can create a seamless experience that meets customers where they are at the top of their wallet.
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