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Recurring Payment Management Tools Could Drive Cardholder Loyalty and Spend Consolidation

(New York, NY) Once a mainstay of gym memberships and magazine subscriptions, recurring payments have evolved into a dominant force in everyday spending—from streaming services and cloud storage to buy now, pay later plans and auto-refilled essentials. As these payments grow in number and complexity, cardholders are looking for smarter ways to stay on top of them.

Recent research from Auriemma Group’s Mobile Pay Tracker reveals that tools offering visibility and control over recurring payments don’t just add convenience—they can influence which card a consumer chooses to link and even spark provider switching.

Two-thirds of cardholders (66%) say they are interested in a recurring payment management tool offered by their credit card issuer, with similar interest seen for debit cards (63%) and mobile wallets (55%). Enthusiasm runs even higher among Apple Pay users (75%), who gained access to such a feature in April, potentially raising the bar across the payment landscape.

“Cardholders want visibility and control—and recurring payments are no exception,” says Jonathan O’Connor, Senior Manager of Research at Auriemma Group. “Providers that help manage subscriptions and bills are well-positioned to strengthen loyalty and become the go-to for linked payments.”

In fact, many cardholders say these tools would directly impact their behavior. Among those interested in recurring payment management tools, more than 6-in-10 say they would be more likely to link recurring payments to the provider (e.g., credit or debit issuer) offering them.

And 44% of those likely say they would go a step further—switching at least some of their existing linked payments to a provider that offered a better way to view and manage their recurring payments, similar to the service Apple Pay has rolled out. This is even more common among younger cardholders. 53% of 18–34-year-olds say they would switch at least some of their existing recurring payments to a provider offering better management tools.

As recurring payments continue to grow—and as digital tools reshape how consumers interact with their finances—payment providers that offer proactive solutions may find themselves winning not just the next transaction, but the next wave of loyalty.

“Recurring payments management tools are becoming an increasingly important factor in the competition for preauthorized payments,” says O’Connor. “Cardholders are telling us that the right tools can tip the scale—not only in where they link payments, but in which provider they trust to manage their financial routines.”

Survey Methodology

Mobile Pay Tracker

This Auriemma Group study was conducted online within the US by an independent field service provider on behalf of Auriemma Group (Auriemma) in April 2025 among 2,181 Mobile Pay (i.e., Apple Pay, Google Wallet, Samsung Wallet) eligible adult credit cardholders. The number of interviews completed for both is sufficient to allow for statistical significance testing among sub-groups at the 95% confidence level ±5%, unless otherwise noted. The purpose of the research was not disclosed, nor did respondents know the criteria for qualifying.

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Inactive Cardholders More Likely to Resume Use Than Cancel Their Credit Card

(New York, NY) One-third of credit cardholders have at least one inactive card—that is, a card they haven’t used in the past six months. But inactivity doesn’t always signal intent to cancel. According to Auriemma Group’s latest issue of Cardbeat US, inactive cardholders are more likely to use their inactive card (46%) than cancel it (35%) in the next six months, revealing a potential opportunity for issuers to reengage these customers.

To understand inactivity, it’s important to examine why cardholders acquire cards in the first place. While emergency use and credit building were the top motivators at the end of 2023, sign-up bonuses have now taken the lead—rising from 22% in Q3-2023 to 30% in Q2-2025. However, a strong sign-up bonus alone won’t sustain card usage without compelling ongoing rewards, and can set the stage for future inactivity.

“Cards fall out of rotation, but that doesn’t mean they’re destined for dormancy,” says Jaclyn Holmes, Director of Research at Auriemma Group. “Providing and communicating competitive and relevant rewards and benefits to cardholders could spur reengagement.”

The decision to resume use or cancel hangs in the balance—and issuers have a limited window to influence the outcome. Auriemma’s research finds that younger cardholders who have fallen into dormancy present both a key risk and a key opportunity: 54% say they plan to resume usage soon, but only slightly fewer (44%) are also considering cancellation within the same timeframe. Whether issuers reengage these cardholders—or lose them altogether—may come down to how compelling the post-promo value proposition truly is.

This tension underscores the urgency for issuers to act—before indecision becomes attrition. Relevance and timing are key. A well-timed incentive, a reminder of existing benefits, or a repositioning of the card’s utility can be enough to tip the scale toward reactivation. Without that nudge, issuers risk losing cardholders who are still open to staying—but need a reason to do so.

Strategic Takeaways for Issuers:

  1. Use inactivity as a signal, not a setback. Behavioral cues—like a drop in spend or time since last use—can help issuers proactively identify at-risk accounts and deploy timely retention strategies.
  2. Target the ready-to-return. Younger cardholders present both an opportunity for reengagement and an attrition risk if ignored.
  3. Refresh card value. Updated rewards and everyday relevance help cards re-enter the spending mix.

“Whether active or inactive, credit cardholders need a reason to use their cards again,” says Holmes. “While resuming use of inactive cards is more likely than canceling, issuers that do not engage their inactive population risk cardholders slipping into dormancy or cancelling outright.”

Survey Methodology

Cardbeat US

This Auriemma Group study was conducted online within the US by an independent field service provider on behalf of Auriemma Group (Auriemma) in May 2025 among 800 adult credit cardholders. The number of interviews completed for both is sufficient to allow for statistical significance testing among sub-groups at the 95% confidence level ±5%, unless otherwise noted. The purpose of the research was not disclosed, nor did respondents know the criteria for qualifying.

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Beyond Basic Rewards: How Cardholders Respond to Non-Traditional Rewards Accelerators

(New York, NY) Rewards programs are evolving—and cardholders want in. Issuers seeking to expand their accelerated rewards beyond traditional categories like grocery, gas, and dining may find untapped potential in less conventional areas. According to Auriemma Group’s latest issue of Cardbeat US, cardholders express strong interest in earning 3% back on non-traditional categories such as streaming services, recreational activities, pet care, and self-care—highlighting new ways to capture attention and drive spend.

Streaming and digital subscriptions top the list of emerging non-traditional rewards, drawing interest from 4-in-10 cardholders when positioned as an additive 3% cash-back category. Recreational activities see similarly high demand, while meaningful shares also express enthusiasm for rewards tied to pet care and self-care—suggesting lifestyle-aligned rewards may offer a new path to differentiation.
“Everyday staples like grocery, gas, and dining will always be important, but non-traditional rewards offer a way to round out the value proposition,” says Jaclyn Holmes, Director of Research at Auriemma Group. “When rewards reflect the full range of consumers’ lifestyles, the card becomes more relevant—and more likely to become top-of-wallet.”

Non-traditional spend categories also resonate when redeeming rewards. Interest closely mirrors earning preferences, with 68% wanting to redeem points for recreational activities and 66% for streaming. More than half would also like redemption tied to self-care, pet care, and charitable giving.

Some issuers are already heading in this direction. Products like the Wells Fargo Attune, Capital One Savor, American Express Blue Cash Preferred, and Paceline Card blend traditional reward structures with lifestyle-focused benefits—reflecting a broader shift toward more relevant and holistic value propositions.

“Rewards aren’t just about what people buy—they’re about how they live,” says Holmes. “Issuers that recognize and respond to these evolving expectations will be the ones that remain top-of-wallet.”

Survey Methodology

Cardbeat US

This Auriemma Group study was conducted online within the US by an independent field service provider on behalf of Auriemma Group (Auriemma) in May 2025 among 800 adult credit cardholders. The number of interviews completed for both is sufficient to allow for statistical significance testing among sub-groups at the 95% confidence level ±5%, unless otherwise noted. The purpose of the research was not disclosed, nor did respondents know the criteria for qualifying.

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Alternative Rewards Structures Resonate—But Simplicity Still Wins Out

(New York, NY) While many cardholders are intrigued by innovative rewards structures, traditional cash back models continue to dominate the credit card landscape. Auriemma Group’s latest issue of Cardbeat US highlights how newer approaches—like increasing rewards with spend or fixed-dollar incentives—can appeal to targeted segments, even as flat and category-based cashback offers remain the most attractive.

Traditional rewards models offer familiarity and clarity, two qualities that consistently drive acquisition. Auriemma’s research finds that 70% of credit cardholders are attracted to high cashback on specific categories, and 67% to flat-rate cashback. By contrast, less conventional options—such as receiving $20 for every $300 spent (58%) or earning more cashback as spend increases (47%)—garner moderate but notable interest.

“Simplicity remains paramount even when alternative rewards structures offer the richest value proposition,” says Jonathan O’Connor, Senior Manager of Research at Auriemma Group. “The most attractive programs are those that strike the right balance—offering rewards that are not only compelling, but are also clearly understood and easily obtained.”

Who Prefers What? Demographics Shape Rewards Appeal

Interest in newer rewards structures is higher among younger cardholders, urbanites, revolvers, and those with annual household incomes of $75,000 or more—but traditional cashback schemes still come out on top in overall preference. These groups may be drawn to novel programs, but most cardholders favor predictable reward earnings. While high cashback on specific categories is increasingly familiar and attractive, 82% say they prefer consistent flat-rate rewards across all purchases, compared to 61% who prefer higher rates on specific categories—a preference that varies widely by demographic.

Among those traditional options, demographic differences come into sharper focus. Gen Z and Millennial cardholders, those with an annual household income of $75,000 or more, and those who hold multiple credit cards are more likely to favor high cashback on specific spending categories. Meanwhile, their older and lower-income counterparts tend to prefer flat-rate cashback for its simplicity and reliability. These distinctions underscore the importance of aligning card rewards with the values and routines of each audience segment.

“Rewards structures influence not only whether a cardholder applies, but how they’ll use the card once approved,” adds O’Connor. “Understanding these usage patterns is key to building long-term engagement.”

Strategic Implications for Issuers

Though traditional rewards still outperform in overall preference, alternative models present opportunities to reach underserved or overlooked segments. Auriemma’s findings offer three key considerations for issuers evaluating future rewards designs:

1. Simplicity is Scalable: Flat-rate rewards are not only easy to market—they also drive consistent usage across categories. These cards can become top-of-wallet options due to their clarity and versatility.

2. Framing is Fundamental: Complex rewards structures can work—when communicated effectively. Issuers looking to try something new should invest in straightforward language and relatable examples that help cardholders grasp the benefit immediately.

3. Segment for Success: Younger, urban, and higher-income cardholders are more open to alternative rewards. Targeted messaging and tailored card rewards could lead to conversion.

Together, these strategies point to a clear path forward: one where simplicity and personalization work in tandem to meet the evolving expectations of credit cardholders.

“Cardholders may be open to new ideas, but they’ll ultimately stick with what feels intuitive and rewarding,” says O’Connor. “For issuers, that means crafting offers that don’t just attract but sustain long-term engagement.”

Survey Methodology

The Payments Report

This Auriemma Group study was conducted online within the US by an independent field service provider on behalf of Auriemma Group (Auriemma) in February 2025 among 1,208 adult credit cardholders. The number of interviews completed for both is sufficient to allow for statistical significance testing among sub-groups at the 95% confidence level ±5%, unless otherwise noted. The purpose of the research was not disclosed, nor did respondents know the criteria for qualifying.

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Flat Cashback Rewards Cards Outshine Tiered Rewards in Cardholder Appeal

(New York, NY) Cardholders consider many factors when applying for a new credit card, with those offering no annual fees and attractive rewards structures being the most influential. Auriemma Group’s latest issue of Cardbeat US confirms that offering compelling rewards significantly impacts cardholder decisions, with a clear preference for flat cashback structures over tiered options. The simplicity and predictability of flat cashback resonates strongly with today’s applicants.

When presented with two rewards card structures of roughly equal cashback value, 48% of credit cardholders prefer the flat cashback structure, while 43% lean toward the tiered structure. Although this difference may seem modest, it widens significantly when it comes to application likelihood. 70% of cardholders say they are likely to apply for a flat cashback card, compared to 58% who would apply for a tiered rewards card, if offered by a trusted issuer. These findings highlight the competitive edge of straightforward earning structures.

Cardholders also have high expectations of their credit cards, often looking for value that goes beyond standard offerings. Auriemma’s research found that while a 2.5% flat cashback rate is not common and typically comes with various conditions, many cardholders perceive this level of return as being in line with today’s industry standards. This expectation underscores the challenge for issuers to balance generous rewards with sustainable program structures, especially as preferences vary by demographic.

For instance, issuers aiming to attract Gen Z may find that tiered rewards structures hold unique appeal. This cohort shows a slight preference for tiered rewards, suggesting they may appreciate the potential for optimized earnings that this model offers. By aligning rewards with Gen Z’s preferences, issuers may improve acquisition among younger cardholders.

“While there are reasons to gravitate toward one rewards product over another, flat rewards require little work and mental math on the part of the cardholder,” says Jaclyn Holmes, Director of Research at Auriemma Group. “This makes it the smart option for those who don’t want to give their credit cards much thought, enabling more seamless and stress-free spending experiences.”

Flat rewards structures also hold a distinct advantage in day-to-day usage, with 46% of rewards cardholders reporting that their most frequently used card offers flat cashback. This shows that ease and versatility may make flat cashback cards the popular choice across spending categories, contributing to top-of-wallet status.

Flat cashback cards provide an accessible, simple way to earn, appealing to mass consumers and driving spending across various merchants. Issuers may find that a straightforward rewards model fosters ongoing card usage, as cardholders don’t need to track changing categories to maximize their rewards.

“Flat rewards offer a win-win for both cardholders and issuers,” says Holmes. “Cardholders can enjoy the effortlessness of earning, while issuers benefit from increased acquisition and engagement. As the credit card landscape evolves, prioritizing simplicity in rewards can be a powerful differentiator.”

Survey Methodology

Cardbeat US

This Auriemma Group study was conducted online within the US by an independent field service provider on behalf of Auriemma Group (Auriemma) in September 2024 among 801 adult credit cardholders. The number of interviews completed for both is sufficient to allow for statistical significance testing among sub-groups at the 95% confidence level ±5%, unless otherwise noted. The purpose of the research was not disclosed, nor did respondents know the criteria for qualifying.

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