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Is Funding Really a Barrier to Co-Brand Debit?

(New York, NY) Co-brand debit cards continue to gain attention across the payments industry, but questions remain about whether they can achieve notable adoption in a market long dominated by credit. One commonly cited challenge is funding—unlike credit cards, co-brand debit programs require cardholders to actively move or maintain money in an associated account. Auriemma Group’s latest issue of The Payments Report examines how cardholders are funding co-brand debit cards today and finds that concerns about this potential barrier may be overstated.

Auriemma’s data indicates co-brand debit cardholders tend to have an easy time managing their account. From opening (75% easy), funding (75%), and linking to other bank accounts (70%), co-brand debit accounts appear to deliver a low-friction experience. For issuers and brands, this suggests that usability may be less of a challenge than driving initial interest and engagement.

“Cardholders most often link a direct deposit to their co-brand debit account, but transfer-based funding is utilized too,” says Jonathan O’Connor, Senior Manager of Research at Auriemma Group. “And most of those who do not currently hold a co-brand card say they would likely fund it the same way if they acquired one.”

Not only are co-brand debit cardholders funding their accounts, Auriemma’s research found that 43% would maintain a balance of at least $1,000 if their card offered 1% cash back on partner brand purchases, gas, and groceries, and 0.5% cash back on everything else. Additionally, nearly three-quarters would fund that account at least monthly, highlighting that the product could become a competitor to traditional debit.

“Funding co-brand debit accounts may be less of a barrier than expected,” says O’Connor. “Cardholders are not only open to a variety of funding methods, but many indicate a willingness to fund them regularly and keep substantial balances in these accounts. That suggests the bigger challenge for issuers and brands may not be getting money into the account—it may be creating a sustainable rewards proposition strong enough to motivate cardholders to make the account part of their everyday financial lives.”

Drawing on insights from recent issues of The Payments Report, Auriemma Group will be exploring these findings and more in a member-exclusive webinar Rethinking Co‑Brand Cards: Debit’s Emerging Role on June 24 from 2:00–2:45pm EST. The session will examine where co-brand debit fits within today’s payments landscape, why it is gaining momentum, and the key considerations for issuers and brand partners as they evaluate future program strategies.

Members interested in joining should email research@auriemma.group for more information.

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 April 2026 among 800 adult debit 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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Shell Launches New Co-Brand Credit Card

Congratulations to Shell, Imprint, and Mastercard on the launch of the new Shell credit card program. In an increasingly competitive co-brand landscape, the program stands out with a particularly strong value proposition that combines meaningful everyday value with benefits that feel highly relevant to Shell customers. We’re excited to see how the program grows from here.

Cardholders earn:

  • 4% back at Shell on gas, EV, and in-store purchases
  • 3% back on dining and groceries
  • 2% back on everything else

Plus:

  • $50 sign-up bonus after spending $500 on the card in the first 60 days of account opening
  • No annual fee
  • No impact to credit score to see if you’re approved
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Premium Annual Fee Cards Must Work Harder to Prove Their Worth

(New York, NY) Premium credit cards continue to evolve, rolling out new perks, lifestyle credits, and expanded travel benefits to justify rising annual fees and attract high-value customers. The Chase Sapphire Reserve is the latest example, introducing refreshed dining and travel credits alongside a $795 annual fee. But do richer perks meaningfully offset higher costs? Auriemma Group’s latest issue of Cardbeat US finds that cardholders hold premium rewards cards to a high standard—and expect the value they deliver to clearly outweigh the price.

Premium annual fee cards remain a niche segment—over 4-in-10 credit cardholders hold an annual fee card, but only 12% carry a premium card priced at $300 or more. Among those who do, expectations climb steeply with the annual fee. Perks and benefits are the leading driver of acquisition, and cardholders expect them to scale with cost. For a card like the Chase Sapphire Reserve, that translates into a substantial value threshold: 25% of annual fee cardholders say it would need to provide $5,000 or more in value to justify its $795 price tag.

“Premium cardholders will pay more, but only when the math works,” says Jonathan O’Connor, Senior Manager of Research at Auriemma Group. “Issuers need to ensure their benefits program delivers multiples of the price tag, not just an incremental enhancement to existing products.”

Auriemma’s research found that 41% of credit cardholders are likely to apply for a card like the Chase Sapphire Reserve. Sign-up bonuses remain the most influential acquisition driver, followed by marketplace multipliers and the overall value of rewards, perks, credits, and memberships. Prestige and exclusivity can also heighten appeal, but the combination of immediate incentives and long-term earning potential ultimately drives adoption.

“A strong premium card program would include a mix of upfront credits and ongoing rewards,” says O’Connor. “Cards that present value both immediately and over time are best positioned to attract applicants, whereas over-indexing on either approach risks narrowing the audience.”

As premium card fees rise, the issuers that will stand out are those that make their value unmistakable. Clear, easy-to-use benefits, paired with rewards that scale meaningfully with spend, will determine which products resonate in an increasingly discerning market. As competition intensifies, premium cards must not only look compelling—they must prove their worth every day.

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 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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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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