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BNPL Credit Reporting Poised to Reshape Payment Behaviors

(New York, NY) As major credit bureaus begin incorporating Buy Now, Pay Later (BNPL) data into their reporting systems, consumer payment behaviors are poised to shift—but only for those who are aware of the change. According to Auriemma Group’s latest issue of The Payments Report, over half (54%) of cardholders say BNPL credit reporting would influence whether they choose to pay with BNPL over a credit card—with more saying they’d lean toward credit cards (38%) than toward BNPL (16%).

This potential shift in preference is accompanied by changes in repayment behavior. One-third (34%) of BNPL users say they would prioritize paying off balances as quickly as possible if their activity were reported. Yet others would move away from BNPL altogether, with 6% saying they would stop using it. This dual reaction suggests that, for some, credit reporting doesn’t simply change payment methods—it alters their approach to debt management altogether.

Over 6-in-10 debit cardholders feel that BNPL providers should be reported to credit bureaus. However, Auriemma’s research found that over half worry that doing so will harm borrowers overall.

“These findings underscore that awareness alone isn’t enough to drive behavior change,” says Jonathan O’Connor, Senior Manager of Research at Auriemma Group. “Cardholders are weighing the benefits of building credit against the possibility of negative outcomes, and their choices will depend on how they perceive and balance those risks.”

Generational differences also play a role. Millennials are far more likely than their older counterparts to believe BNPL credit reporting would yield a positive impact on their credit score while Baby Boomers and older, who are less engaged with BNPL overall, are more likely to believe the change will have no impact on their scores.

“Reporting BNPL activity to credit bureaus introduces both accountability and opportunity,” says O’Connor. “Some cardholders will embrace BNPL as a credit-building tool, while others will treat it more cautiously, changing how and when they choose to borrow. But for many, the biggest change will come only once they fully understand how BNPL activity affects their credit profile.”

Want to learn more about Buy Now, Pay Later? Auriemma has been capturing trend data about BNPL offers, enrollment, providers and more on a quarterly basis since 2019. 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 June 2025 among 802 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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Cardholders Still Prefer Human Support Over AI—Especially for Fraud, Disputes, and Complex Issues

(New York, NY) Even as artificial intelligence (AI) tools grow more sophisticated, cardholders still want a human on the line when it matters most. Auriemma Group’s latest issue of Mobile Pay Tracker reveals that despite the rise of chatbots and generative AI (GenAI) tools like ChatGPT, live agents remain the most used customer service channel, especially for complex or sensitive issues like fraud, disputes, and multi-step problem resolution.

“In moments that require trust, empathy, or judgment, cardholders continue to rely on people—not bots,” says Jonathan O’Connor, Senior Manager of Research at Auriemma Group. “Digital tools offer convenience, but trust is still earned through human connection. Issuers who balance automation with meaningful service support will be best equipped to meet cardholder expectations.”

Interactions with live agents—whether by phone (40%), chatting by website or app (32%), or in-person (27%)—outpaced AI-based communications within the past 12-months. Only 21% utilized a chatbot or virtual assistant, and even fewer interacted via AI-based text messaging or with an interactive voice response (IVR) system over the phone (13% each). While automation can streamline simple tasks, the findings show that cardholders still lean more heavily on human support.

This distinction is especially evident in support preferences. Even as digital tools expand, cardholders still favor human support for nearly all service interactions, especially those involving complexity, risk, or disputes. Nearly 9-in-10 cardholders prefer human support for multi-step issues and to identify or resolve potential fraud. Automated support is more welcome for simpler tasks, like resetting passwords or replacing damaged cards.

“AI is not an absolute replacement for human support,” says O’Connor. “While many issuers are exploring how GenAI—and agentic AI in particular—can transform their servicing capabilities, they must caution against removing too much of the human element. When trust and empathy matter, cardholders still want to speak to a person.”

While some (22%) believe AI-based customer service solutions improve overall service quality, nearly twice as many (41%) say they reduce it—signaling a potential backlash if providers over-automate. This is particularly relevant as agentic AI models become more advanced and conversational. Though they may appear human-like, savvy cardholders may find the interaction off-putting if they realize they are not talking to a human (or are not told up front), especially in situations that require reassurance, discretion, or accountability.

As issuers pursue cost efficiencies through automation and AI, these findings serve as a reminder that not every support interaction should be digital-first. Getting the balance right is key—not just for service satisfaction, but for long-term loyalty.

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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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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