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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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