Where is there Opportunity for Issuers in a K-Shaped Credit Card Market?

(New York, NY) As issuers continue to invest in premium products with richer benefits and elevated annual fees, many cardholders feel caught in the middle—between cards that feel ultra-premium or ultra-basic. According to Auriemma Group’s latest issue of Cardbeat US, what many cardholders are looking for is a middle-market option, and issuers able to provide one could discover an underserved segment of the cardholder population.

Most cardholders believe credit cards place too much emphasis on premium benefits. Six-in-ten (60%) agree that they focus too heavily on premium perks and benefits, while 44% say most cards available today are either too premium or too basic for their needs. At the same time, 57% feel forced to choose between cards with high fees and strong rewards or low-cost cards with limited value.

“Cardholders are telling us the market feels increasingly polarized,” says Jonathan O’Connor, Senior Manager of Research at Auriemma Group. “For many, the choice isn’t between good or bad card offerings—it’s between paying for benefits they don’t fully use or settling for a product that feels stripped down.”

Recent premium card program refreshes— like the Chase Sapphire Reserve —have largely focused on the high-end of the market, with greater annual fees and premium travel benefits. Broader cardholder demand appears to be for lower-fee offerings.

Only 14% of cardholders say they would prefer a card with strong rewards and benefits paired with a high annual fee. By comparison, 32% prefer moderate rewards and benefits with a modest fee, while nearly half prefer a no-fee card with fewer rewards and benefits.

Auriemma’s research reveals a growing demand for non-premium cards. Among the 31% of cardholders who feel cards in market do not meet their needs, the leading reasons are high interest rates, annual fees that exceed the card’s value , and rewards misaligned to their spending habits.

“Many cardholders aren’t looking for more premium benefits—they’re looking for a better balance,” says O’Connor. “Access to sufficient credit, rewards that are easy to redeem, competitive rates, and value that aligns with everyday spending consistently rank above aspirational perks. For issuers, their growth opportunity may not be to move further upmarket, but to build products that better serve the cardholders in between.”

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 in March 2026 among 800 adult credit cardholders. The number of interviews completed 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