In debit and credit card programs, penetration, activation, and usage are strategic levers that can shape cardholder behavior, improve card usage, and strengthen long-term loyalty. But to move the needle on these KPIs, you need more than a product; you need a value exchange. That’s where loyalty programs come in.
The Framework: Penetration, Activation, and Usage
Let’s break down what each of these key metrics means and how they can help evaluate the health and performance of your card portfolio.
- Penetration: What percentage of eligible consumers have your debit or credit card? This speaks to product adoption and the effectiveness of your acquisition strategy.
- Activation: Among cardholders, how many have used their card at least once? Activation reflects whether your onboarding, communications, or incentives are motivating that critical first transaction.
- Usage: How frequently are active cardholders transacting? Usage indicates the extent to which your card is becoming part of a customer’s daily financial behavior.
These benchmarks tell a story about the performance of your card portfolio. According to Pulse Network’s1 2024 debit performance benchmarks, high-performing issuers typically achieve:
- 84% penetration
- 74% activation
- ~31 transactions per active card per month
These benchmarks are useful for identifying where your program may be underperforming. For instance:
- Low penetration could signal friction in onboarding or account setup.
- Gaps in activation may point to poor cardholder communication or a lack of perceived value.
- Lagging usage may indicate the need for better redemption options, diverse rewards, incentives, or top-of-wallet positioning.
High-performing institutions track these metrics closely to better understand how cardholders interact with their products and capture insights on where to focus efforts to improve engagement and ROI.
Loyalty Levers That Improve Card Usage at Every Stage
With nearly 73% of consumers choosing a card based on the rewards available2, loyalty rewards play an influential role in spending decisions. When structured with purpose, rewards can influence behavior across each stage of the cardholder journey:
| Metric | Loyalty Tactic That Drives It |
| Penetration | Enroll rewards automatically with card issuance |
| Activation | Offer a first-use bonus or welcome reward |
| Usage | Promote ongoing engagement through promotions or real-time redemption options |
A well-designed loyalty program can significantly influence cardholder behavior at every stage of their journey. At ampliFI, we have observed compelling data, aggregated across our client base, that highlights the importance of usage:
- Redeemers spend 87% more per month than non-redeemers
- Retention is 9% higher among redeemers (93.5% vs. 84.1%)
- Redeemers are 3X less likely to lapse (3.6% vs. 13.5%)
Loyalty Program Tactics to Improve Card Usage
First-Use Rewards Drive Activation
Providing an incentive after the first transaction motivates cardholders to take that first step quickly. This removes friction and speeds up the path to activation.
“Tying introductory promotions to spend triggers, limited-time offers, or meaningful choices, empowers financial institutions to create a stronger hook that drives both early activation and long-term loyalty,” says Tom Swanson, Account Executive at ampliFI Loyalty Solutions.
Personalized Structures Increase Card Usage
Cardholders want choices. Giving them more control over how they earn points can deepen engagement and build long-term habits.
Here’s what that looks like at ampliFI:
With Build Your Own Rewards, cardholders select the categories in which they want to earn bonus points, such as gas, groceries, or dining. That flexibility makes rewards feel more personalized and keeps the card at the forefront of everyday spending.
Additionally, ampliFI’s Rewards Wallet enhances the redemption experience with surprise, high-value offers—like Boosted Rewards, a monthly mystery box, and localized deals. Delivered upon redemption and monthly to rewards accounts, these curated rewards make every interaction feel tailored and meaningful.
Together, these features create a more personal and engaging rewards journey that keeps cardholders coming back.
Real-Time Redemptions Reinforce Behavior
In a 2024 survey by Merkle3, 48% of consumers said discounts are the most motivating loyalty reward, more than any other type. Redemption options like Checkout With Points or Pay With Points tie loyalty directly to everyday transactions and meet cardholders in the moment. This reinforces the perceived value of the card and keeps it top of wallet.
How to Measure & Optimize Your Strategy
| Stage | KPI to Track | Loyalty Levers |
| Penetration | % of checking accounts with a card | Instant issuance + rewards enrollment |
| Activation | % of cardholders with 1+ transactions/month | First-use incentives, welcome emails |
| Usage | Avg. transactions/month per user | Real-time rewards, tiered structures |
Use these metrics as leading indicators of loyalty program performance. If activation or usage stalls, that’s your cue to tweak reward delivery, categories, or messaging.
The Takeaway
If you want to boost cardholder engagement, loyalty can’t be an afterthought. When designed well, rewards programs drive measurable results across penetration, activation, and usage, turning a stagnant card into a daily driver of value for both the customer and the institution.
Penetration, activation, and usage metrics indicate where cardholders drop off. Loyalty rewards give you the tools to pull them back in.
Ready to improve card usage? Let’s talk.
Sources:
1PULSE, 3 Strategies to Make Your Debit Program Best-in-Class (2024).
2EMARKETER, Investing in Relationships. Page 6. (2025)
3Merkle, 2024 Loyalty Barometer. Page 11. (2024)