If cardholders can’t use their preferred payment method — like a specific credit card — they’re increasingly likely to switch to another option, brand, or provider. In fact, 37% of consumers will opt for another credit product when faced with this issue, while 33% will abandon the purchase altogether, according to a report from PYMNTS Intelligence1.
This data is a wake-up call for banks and credit unions striving to capture cardholder spend. It’s not enough to issue a card; aligning with consumer payment preferences is key to remaining top-of-wallet, and a premier loyalty rewards platform can help.
Payment Preferences Are Shifting. Are You Keeping Up?
The 2025 Retail Banking Trends and Priorities Report2, authored by Jim Marous and produced by Q2, highlights the key drivers of success for today’s financial institutions, from elevating the digital experience to expanding real-time payment capabilities. While 52% of institutions rank digital experience improvements as a top priority, only a fraction are actively modernizing their core systems — a disconnect that could cost banks and credit unions cardholder loyalty.²
Today, 62% of financial institutions offer some form of real-time payments, yet only 40% of credit unions have adopted the capability.² The demand for real-time financial experiences highlights the disconnect between consumer expectations and the offerings of financial institutions. With seamless transactions becoming a standard expectation, institutions that delay risk losing everyday spend to more agile competitors.
To stay competitive and meet rising expectations for immediacy, banks and credit unions don’t need to overhaul their systems overnight. For institutions not planning a tech upgrade soon, partnering with a third-party rewards provider is a smart way to start delivering real-time value.
ampliFI’s Real-Time Rewards — including Pay With Points, Fuel With Points, and Checkout With Points — provide point-of-sale payment options and present a quick, low-effort path to satisfying cardholder demand for seamless, rewarding payment experiences.
In 2024, ampliFI saw a 13% year-over-year increase in Real-Time Rewards redemptions, including:
- 17% rise in Pay With Points redemptions
- 14% rise in Fuel With Points redemptions
- 5% rise in Checkout With Points redemptions
The takeaway? Point-of-sale rewards align with cardholders’ desire for real-time financial experiences and can help keep your rewards card as their preferred payment method.
Preferred Payments Meet Reward-Driven Engagement
A well-structured rewards program does more than incentivize spending; it reinforces habit and brand affinity. Reward-seeking consumers tend to remain within the credit ecosystem when faced with payment obstacles, meaning a competitive loyalty program can help keep your card in active rotation, even when faced with payment friction.
Here’s how banks and credit unions can drive engagement and keep their card top-of-wallet through rewards:
Real-Time Rewards – Offering Real-Time Rewards as part of your holistic redemption catalog aligns with the consumer demand for point-of-sale payment options. It also offers banks and credit unions a new channel to engage cardholders in the moment.
Flexible Earning and Redeeming – Consumers demand choice. Meet this demand by diversifying how they can earn and redeem points, from item-level card-linked offers to point-of-sale redemptions. A diverse, flexible earn-and-burn structure ensures there’s something for everyone.
Integrated Loyalty Experience – Rewards can extend beyond cards, engaging consumers whenever they use your institution’s products or services. Consider designing your loyalty program to reward consumers when they take out a loan or open a new account—recognizing them for choosing your institution above all others.
Financial institutions prioritizing seamless digital experiences and real-time payments rise to the challenge and meet consumer payment preferences. The opportunity isn’t just about retention—it’s about sustained, profitable engagement.
Let’s align your rewards programs with your institution’s goals. Connect with our team by clicking the button below.
Source:
1What Consumers Do When Their Go-to Credit Choice Is Unavailable. PYMNTS Intelligence.
22025 Retail Banking Trends and Priorities Report. Q2.