46% of Cardholders Are Proactive Deal Hunters

The world of credit card rewards is getting a much-needed makeover. Forget the tired points-and-perks model. A new report from PYMNTS in collaboration with Banyan reveals that relevance is the new currency for cardholder engagement.

“Beyond Points and Perks: How Relevant Benefits Drive Cardholder Engagement,” a January 2025 report, dives into the nuances of what actually motivates consumers to use their credit cards and, crucially, redeem their rewards. It’s not just about the points anymore; it’s about making those points, discounts and offers feel personal and easy to use.

The report surveyed 2,826 U.S. consumers, and it turns out that a significant number of cardholders are not fully engaged with their rewards programs. This isn’t for lack of interest; it’s because the programs often fail to meet basic user needs. The key to unlocking greater engagement lies in personalization and ease of access.

Here are three takeaways from the study:

Forget the idea of passive consumers waiting for rewards to drop into their laps. Nearly half (46%) of card-linked offer users proactively hunt for deals. This is not a homogenous group: Gen Z consumers (65%) and parents (54%) are the most actively engaged deal seekers.

This indicates that issuers need to step up their communication strategies by making offers more easily discoverable and targeting specific demographics. It’s not enough to send out generic emails; issuers need to meet these active users where they are, whether it’s on their app, website, or through social media influencers. These deal hunters also are more likely to check their credit card provider’s website or app regularly.

The report unequivocally states, “The ease of discovering and using credit card-linked rewards influences whether cardholders take full advantage of benefits or limit their own engagement.” A whopping 75% of cardholders say that ease of access makes card-linked offers more appealing.

When the redemption process is clunky or difficult to navigate, consumers disengage. In fact, 55% of cardholders who report that redeeming rewards is easy actively used most or all of the benefits available to them. Conversely, 56% of cardholders who do not fully utilize their card benefits cite inconvenience as a key reason.

This data underscores the critical need for card providers to streamline their reward redemption processes and make them intuitive for all users.

It’s not just about ease; it’s about making rewards feel relevant to the individual user.  Seventy-four percent of cardholders say that personalization factors, such as the offer applying to a purchase they planned to make, make card-linked offers more appealing.

The report found that consumers are more likely to redeem more often for merchant-specific and product-specific discounts than general rewards. Specifically, cardholders redeeming for merchant-specific discounts average 6.9 redemptions annually, compared to just 4.4 for general reward redeemers. Those satisfied with merchant-specific discounts also tend to use their benefits to the maximum. This shows the power of aligning rewards with meaningful and impactful purchases that resonate with individual spending habits.

The “Beyond Points and Perks” report reveals that card issuers need to move beyond a one-size-fits-all approach to rewards. By prioritizing ease of access and personalization and by offering diverse, multichannel communication strategies, card providers can foster greater engagement and loyalty from their customers.

It’s not about having the most points; it’s about having the right points, offered in the right way, at the right time.

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