Affluent Consumers Respond to Credit Card Rewards with More Than Card Loyalty

In today’s post recession environment of greater regulations and tighter profit margins, attracting and retaining affluent customers is more important than ever. (For the purposes of this report, Javelin defines the affluent as consumers who earn $100,000 or more a year.) Financial institutions, card issuers, and other payment providers are highly motivated to win over affluent consumers, as their banking and payment behaviors are quite profitable: They have a large number of accounts and payment cards, use their credit cards regularly, are tech-savvy, and are drawn to digital features such as online banking and mobile proximity payments. This report will explore the demographic profile of affluent consumers, present their banking and payment behaviors, and identify ways that banks and payment companies can earn — and keep — their loyalty.

Key questions discussed in this report:

• Who are the affluent consumers in the U.S. today? 
• What payment options do affluent consumers like to use? 
• What type of payment features do affluent consumers want?
• What type of payment rewards can best attract affluent consumers? 
• Are affluent consumers interested in mobile payments? 
• How can FIs earn and maintain the loyalty of affluent customers? 

Companies Mentioned: American Express, Apple, Chase, Discover, Google, MasterCard, Visa

The consumer data in this report are based on information collected from Javelin online surveys that targeted respondents in representative proportions of gender, age, income, and ethnicity, compared with the overall U.S. population:

• A random‐sample panel of 3,200 consumers in October 2015. The overall margin of sampling error is ±1.73 percentage points at the 95% confidence level. 
• A random‐sample panel of 3,000 consumers in September 2015. The overall margin of sampling error is ±1.79 percentage points at the 95% confidence level.
• A random‐sample panel of 6,000 consumers in April/May 2015. The overall margin of sampling error is ±1.27 percentage points at the 95% confidence level.

Javelin defines the affluent, or consumers with a high income, as anyone who reports an annual household income of $100,000 or more.