Why the rewards model needs to evolve now

Interchange alone can no longer fund cardholder value. See how the smartest issuers diversify funding, close redemption gaps and prepare for AI-driven commerce.

  • Scale tilts to the top five The five largest U.S. issuers now control more than 70% of credit card purchase volume, leaving regional banks to defend share with sharper, more relevant value.
  • Rewards that go unused Nearly 23% of rewards cardholders redeemed zero rewards last year. When earning and redeeming feel disconnected, loyalty erodes and switching becomes easier.
  • A $200 billion funding shift U.S. CPG trade promotion totals roughly $200 billion a year, largely untapped by card programs. Brand-funded rewards can sustain value as interchange tightens.
  • Get ready for AI agents Agentic commerce could reach $1 trillion in U.S. B2C revenue by 2030. The infrastructure choices you make now decide whether agents select your card.
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