The U.S. consumer economy is becoming increasingly divided, with affluent households driving a disproportionate share of spending while other consumers face growing financial pressure. According to the Bank of America Institute, the top 10% of U.S. households by income now spend nearly as much on discretionary purchases as the bottom 70% combined. Overall, the wealthiest 10% spend more than the bottom 40%.
At the same time, credit cards are taking a larger role in consumer payments. U.S. credit card payments added 16.1 billion transactions between 2021 and 2024, compared with 13.9 billion additional debit transactions, according to the Federal Reserve Board. It marked the first three-year period since 2003 in which credit transaction growth outpaced debit.
However, increased credit usage is occurring alongside financial stress. Credit card balances 90 or more days delinquent increased from 12.2% in Q2 2025 to 12.9% in Q2 2026, while total credit card debt reached $1.263 trillion. Inflation, tariffs, geopolitical uncertainty, and labor market concerns are also contributing to more cautious consumer behavior.
These dynamics are intensifying competition for affluent customers while accelerating changes across payments, credit card rewards, and loyalty strategies.
Five Key Takeaways
Why It Matters to Customer Loyalty Leaders
Loyalty360 Perspective
The growing divide in consumer spending reinforces a trend Loyalty360 continues to see: brands are becoming more sophisticated in identifying, understanding, and engaging their highest-value customers. With the top 10% of households now accounting for nearly as much discretionary spending as the bottom 70%, competition for these consumers will only intensify.
At the same time, Loyalty360 sees a growing convergence between payments, customer experience, and customer loyalty. How customers pay increasingly influences the rewards they earn, benefits they receive, and their overall experience with a brand. Credit card and co-brand programs are an integral part of this equation, and loyalty leaders need to be cognizant of how quickly the payments landscape is changing.
The credit card market demonstrates this shift. American Express, Citi, and Chase have refreshed premium portfolios with travel, dining, wellness, and experiential benefits as they compete for affluent consumers. Meanwhile, fintech providers such as Cash App, Klarna, and Affirm are expanding payment flexibility for consumers focused on affordability and managing everyday expenses. These developments point to an increasingly segmented payments market built around very different customer needs.
For brands, payment strategy can no longer be considered separately from customer experience and loyalty. Credit card rewards, co-brand partnerships, alternative payment methods, and flexible payment options can influence where customers shop, how they engage, and how they perceive value. They can also provide valuable behavioral insights that help brands better understand and personalize the customer relationship.
Loyalty leaders should also be cautious about focusing exclusively on affluent customers. Premium rewards can quickly become commoditized as competitors match points, credits, and benefits. For consumers under greater financial pressure, practical benefits such as cash back, flexible redemption, personalized offers, and everyday value may be more relevant and effective at building engagement.
The opportunity for loyalty leaders is to understand payments as an increasingly important component of the broader customer relationship. As payment behaviors, credit products, and consumer expectations evolve, brands that connect their payments, customer experience, and loyalty strategies will be better positioned to deliver relevant value, differentiate their programs, and build stronger customer relationships.