SAN FRANCISCO—A new report reveals that consumers are spending much less on their primary credit cards, and that the increasing use of buy now, pay later (BNPL) could be one reason.
According to J.D. Power’s 2022 U.S. Credit Card Satisfaction Study, overall, credit card holders are allotting 42% of their monthly spending to their primary credit cards, down from 47% in 2021 and 2020, and down from 50% from 2019, Digital Transactions reported.
That decline comes in spite of a year-over-year rise of five points, to 810, in J.D. Power’s consumer-satisfaction score for credit cards, Digital Transactions noted in its analysis.
Improvements by card issuers in service, more favorable credit card terms, and mobile and communication factors/subfactors are key reasons for the increase in satisfaction, the study says.
J.D. Power’s scores are based on a 1,000-point scale.
The Culprit
“One culprit for the decrease in card spending, the study says, is buy now, pay later loans, which offer consumers an alternative, and more flexible, financing method for purchases than credit cards,” Digital Transactions said.
The study further found 28% of consumers say they would consider a BNPL loan when making a large purchase.
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