According to a September PYMNTS Intelligence report, 22% of Gen Z consumers who switched their primary credit card used social media or influencer content for research. In contrast, only 1% of baby boomers and seniors relied on these channels for the same purpose.
The data shows that 56% of Gen Z cardholders changed their primary card in the last two years, a rate more than triple that of older generations. Across all demographics, 78 million U.S. cardholders switched their primary cards at least once.
The decision-making process for switchers is rapid, with 71% completing the switch within a month. Furthermore, 38% of switchers considered only the card they eventually chose, while 40% evaluated just one alternative.
While rewards remain the primary driver for switching, digital experience is increasingly significant for Gen Z. Better rewards attracted 35% of Gen Z switchers, while 31% were influenced by a superior app or digital experience.
Financial literacy among younger users is heavily tied to social platforms, with 62% of Gen Z identifying TikTok as a source of financial knowledge as of October 2023. Industry players are responding, such as the Visa and TikTok debit card launch in April.
