The Top-of-Wallet Battle: Key Strategies for Credit Card Marketers
In a fiercely competitive credit card market, the true prize is not merely customer acquisition – it’s achieving the coveted “top-of-wallet” (TOW) status. New research reveals just how crucial this position has become for issuer revenue and provides actionable insights for financial services teams looking to elevate their card acquisition and engagement strategies.
The Value of a TOW Position
When customers consistently select your card first – at point-of-sale, online checkout, or via mobile wallet – this top-of-wallet position drives measurable business impact that extends far beyond brand equity. This preference directly affects transaction volume, wallet share, and customer lifetime value (CLV), among other critical performance metrics.
According to PYMNTS Intelligence’s latest research, primary cards generate nearly 60% more revenue than secondary cards. The numbers paint a clear picture: primary cards carry an average monthly balance of $1,903, compared to just $1,202 for second-place cards, and $929 for those with third position usage.
Even more compelling, consumers with three or more cards appear to concentrate their spending on their primary card rather than evenly. In fact, 46% of cardholders with three or more cards use their primary card multiple times a week, compared to just 37% of those with two cards.
This concentration creates a significant advantage for issuers who secure the top position in consumers’ wallets, as the research shows that 78% of cardholders have at least two cards, and 49% have three or more. Again, that TOW position is essential.
Generation-Specific Card Utilization Patterns
As described in Media Logic’s 2024 Media Insights Survey, understanding generational differences is key for targeted marketing strategies. New data insights (PYMNTS) show that:
- Gen Z and Millennials have fewer cards on average but rely more heavily on their primary cards. Gen Z cardholders use approximately 30% of their credit limit, while Millennials use 27%—significantly higher than Gen X (19%) and Baby Boomers (16%).
- Millennials spend the most in dollar terms, with an average primary card balance of $2,188 monthly.
- Generational usage patterns differ significantly. While 45% of baby boomers primarily use their cards for everyday purchases, only 34% of Gen Z do the same. Conversely, Gen Z cardholders are twice as likely as boomers to use their primary cards for bill payment (18% vs. 9%).
These distinct patterns should inform both acquisition targeting and product feature development for financial services marketers looking to secure top position with specific demographics.
What Drives Primary Card Selection?
Trends indicate that there are a few clear motivating factors that determine which card rises to primary status:
- Rewards and discounts stand out as the top factor overall, cited by 48% of cardholders as a key consideration and by 31% as the most important reason.
- Credit limits are the second most significant factor, with 27% naming it as important to their primary card selection.
- Financial history building ranks third (26%), followed by customer service quality (24%) and lower interest rates/fees (20%).
It is important to note, however, these priorities can shift based on how consumers typically use their cards. For example, card users that use credit mainly for everyday spending value reward incentives. Conversely, clients who use credit for emergency expenses only will focus most on card interest rates. For those using bill payment options, security features are paramount. This underscores why issuer segmentation and product positioning are critical—what appeals to one cardholder may have a minimal impact on another.
Strategies to Increase Card Usage
For organizations looking to boost primary card engagement, the research by PYMT highlights two particularly effective approaches:
- Increased credit limits are still the most powerful lever, with 33% of cardholders saying this would increase their primary card usage.
- Enhanced payment flexibility and control shows significant potential, especially with younger demographics:
- Nearly half (48%) of Gen Z cardholders would use their primary card more if they could opt for various payment options at point of purchase.
- 41% of millennials showed similar interest in payment flexibility.
- This stands in stark contrast to baby boomers, where only 8% expressed interest in such features.
The payment flexibility option—allowing cardholders to choose between paying in monthly installments, paying at statement close, or paying immediately from a linked account—represents a particularly compelling opportunity for issuers targeting younger demographics.
The Bottom Line
The battle for top-of-wallet status has never been more critical for credit card issuers. With consumers concentrating spending on their primary cards, especially those with multiple cards, securing this position translates directly to revenue.
By understanding the distinct motivations and usage patterns across demographic segments, financial services marketers can develop targeted acquisition strategies, optimized product features, and compelling value propositions that resonate with their priority audiences.
As consumers increasingly seek both rewards value and payment flexibility, issuers who can deliver both stand to gain significant market advantage in the competitive credit card landscape.
