Credit card customers focusing on rewards
04/09/2006
Credit card customers are focusing on the long-term benefits of reward cards and beginning to ignore short-term offers, it has emerged.
Take-up of reward cards is highest among the over-50s, but 21 per cent of the nation has cash-back reward scheme credit cards in total, according to a new study by the Morgan Stanley Credit Card.
The research suggests that zero per cent credit card offers are becoming less popular, with 17 per cent of UK cardholders having them.
Additionally, women are more likely to have a retail reward card than men - 17 per cent compared to 12 per cent, the research indicates.
Patrick Muir, marketing director for the Morgan Stanley Credit Card, says: "We are seeing a shift in the dynamics of the credit card market as cardholders wise up to the long-term benefits of reward cards and turn their backs on short-term offers.
"We have found that an increasing number of our customers are using their credit cards for everyday purchases such as groceries and petrol to benefit from cash-back and rewards, with our average cardholder redeeming £105 every year."
In related news, NatWest and the Royal Bank of Scotland have announced that they will no longer be issuing credit card cheques.
The payment method has been criticised recently by a number of consumer groups because they encourage borrowing.
Take-up of reward cards is highest among the over-50s, but 21 per cent of the nation has cash-back reward scheme credit cards in total, according to a new study by the Morgan Stanley Credit Card.
The research suggests that zero per cent credit card offers are becoming less popular, with 17 per cent of UK cardholders having them.
Additionally, women are more likely to have a retail reward card than men - 17 per cent compared to 12 per cent, the research indicates.
Patrick Muir, marketing director for the Morgan Stanley Credit Card, says: "We are seeing a shift in the dynamics of the credit card market as cardholders wise up to the long-term benefits of reward cards and turn their backs on short-term offers.
"We have found that an increasing number of our customers are using their credit cards for everyday purchases such as groceries and petrol to benefit from cash-back and rewards, with our average cardholder redeeming £105 every year."
In related news, NatWest and the Royal Bank of Scotland have announced that they will no longer be issuing credit card cheques.
The payment method has been criticised recently by a number of consumer groups because they encourage borrowing.
