A retailer that does nearly all of its transactions online has the most popular store credit card.
Amazon wins the store card battle, ranking as the top choice among consumers with store cards (32%), followed closely by Target (30%) and then Macy’s (24%).
That's according to the third annual “Ipsos Retail Credit Survey,” which finds that six out of 10 U.S. adults (62%) have a store card in their wallets – and 30% have two or more. Ipsos Public Affairs conducted the nationwide survey on behalf of Vyze, a cloud-based financial technology company.
Millennials overwhelmingly choose to open store cards with Amazon (48%) and Target (44%), followed by Costco (29%). This is extremely significant as 60% of millennials stated they are more likely to shop with a retailer if they have their store card, the report revealed. Consumers also continue to show loyalty to retailers that they have a store card with, with 40% saying they are more likely to shop at that retailer again.
Despite growing awareness and loyalty, there is room for retailers to improve their credit offerings. The majority (56%) of U.S. adults have never applied for retail financing online or in the store, including 50% of Americans who make over $100,000 a year.
Freedom of choice is also prompting younger shoppers to move away from traditional credit cards. A majority of Gen Z shoppers (52%) and nearly 60% of Millennials are interested in ways beyond a traditional credit card to finance large purchases online. This compares to 42% of overall respondents who are interested in alternative financing options.
Consumers also want the flexibility to apply for financing in any channel. They want to apply for financing both online (43%) and in the store (44%). However, retailers should expect mobile to be a growing channel for credit. Millennials are much more likely to want a mobile application than older generations (16% vs. 1% of shoppers over the age of 55).