The news: Credit card payment volume growth outstripped debit for the first time since 2000, per the Federal Reserve Payment Study.

• Credit card payments grew to 67.1 billion, up 16.2 billion since 2021.
• General-purpose credit cards drove these gains, commanding 96% of all credit card payments, up from 94% in 2021.
• In contrast, private-label card volume fell from 3.1 billion in 2021 to 2.9 billion in 2024.

Why this matters: Credit cards’ value is connecting US consumers, despite some younger consumers’ anxieties about revolving credit. Issuers’ recent efforts to deliver the most rewards-rich premium credit cards for the aspiring affluent are entrenching credit card-forward payment behaviors.  

As more Gen Zers age into creditworthiness, credit card payment volume may accelerate: Banks are finally easing up on one of the longest periods of credit underwriting tightening since the Great Recession.

Recommendation for issuers: To snag more Gen Zers aging into credit card eligibility, issuers need to design card products directed at this cohort’s credit desires.

• Higher limits. 35.7% of Gen Z cardholders said they would use their primary card more often if they had higher credit limits, per a PYMNTS Intelligence report. 
• Card-linked installments. 42% of Gen Zers in January reported using a card-linked installment within the last three months, more than double Boomers’ reported engagement at 20% per a PYMNTS Intelligence report.
• Flexible credentials. 25% Gen Zers want the power to select different financing options—debit, credit, or card-linked installments—at the time of transaction, per a PYMNTS Intelligence report.

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