The news: Mobile app experience is becoming a key differentiator in retaining younger cardholders, per a PYMNTS Intelligence and Elan report. 

• 66% of Gen Zers said mobile app quality was very or extremely important to keeping their card loyalty.
• 63% of millennials said the same.

Why this matters: Gen Z cardholders are hard to retain. The cohort is nine times more likely to switch their primary credit card within the next 12 months than boomers. 

Mobile apps make it easy for consumers to manage their cards, making it a tool issuers can use to combat Gen Z cardholder flight: 41% Gen Zers called it a key reason why they didn’t switch their primary credit card to competitor—over double the rate of boomers. 

31% of Gen Zers who switched credit cards said they were drawn to a competitor with stronger mobile experience. 

Implications for issuers: Mobile app effectiveness suggests that issuers need to make their app onboarding experience as UX as simple as possible to maintain Gen Z loyalty. Beyond mobile app experience, issuers should also look to compete on rewards and credit lines, which ranked as the top three reasons card switchers changed their top-of-wallet card, per PYMNTS Intelligence.

• 38% of card switchers cited better ongoing rewards rates as their reason for changing their primary card.
• 36% said higher credit limits drove their switch
• 30% said a sign-up bonus or welcome offer convinced them to change their top-of-wallet card.
• And 26% state travel benefits motivated their change in card loyalty.

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