Younger Cardholders Tell Issuers What Would Get Them to Use Their Cards More

Issuers can invest in faster, more precise credit decisions, but those improvements alone may not persuade customers to change how they pay. Cardholders need to see a benefit they can understand and trust, whether that means choosing how to repay a purchase, receiving credit terms suited to their circumstances or understanding why a credit decision was made.

The latest edition of the Future of AI Credit playbook series, “Credit That Meets the Moment: What AI-Powered Credit Means for Customers,” examines how advances in credit technology can translate into benefits for cardholders. Real-time data, tokenization and automated decisioning can help issuers assess individual transactions and offer more flexible credit options. For customers, that could mean choosing an installment plan after making a purchase or accessing credit terms that respond to changes in their financial circumstances.

Research points to demand for greater repayment flexibility. JD Power’s 2026 U.S. Buy Now Pay Later Satisfaction Study found that 52% of customers using a fixed-payment plan tied to their credit card chose that option after making the purchase, compared with 48% who chose it at checkout. The study also found that 37% of U.S. consumers had used buy now, pay later (BNPL) in the preceding 90 days. Separately, Adobe reported that BNPL accounted for $20 billion in online spending during the 2025 holiday season, up 9.8% year over year.

More comprehensive financial data could also help lenders assess consumers whom traditional credit scoring cannot adequately evaluate. The Federal Reserve reports that roughly 32 million U.S. adults cannot be scored using conventional credit data. Experian estimates that its Lift Premium model, which incorporates rental and utility payments and cash flow data alongside traditional credit history, could generate scores for 96% of U.S. adults compared with 81% using conventional data alone.

Greater access must also come with clear explanations. The U.S. Consumer Financial Protection Bureau (CFPB) and the United Kingdom’s Financial Conduct Authority have addressed the need for consumers to understand AI-assisted credit decisions. Research published in the journal FinTech also links explainability to fairness and consumers’ ability to challenge decisions.

These capabilities could influence which cards consumers choose to use. PYMNTS Intelligence research finds that 40% of millennials and 48% of Gen Z consumers say they would use their cards more if they could select a repayment plan at the point of sale rather than rely on a fixed structure established at account opening. For issuers, the opportunity is to turn investments in AI credit into options cardholders can understand, control and use.

About the Playbook

The Future of AI Credit playbook series, a collaboration with Thredd, looks at AI credit from the cardholder’s side, where the payoff is simple: Pay how you want, on terms that fit the purchase, with a clear reason behind every decision. That is what turns back-end infrastructure into a card people actually reach for.