When it comes to credit card rewards, it’s not all about gas, groceries, and restaurants anymore. Issuers are moving beyond suburban staples to include millennial-friendly categories such as transit and streaming subscriptions.
The trend toward streaming rewards, in particular, is hard to miss, with cards from American Express, Chase and Wells Fargo now featuring streaming as a bonus category. But what’s behind this explosion?
For starters, streaming is wildly popular. As of 2017, more than half of U.S. households subscribed to paid video-streaming services, according to Deloitte’s digital media trends survey. But experts say it’s also about issuers forging early connections with younger consumers and ensuring that they remain customers.
“The strategy is simple: If a consumer opens a credit card when young, the (issuer) can build a long-term relationship with the consumer,” says Logan Allec, a CPA and founder of the financial blog Money Done Right.
MEETING PEOPLE WHERE THEY’RE SPENDING
The Deloitte study notes the percentage of U.S. households subscribing to a paid streaming video service grew from 10% in 2009 to 55% in 2017 — a 450% increase. Consumers subscribe to an average of three such services.
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