2022 Marqeta State of Credit Report: Cost of living concerns weigh heavily on US consumers as new lending options provide significant financial support for many

OAKLAND, Calif.–(BUSINESS WIRE)–According to a new survey released today by Marqueta, the modern global card issuance platform. The company released its 2022 Credit status report that surveyed 4,000 consumers worldwide – including 2,000 in the United States – highlighting consumer sentiment regarding spending trends, as well as consumer experiences and preferences with credit.

Marqueta 2022 Credit status report marks the second time the company has asked consumers around the world about their credit preferences. The new survey found that a growing number of US consumers surveyed said they were struggling with their minimum credit card payments in 2022, rising from 30% of US consumers surveyed in 2021 to 44% in 2022. Fifty-five for percent of U.S. consumers surveyed in 2022 said cost-of-living increases have already made it harder for them to make refunds, while 63% of respondents said concerns about the cost of living and the inflation had caused them to delay a major purchase. Amid growing economic anxiety, credit has proven to be an important lifeline for consumers: 67% of U.S. consumers surveyed said they had relied on credit cards to make ends meet during of the past 12 months, with nearly half of consumers surveyed. globally by Marqeta (48%) saying their credit card had been a lifeline in the cost of living crisis.

“Our 2022 Credit Status The report shows that consumers around the world have had no respite, shifting from concerns over the pandemic to fears over rising inflation and the specter of impending interest rate hikes. And that wears them out,” said Rachel Huber, head of market intelligence at Marqeta. “In this context, credit becomes a more important part of their financial life. But with changing needs and increasing new credit options and alternatives hitting the market, financial institutions and fintechs cannot take their customers for granted.

Despite concerns about the cost of living and interest rates, reported use of credit by survey respondents remained high. The number of consumers surveyed globally with more than one credit card increased by 19% in 2022 (from 52% to 62%). Demonstrating the advantage of being front of the wallet, 87% of consumers surveyed globally said they have a credit card they use more than any other, and 58% of respondents said they have other financial products with their main credit card provider. Despite this, credit card consumers remain malleable and looking for better options: 42% of U.S. consumers surveyed planned to apply for a new credit card in the next 12 months, with 39% of respondents saying they’ve stopped using a card during the same period. . Unsurprisingly, with such high credit commitment, American consumers were laser-focused on their credit score, and 68% of respondents said they were focused on building their credit, with 60% of respondents citing concerns about the impact on their credit score of applying for the new cards.

With adoption rates growing rapidly during the pandemic, Buy Now, Pay Later services made another significant leap in Marketa’s 2022 survey, showing consumers’ continued fascination and engagement with this new lending vertical. . More than two-thirds (67%) of US consumers surveyed in 2022 said they had used a BNPL service, up from 44% in 2021. The BNPL sector remained buoyed by existing tailwinds, while also benefiting from consumer concerns about costs. of life and increases in interest rates.

  • Nearly two-thirds of BNPL users surveyed (64%) said their use of BNPL had increased over the past 12 months.

  • Forty-seven percent of respondents said they would be interested in accessing other financial services through their BNPL provider.

  • Nearly half (49%) of all consumers surveyed said interest rate hikes made lower-cost BNPL interest rates more attractive, while 46% of respondents said they had used BNPL to make ends meet given cost of living concerns.

  • More than 1 in 3 (35%) respondents said they now use BNPL more than credit cards.

“Our survey shows that the U.S. consumer overall is highly aware of their credit options, with more reporting having multiple credit cards in 2022 and engaging with BNPL services in greater numbers,” said Huber said. “In a competitive and increasingly mature market, credit products need to be as personalized and modern as possible, because if today’s consumer is not engaged, they will move on.”

About the 2022 Credit Condition Report

The 2022 Marqeta Credit Condition Survey was conducted by Propeller Research on behalf of Marqeta, surveying 4,079 consumers aged 18-65 (2,048 in the US, 1,025 in the UK and 1006 in Australia).

To download the full report, click here.

About Marqueta

Marqeta’s modern card issuance platform enables its customers to create personalized and innovative payment cards. Marqeta’s platform, powered by open APIs, empowers its customers to create more configurable and flexible payment experiences, accelerating product development and democratizing access to card issuance technology. Its modern architecture provides instant access to a highly scalable, cloud-based payment infrastructure that allows customers to launch and manage their own card programs, issue cards, and authorize and settle transactions. Marqeta is headquartered in Oakland, California, and operates in 39 countries around the world. For more information, visit www.marqeta.com, Twitter and LinkedIn.

Forward-looking statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements expressed or implied by this press release include, but are not limit, quotes and statements relating to changing consumer preferences; increasing consumer adoption of certain digital payment methods, products and solutions; which payment, banking and financial services products and solutions can be successful; technology and market trends; Marqueta’s company; and Marqueta’s products and services. Actual results may differ materially from the expectations contained in these statements due to risks and uncertainties, including, but not limited to, the following: any factors causing concern with changes in business, market, , financial, political and legal; the effect and uncertainties related to the global COVID-19 pandemic on the U.S. and global economies and demand for Marqeta’s services and products; and the uncertainties and direct and indirect effects of the significant military action against Ukraine launched by Russia, including threats of attacks against US financial institutions in retaliation against financial institutions for sanctions imposed against Russia. Detailed information about these risks and other factors that could affect Marqeta’s business, financial condition and results of operations are included in “Risk Factors” disclosed in Marqeta’s Annual Report on Form 10-K. for the year ended December 31, 2021, as such. the risk factors may be updated from time to time in Marqeta’s periodic filings with the SEC, available at www.sec.gov and Marqueta’s website at http://investors.marqeta.com. The forward-looking statements contained in this press release are based on information available to Marqeta as of the date hereof. Marqeta disclaims any obligation to update forward-looking statements, except as required by law..

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