The loyalty race has new rules
Top-of-wallet once meant the credit card customers reached for first. But that definition is changing fast. Today’s consumers — especially younger generations — are shifting toward debit, valuing control, transparency, and real-time money management over credit limits and points. For enterprises, that shift opens a huge opportunity: Co-branded debit cards that meet customers where they are, spending their own money.
Debit is rising — and it’s not slowing down
Debit use has overtaken credit in everyday purchases, with Gen Z and Millennials leading the charge. For many, debit isn’t a fallback, it’s a lifestyle choice tied to budgeting, avoiding debt, and having real-time visibility into spending. As credit card delinquencies climb and approval rates fall, debit cards are becoming the true default payment method.
- 57 percent of U.S. adults prefer debit over credit for everyday purchases (PYMNTS).
- 70 percent of Gen Z say they use debit as their primary card (Morning Consult).
What top of wallet means now
Being top of wallet is about more than physical placement — it’s about mental preference and habitual use. With debit, brands have new ways to achieve that: linking rewards directly to real spending, connecting loyalty accounts to debit rails, and offering instant gratification that credit-based programs can’t match.
Debit’s always-on nature means the card is used daily, keeping your brand front and center in the customer’s financial flow.
What’s next is now: Co-branded debit
Credit-based co-brands are limited by underwriting and customer eligibility. Debit cards, on the other hand, remove that barrier entirely. Any customer with a bank account or wallet can participate, even those who are credit-averse or underbanked.
With branded debit, companies can:
- Reach younger, underserved, or credit-averse segments.
- Reward customers for spending and saving within a company’s ecosystem.
- Build engagement and frequency through everyday spending.
- Reduce interchange costs and own more of the customer experience.
Everyday use = Everyday engagement
Every swipe is a brand interaction, and every deposit is an opportunity to earn or save. Brands that integrate debit into their customer strategy move from occasional engagement to continuous presence.
Rewarding debit activity (spend, deposits, or even balance maintenance) turns a company into part of the customer’s financial routine, the true meaning of “top of wallet.”
It starts with the right partner
Consider the right infrastructure for a debit program. It doesn’t have to be difficult, involve scores of teams, or take a long time. Fully featured card program managers offer one-stop-shop to offer debit quickly:
- Regulatory expertise to manage KYC, fraud, and compliance.
- Program orchestration that connects payments, rewards, and customer data.
- Financial technology integration that makes debit issuance, balance management, and funding seamless.
Debit will define the next level of customer engagement and loyalty. As consumers seek transparency, control, and real-time value, companies that embrace debit will win not just more transactions, but more trust. By becoming part of how customers spend, save, and earn every day, brands can secure a permanent place in their financial routines, owning both everyday engagement and the coveted top of wallet.
