7 in 10 consumers use ‘financial gymnastics’ to maximise rewards

Credit cards remain to be the top choice, with 47% saying that this drives their usage decisions. 

Seven in 10 affluent consumers like to closely manage their money, with 48% even using “financial gymnastics” to maximise rewards, according to Mastercard.

These consumers, who are in the top 10% of household incomes domestically, use multiple payment options, such as credit, debit, and prepaid cards, or alternative payment methods, for different transactions, like credit for travel or debit for daily necessities. 

Credit cards remain top of affluent consumers’ wallets, with 47% saying that perks, such as cashback, air miles, and shopping points, drive usage decisions, whilst 31% prefer credit for making them feel valued, and 27% favor credit because of the purchase protection it offers. 

Affluent consumers contain more credit cards and more payment methods overall than that of mass consumers. In the Asia-Pacific (APAC) region, affluent consumers use even more payment methods, with an average of 7.5 per person.

In comparison, debit cards are the preferred payment method for mass consumers, especially when buying daily necessities. 

The preference for debit is particularly evident in Australia (83% using debit vs 58% using credit) and India (85% using debit vs 64% using credit), whilst Hong Kong leans more on credit (79% vs 42% using debit).

“And while ambition has always been a core trait of the affluent audience, the difference is that nowadays they work to live, not just live to work, reflecting a departure from previous norms,” said Sandeep Malhotra, executive vice president, Products & Innovation, Asia Pacific, Mastercard.

“The financial institutions that best serve this demographic recognise these characteristics and find valuable ways to support their customers’ financial, professional, and personal progression,” Sandeep added. 

Illustrating this, in APAC, Australia’s affluent are prioritising travel (58%) over career (19%), whilst India’s affluent are focusing on both pursuits (48% career and 56% travel). 

Hong Kong comes in at the middle at 30%, concentrating on career and 40% prioritising travel.

Globally, to improve their financial situation, the study found that 38% of affluent consumers are early adopters of new financial technology (fintech) whilst only 25% of mass consumers are.