Recent research from PYMNTS Intelligence uncovers important insights into how consumers are leveraging credit cards amid rising inflation. The study reveals that 86% of interchange fees contribute to reward programs, and this aspect plays a significant role in consumer spending behavior.

Consumers across various age groups and income levels utilize these general-purpose cards to manage their expenses effectively, particularly for everyday necessities like groceries. With inflation impacting prices, rewards are becoming more attractive to consumers, leading to increased credit card usage.

This emerging trend showcases the dual nature of inflation: while it challenges consumer budgets, it also incentivizes engagement with credit systems that offer benefits. As consumers navigate economic fluctuations, credit rewards could be key in helping households manage personal finances more effectively.

Keep an eye on this evolving topic, as it offers valuable information for both consumers and financial institutions to adapt and thrive in challenging times.