Cashback credit cards “top reward”

Cashback on credit cards is the most popular reward option for consumers, with 70 per cent of those switching for rewards choosing it, Morgan Stanley claims.

Another 21 per cent of people were interested in retail reward offers and five per cent showed a preference for products offering travel perks.

According to the provider’s report, loyalty and reward schemes are becoming increasingly important for customers and represent the most important consideration for 29 per cent of cardholders who have recently switched or are planning to do so.

This means that reward programmes offering bonuses such as cashback are not far behind interest rates (31 per cent) as the primary concern for consumers.

Patrick Muir, marketing director of Morgan Stanley consumer banking, said that cards offering reward schemes were becoming increasingly popular in a marketplace where repayments are currently increasing.

"With the majority of people paying off their credit cards in full every month, using a credit card with a reward scheme really makes sense," he commented.

"With focus shifting away from short-term offers, the popularity of reward schemes is no surprise."