As more households turn to credit cards to manage liquidity and cover everyday expenses, a new set of practical concerns is driving card behavior: Can the card help avoid a missed payment? Can it make balances easier to track? Can it provide enough visibility into available credit and upcoming obligations to help manage an uncertain month?

Those concerns are beginning to reorder what consumers value most in their credit card relationships.

That evidence is clear in “Winning Top of Wallet: How Credit Card Apps Shape Choice,” a PYMNTS Intelligence and Elan Credit Card report examining how consumers use mobile apps to manage spending, payments and engagement across their credit card portfolios. The report found 30% of consumers primarily use credit cards to build credit or extend purchasing power, while another 22% primarily use cards for cash flow management, together outweighing rewards-based usage.

The divide is more pronounced among financially stressed households. Among consumers living paycheck to paycheck and struggling to pay bills, 40% cited credit dependence as their primary reason for using credit cards. Just 11% pointed to rewards.

For a growing share of consumers, credit cards are functioning less like discretionary spending products and more like liquidity management tools.

What Matters Most

That evolution is also changing which app features matter most.

Among cash flow-focused consumers, 31% said scheduling payments or autopay encouraged them to spend more on a card, while 27% cited alerts and reminders. Credit-motivated consumers showed similarly high engagement with tools tied to available credit visibility and payment timing.

Rewards still influence spending behavior, particularly among financially stable households. Half of consumers who prioritize rewards said tracking or redeeming rewards through a mobile app encouraged them to spend more on the card.

But the report suggests that financial stress changes the hierarchy of engagement. As household budgets tighten, rewards become less central than predictability, visibility and control.

That shift helps explain why mobile apps increasingly influence which cards become top of wallet.

Among credit-dependent consumers, 77% said the quality of a credit card app influences which card they use most often. Credit-dependent consumers also reported the highest app adoption levels, with 77% using their primary card’s app regularly or occasionally.

The competition, in other words, is no longer simply about card acquisition. It is about becoming the card consumers rely on to navigate everyday financial management.

Digital Experience Becomes a Financial Retention Tool

The report also suggests that digital experience increasingly shapes retention risk.

Nearly 1 in 4 cardholders said a poor app or digital experience contributed to reduced card use. Among Gen Z consumers, that figure climbed to 45%.

At the same time, 7 in 10 cardholders said app quality influences which card becomes their primary card, underscoring how mobile interfaces are becoming embedded directly into consumer payment behavior.

For issuers, the implications extend beyond app design.

Consumers living paycheck to paycheck hold nearly as many credit cards as financially stable households, meaning financially stressed consumers are not disengaging from credit entirely. Instead, they are becoming more selective about which cards feel easiest to manage and most useful during periods of financial pressure.

Rewards and promotional offers still matter, particularly among affluent and financially stable consumers. But for a growing segment of households, the most valuable card may be the one that reduces uncertainty around balances, payment timing and available liquidity.

In a crowded multi-card market, financial visibility itself is becoming part of the product.

Budgeting apps promise to make it easier to track spending, manage bills and pay down debt.

Financial experts say the best tool is the one people will use.

“I am really interested in the AI financing and budgeting apps,” said Jerry Xia.

What budgeting apps do

Budgeting apps can track spending, monitor bills, set category limits, and manage subscriptions. Some also help users build savings and reduce debt.

“There are tools out there that you can enter things yourself and it will track right on there,” said Bob Ingram, a certified financial planner with Center for Financial Planning Inc. “There are also tools that we can connect right to our bank accounts, right to credit cards and statements.”

Choosing the right app

A search for budgeting apps turns up dozens of options, including Rocket Money, EveryDollar, Albert and Monarch Money.

“It depends on what you are looking for. Do you need a lot of features? Do you need a lot of control?” Ingram said.

Some apps offer free versions, while premium plans often cost $10 to $20 per month.

“Just like any cost, it becomes part of your budget,” Ingram said.

For some users, the added expense is worth it.

“I just realized through the app, I was spending way too much money,” said Ronan Plunkett. “It makes everything super organized.”

A closer look at spending

After hearing Plunkett’s experience, I tried Rocket Money by linking my bank and credit card accounts. The app quickly highlighted spending patterns across dining out, Amazon purchases and recurring subscriptions. It also showed how quickly small purchases can add up.

“You’ll oftentimes talk to folks who say they’re not big spenders and don’t spend a lot,” Ingram said, noting that many are surprised when they look at their income and overall spending throughout the year.

Technology can’t change behavior

Financial planners say budgeting apps provide useful data, but they cannot change spending habits.

“Money behaviors are still money behaviors. And regardless of whether we can track something or not on a budget, we’re still going to have spending decisions driven by emotions and thoughts. And that’s probably not going to change,” Ingram said.

Read the privacy policy

Experts say privacy should be considered before linking financial accounts to budgeting apps.

Before connecting accounts, users should review terms to understand how data is collected, shared, and used.

If the language is difficult, AI tools may help summarize and explain it.

More information on the pros and cons of using finance apps can be found here.

Banking has entered a new phase of transformation that has the potential to remake large swaths of the industry. For much of the past decade, innovation was often framed around modernization efforts such as upgrading legacy systems, improving digital channels, or experimenting with emerging technologies through pilots and limited deployments. Now, the institutions pulling ahead competitively are distinguished by their willingness to explore innovation early and their ability to operationalize it at scale and translate it into measurable business outcomes.

Across the industry, innovation is beginning to reshape the economics and competitive structure of financial services in more tangible ways. Revenue models are evolving. Operational costs are being reconfigured through the strategic integration of artificial intelligence, cloud computing and blockchain. That, in turn, is fundamentally changing how capital is allocated. Risk management is becoming more data driven, predictive and automated. Customer expectations around speed, personalization and accessibility continue to rise as the instant-everything culture takes hold. 

What makes the current cycle particularly significant is that several major technology shifts are unfolding simultaneously and beginning to intersect. AI, real-time payments, digital assets, tokenization, cloud-native infrastructure, embedded finance, and programmable financial systems are increasingly reinforcing one another and revamping how financial institutions operate, deliver services and compete.

These factors compelled American Banker to launch The Most Innovative People in Finance, a new annual ranking that recognizes the top 50 individuals who are driving these massive waves of digital transformation—producing measurable results, shoring up their competitive positions, opening new markets, and, in some cases, redefining the industry.

Leading this year’s list is #1-ranked Vantage Bank CEO Jeff Sinnott for the launch of the U.S.’s first bank-issued stablecoin; followed in the top five spots by Custodia Bank CEO Caitlin Long (#2) for the debut of a tokenized deposit network for community banks; Goldman Sachs CIO Marco Argenti (#3) for developing and deploying the firm’s widespread internal use cases for agentic AI; TD Bank SVP and Chief AI Scientist Maksims Volkovs (#4) for the development of its predictive foundation AI model; and Anchorage Digital CEO Nathan McCauley (#5) for becoming the issuer of Tether’s U.S.-regulated stablecoin USA₮.

The methodology used to select the 50 individuals is based on quantitative and qualitative factors encompassing leadership, investment in technology innovation, and number, size and impact of digital transformation initiatives over a single year (2025) and three-year time horizon, including internal cost efficiency gains and/or new revenue generation, and, where applicable, impact on the industry. American Banker also considered the role that the individual played in driving digital transformation initiatives in 2025, percentage of technology budget allocated to new innovation projects, products and initiatives, specific funding amount allocated to digital transformation initiatives annually, acquisitions and partnerships initiated to advance the bank’s innovation, impact on creating an internal culture of innovation, and number of patents held in their name.

Why does recognition of outstanding leadership in innovation matter now more than ever? 

Consider that AI sits at the center of much of the transformative change—with advanced forms of AI increasingly coordinating workflows, monitoring transactions in real time, supporting liquidity management, identifying anomalous behavior, and assisting with operational decision-making across multiple functions simultaneously. 

At the same time, the movement and representation of value itself is changing, with stablecoins, tokenized deposits, blockchain-based settlement systems, and digital-asset infrastructure evolving from experimentation into broader commercial use cases. 

As such, real-time payment networks, richer transaction data standards, embedded financial services, and intelligent payment routing are transforming payments into a central layer of customer engagement and commercial activity. 

Underpinning many of these developments is a broader modernization of banking infrastructure. Cloud-native architecture, API-driven platforms, and modular technology environments are driving adaptability, data accessibility, ecosystem connectivity, and the ability to integrate intelligence directly into operational workflows. 

This period of structural change is altering the competitive dynamics of the industry, requiring leadership that understands when to invest, where to modernize, which risks are worth taking and how to aggressively reposition their institutions for the future.