KUBRA Research Reveals Latest Credit Card Trends for Bill Payments
June 6, 2025
Initially, those little plastic cards in our wallets were only used in emergencies. Maybe your car broke down, and you didn’t have quite enough money in your bank account to pay for it. Or the cash in your wallet was no match for that fancy restaurant you wanted to try. Things couldn’t be more different now. We pull our credit cards out to pay for daily purchases like groceries, use them for our online purchases, and even to pay our bills. But how and when do consumers use credit cards for bill payments—that’s what KUBRA set out to find out.
KUBRA conducted research on the use of credit cards for bill payments to better understand consumer preferences, habits, and barriers. Sponsored by American Express, the study explores evolving payment behaviors and opportunities to enhance the bill payment experience.
The Hybrid Approach To Paying Bills
Everyone has their own habits for paying bills, so it’s impossible to paint everybody with the same brush. Having said that, our research revealed that 52% of surveyed consumers use credit cards to pay some of their bills. They take a hybrid approach, picking and choosing which bills they pay with credit cards and which they pay using alternative payment methods, like bank transfers (ACH), debit cards, or mobile payment apps. Bank transfers are the most common alternative to credit cards at 62%, with debit cards closely behind at 56%. This suggests a preference for direct payments, possibly motivated by convenience or a desire to avoid accumulating debt.
Credit Card Usage Trends
For subscriptions like streaming services, 59% of surveyed users rely on credit cards to pay their bills, while 54% use them for internet and phone services. There’s a slight drop-off for utilities, with 42% using credit cards, but the most significant decline is in rent and mortgage payments—only 10% pay those expenses using credit cards. This shows that although they see the advantages of this payment method, certain limitations or personal preferences hinder complete adoption.
Notably, 77% of surveyed consumers hold two or more credit cards, which may explain their frequent use for certain expenses. However, personal financial strategies also vary, as seen from the 18% who hold only one card, opting for a simplified approach.
These trends highlight the nuanced adoption of credit cards for various payments. While many consumers embrace their convenience and manage multiple cards efficiently, certain limitations or personal strategies influence their preferences, particularly for larger expenses like rent or mortgages. Understanding these behaviors can help businesses tailor solutions that address barriers and encourage broader adoption.
Barriers to Adoption
Expense is a common reason consumers don’t use or stop using credit cards for bill payments. High interest rates or fees prevent 37% of surveyed respondents from using them, especially if they incur interest charges on a balance or have to pay processing fees from billers. Rising debt levels were another barrier for 23% of surveyed consumers, and 18% stopped using credit cards because they were worried about overspending. There was some concern about security, as 39% of surveyed respondents were uncertain when asked if credit cards are more secure than bank transfers. An additional 25% said credit cards are not more secure than ACH.
Changes in rewards programs caused 21% of surveyed consumers to stop using credit cards, while another 21% stopped because their billers no longer accepted them. Additionally, 11% cited poor customer service as a deciding factor. These findings underscore the importance of addressing both financial and service-related barriers to help ensure credit cards remain an appealing and practical option for bill payments.
Incentives to Drive Adoption
Our research indicates that 66% of surveyed consumers feel that rewards and cashback are strong motivators for encouraging credit card payments. Another is the potential for lower fees or interest-free bill payments, with 48% saying they would use credit cards more for bill payments if these incentives were offered. Since security and fraud protection are top concerns for many consumers, 35% expressed that they would be more likely to use their credit cards for bill payments if they felt more confident that safeguards were in place to protect their personal information.
In addition to incentives and enhanced security, 34% of surveyed respondents cited ease of use, while 26% mentioned automated payment setups (AutoPay) as key reasons for starting or increasing credit card usage. AutoPay provides a seamless way to manage bills, helps ensure on-time payments, and saves consumers time. Billers can help alleviate consumer concerns by educating them on the security measures in place for credit card payments and highlighting the flexibility and control credit cards offer.
Where To Next?
KUBRA’s 2025 research reveals a dynamic shift in how consumers approach credit card use for bill payments, highlighting opportunities and challenges. As credit cards increasingly evolve beyond traditional use cases, their role in bill payments reflects a nuanced balance of consumer preferences, financial strategies, and concerns. The findings highlight opportunities to improve the bill payment experience by addressing key consumer concerns such as fees, debt anxiety, and security concerns. Get further insights into consumer credit card use by reading our white paper, KUBRA 2025 Credit Card Usage for Bill Payments Research.