What is credit orchestration?

A flexible credential is a single card that adapts across debit, credit, and BNPL at checkout, switching funding sources per transaction — no multiple cards needed. These run on platforms like Marqeta.

What is the 2026 State of Credit Report?

It is a research report from Marqeta based on a survey of 4,000 consumers and 1,000 SMBs across the US and UK conducted in Q1 2026, examining how credit behavior is shifting toward portfolio-based, multi-product approaches.

Why are non-banks gaining ground in credit?

Comfort with non-bank financial services has hit an inflection point — 66% of SMBs are open to non-banks, rising to 83% among those planning to apply for credit cards, with the strongest appetite among 18–44 year olds and growth-stage SMBs.

Why is credit no longer considered a single product?

Consumers and SMBs are assembling portfolios of tools across providers and payment methods, choosing intentionally for every transaction rather than relying on one product.

What are flexible credentials and why do customers want them?

Flexible credentials are single cards that adapt across debit, credit, and BNPL at the point of purchase, allowing customers to consolidate existing payment methods rather than add to them. 48% of consumers aged 18 to 44 and 71% of consumers who carry multiple cards are interested in them.

What happens to consumers who are denied a credit card application?

63% of denied applicants are not offered any alternative product, yet 76% say they would undergo a credit check to upgrade when ready, representing a graduation signal most providers are not acting on.

How are growth-stage SMBs approaching credit differently than expected?

Rather than trading up from one product to the next, growth-stage SMBs are adding products as their needs evolve. 34% have already moved between credit products, and 64% want a clear path from entry-level to advanced offerings.

Are younger consumers and growth-stage SMBs aligned in their credit preferences?

Yes. Both cohorts signal the same demand for flexibility, with 48% of consumers aged 18 to 44 and 82% of SMBs planning to apply for credit cards expressing interest in flexible credentials.

What does the convergence between flexibility and openness to non-banks mean for providers?

Consumers interested in flexible credentials are 2x more comfortable with non-banks, and SMBs planning to apply for credit cards are 1.5x more comfortable with non-banks, creating a strategic window for non-bank providers and a competitive shift for incumbents to respond to.

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2026 Flexible Credit Orchestration: Trends Shaping Consumer and Business Needs

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Introduction

Credit is no longer a single product, it is a portfolio of layered, overlapping tools that consumers and businesses actively manage, combine, and switch between. Flexible credit orchestration refers to the coordination of multiple lending products, data sources, and servicing systems across channels and partners so that credit can be provided whether someone applies directly, through an app, or at a merchant checkout. Marqeta's 2026 State of Credit research, surveying 5,000 consumers and SMBs across the US and UK, shows how dynamic credit behavior has become. From multi-card consumers stacking BNPL on top of revolving credit to growth-stage businesses managing multiple providers, the data indicate that static, single-product credit programs are falling behind. This article unpacks the trends driving that shift and the infrastructure required to meet it.

Consumer credit behavior trends in 2026

The headline finding from Marqeta's 2026 State of Credit research sets the tone: 66% of consumers own credit cards, 57% of credit card holders hold multiple cards, and 47% of consumers are looking to build their credit history or improve their credit score. These are not passive cardholders. They layer products, compare terms, and move between offerings, treating credit as a dynamic toolkit rather than a fixed utility.

Perhaps the most telling statistic is that 79% of BNPL users continue using BNPL even when they have access to credit cards. Consumers are stacking credit products, choosing BNPL for certain purchase contexts installment transparency and interest-free windows while relying on revolving credit for other purchases. As payment methods multiply, merchants face a growing fragmentation problem, and BNPL alongside digital wallets continues gaining traction in 2026. Consumer behavior is driving the orchestration trend, not merely responding to it.

Consumer credit behavior, the patterns by which individuals acquire, use, combine, and transition between credit products such as revolving cards, installment loans, and buy now, pay later plans, has never been more complex or more intentional. The 47% actively building credit signals a large population seeking products that help them progress. Providers who recognize this dynamism and design for it will capture the next wave of portfolio growth.

Statistic	Finding
Credit card ownership	66% of consumers
Multiple card holders	57% of card owners
Actively building credit	47% of consumers
BNPL users retaining BNPL with credit access	79%

Small business use of multiple credit products and providers

SMBs are not passive borrowers, they actively manage their own credit stacks. Marqeta's research found that 66% of SMBs work with multiple credit providers, 34% have moved between credit products as their business evolved, and 96% are intentional about payment method selection. These numbers reveal a market segment that manages a portfolio of financial relationships and needs platforms capable of supporting multi-product, multi-provider workflows.

The most active adopters of new credit options are growth-stage SMBs with $1M–$50M in revenue. These businesses have outgrown the startup phase where a single card suffices but have not reached enterprise scale where dedicated treasury teams handle complexity. They need tools that grow with them, and those tools must integrate without added friction.

The operational gap is real. Business finance teams still often rely on paper invoices and slow approvals, yet 2026 will favor faster, safer, and more flexible payment experiences. This disconnect between current operations and rising expectations is an opportunity for modern infrastructure providers. API-first orchestration lets teams add payment service providers without disturbing the live environment, meaning SMBs and the platforms serving them can plug in new credit products without rebuilding existing integrations. Marqeta's API-first issuing and orchestration make it easier for SMBs and their platforms to add new credit products while preserving live integrations.

Revenue Stage	Typical Providers	Product Types	Top Priorities
Under $1M	1–2	Business credit card, line of credit	Speed, simplicity
$1M–$10M	2–3	Cards, term loans, BNPL, expense management	Flexibility, integration
$10M–$50M	3+	Multi-provider cards, commercial lines, AP automation	Cost optimization, scalability, real-time controls

Understanding flexible credentials and their importance for credit cards

A flexible credential is a single payment card or digital token that can switch between funding sources, such as credit, debit, and buy now, pay later, at the point of transaction. It allows the cardholder to choose or automate how each purchase is funded without carrying multiple cards or apps.

The demand signal is clear. Among consumers aged 18–44, 48% are interested in flexible credentials, compared to 23% of those aged 65 and older. This generational divide shows that flexible credentials are a mainstream expectation among demographics that will define long-term portfolio growth.

The consolidation potential is significant. Among consumers interested in flexible credentials:

67% would replace their debit card
71% would replace their credit card
71% would stop using separate BNPL apps

A single flexible credential could collapse three or more products into one relationship, representing considerable consolidation demand. This is the consumer-facing expression of backend orchestration, making the complexity invisible. As embedded finance pushes payments into apps, IoT devices, and platforms, and flexible payment options help merchants meet consumer preferences, flexible credentials become the common interface.

For issuers and program managers, the strategic implications are clear. A flexible credential strategy increases top-of-wallet status, reduces churn to point solutions like standalone BNPL apps or secondary debit cards, and creates richer transaction data for personalization and risk management. Providing this capability requires modern card-issuing infrastructure, the kind of API-first platform Marqeta built when it introduced its credit card platform to help brands design and launch flexible, multi-product credit programs. Marqeta's API-first architecture is designed to orchestrate funding sources and provide credentials across channels at scale.

How a flexible credential routes a transaction:

Cardholder taps or swipes a single credential at point of sale
Transaction details, including merchant category, amount, and cardholder preferences, are evaluated in real time
The orchestration layer selects the optimal funding source, credit, debit, or installment plan
The transaction is authorized and settled against the chosen source

The cardholder sees a unified view across all funding types in a single app

Consumer comfort with non-bank financial services and BNPL providers

The trust environment for financial services has reached a tipping point. According to Marqeta's research, 35% of consumers are comfortable with non-bank financial services. On the SMB side, the shift is more pronounced: 66% of SMBs are comfortable with non-bank financial services, and among those actively planning to apply for credit, that figure rises to 83%.

Non-bank credit is no longer an outlier preference, it is a mainstream expectation.

Segment	Comfort with Non-Bank Providers
General consumer population	35% comfortable with non-bank financial services
All SMBs	66% comfortable
SMBs planning to apply for credit	83% comfortable

The persistence of BNPL reinforces this shift. With 79% of BNPL users continuing to use BNPL even when they hold credit cards, the data show that BNPL has a lasting role in consumer financial behavior. This is not a temporary trend driven solely by credit-constrained borrowers, it reflects a preference for installment transparency and contextual financing.

The infrastructure enabling this trust shift is advancing. Tokenized payments, real-time networks, and digital wallets are becoming primary interfaces for many consumers, and some now use a digital wallet or super-app as their main financial home. The brand a consumer interacts with daily may not be a bank at all, it may be a fintech, a retailer, or a platform.

Non-bank financial services, credit, lending, or payment products offered by technology companies, fintechs, or retailers rather than traditional chartered banks, often delivered through embedded partnerships with licensed banking institutions, must meet or exceed bank-grade security to sustain this trust. Payment-agnostic security is becoming an emerging standard, and a well-integrated risk layer can support strong customer authentication while maintaining privacy controls.

The strategic implication is that fintechs, retailers, and platforms can offer credit products under their own brands if they partner with infrastructure providers that handle compliance, issuing, and risk management behind the scenes. Marqeta partners with fintechs, retailers, and platforms to handle issuing, compliance, and risk so brands can offer credit under their own names. Embedded finance builds loyalty because it meets customers where they already are, inside the brands they already use.

Credit expectations of Gen Z and millennials

Consumers aged 18–44 are the primary drivers of credit innovation adoption. Their 48% interest in flexible credentials is the clearest signal, but expectations run deeper, spanning speed, mobile-first design, personalization, and transparency.

For this cohort, "fast" means instant. Consumers increasingly expect payments to be as easy as tapping a phone, and they want payment tools that are mobile-friendly, automated, and easy to use. A credit application that takes days, a rewards program that requires manual tracking, or a card management experience that lives outside their phone is a dealbreaker. Instant approvals, real-time notifications, and automated rewards are baseline expectations.

The 47% of consumers actively building credit skews toward younger demographics. Many Gen Z and millennial consumers are in credit-building mode, and they want products that help them graduate, from secured cards to unsecured, from lower limits to higher ones, and from basic rewards to premium tiers. Credit providers that design visible progression paths will earn loyalty that compounds over years.

The 79% BNPL retention rate is driven largely by younger consumers who value installment clarity and the absence of revolving interest. Credit providers should consider how to incorporate installment-style features, pay-in-4 and statement splitting, into traditional credit products to compete. Designing credit card rewards for competitive advantage increasingly means thinking beyond points to include repayment flexibility.

Gen Z and millennials also expect credit to appear where they already spend. As SaaS platforms and ride-sharing apps embed financial services into user journeys, younger consumers expect credit to appear inside apps, at checkout, and within platforms, not as a separate banking errand.

Designing effective graduation paths between credit products

Graduation is already happening organically. 34% percent of SMBs have moved between credit products as their business evolved, and 47% of consumers are actively building credit. The question is whether providers are designing for it or losing customers to competitors who offer the next step.

A credit graduation path is a structured progression designed by a financial services provider that moves a customer from an entry-level credit product, such as a secured card or starter line, to higher-tier products, such as unsecured revolving credit, premium rewards cards, or flexible credentials, based on demonstrated creditworthiness and engagement.

Effective graduation paths share four design principles:

Visibility. Consumers and SMBs should see where they are and what comes next. Dashboards, progress indicators, and milestone notifications transform an opaque process into a motivating journey.
Automation. Graduation triggers should be data-driven, based on payment history, utilization patterns, and engagement signals, not manual reviews. The same machine learning infrastructure used for real-time fraud detection can power automated graduation decisioning.
Continuity. The transition between products should be smooth. A customer moving from a secured card to an unsecured card should not have to re-apply, re-enter information, or lose their transaction history.
Personalization. Different customers graduate at different speeds and toward different products. A Gen Z consumer building credit may move toward a flexible credential, while a growth-stage SMB may move toward a higher-limit commercial line with expense management features.

Credit graduation paths require the same modular, API-driven architecture that powers payment orchestration, the ability to swap underlying products, adjust limits, and change terms without disrupting the customer experience. As API-first design helps orchestration grow with a business, it also enables credit programs that evolve alongside their customers.

Marqeta's platform is built for this kind of multi-product credit program design, enabling issuers to configure graduation triggers, swap products, and maintain continuity through a single integration.

Sample graduation path:

Stage	Product	Data Trigger	Typical Timeline
1	Secured card	Account opening, initial deposit	Month 0
2	Starter unsecured card	6+ months on-time payments, utilization under 30%	Months 6–12
3	Rewards card	Consistent spend growth, credit score improvement	Months 12–24
4	Flexible credential	High engagement, multi-product interest signals	Months 18–36

Customer Segment	Recommended Path	Key Products
Credit builders (Gen Z)	Secured → Unsecured → Flexible credential	Secured card, starter card, flexible credential
Established consumers	Rewards upgrade → Flexible credential	Mid-tier rewards, premium rewards, flexible credential
Early-stage SMBs (<$1M)	Business starter card → Line of credit	Starter business card, revolving line
Growth-stage SMBs ($1M–$50M)	Multi-product stack → Commercial line + expense management	Business cards, term loans, AP tools