Modern card issuing platforms to issue 35% of all payment cards by 2029, as banks begin to compete on user experience

A new study by Juniper Research found the number of cards issued by modern card issuing platforms will double from 748 million in 2024 to 1.4 billion in 2029.

Modern card issuing platforms are API driven; enabling issuers to issue payment cards instantly. To stay competitive against agile digital-only banks, traditional banks must adopt modern card issuing platforms to respond to rapidly changing consumer trends and improve user experience.  

As the number of payment methods available to consumers increases, the report predicted card issuers will face rising competition to remain ‘top-of-wallet’ for users. The cardholder personalisation services offered by modern card issuing platforms, such as smart PIN and personalised graphics, are anticipated to provide a key differentiation point against services launched by competitors.

Furthermore, the ability to customise which cards are issued will enable financial institutions to meet emerging regulations that necessitate accessibility services, including the European Accessibility Act. For example, modern card issuing platforms will ease the issuance of cards with features like voice payment cards for the visually impaired.

The report identified digital-first issuing, where a digital card is provisioned immediately while the physical card is in transit, as being beneficial to aiding banks in modernising offerings. This approach boosts card activation rates and enables customers to start making purchases immediately; helping cards remain a valuable proposition in the face of competition from A2A (Account-to-Account) payments. Issuers who fail to offer this will struggle to remain competitive.

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An extract from the new report, Global Modern Card Issuing Platforms Market 2024-2029, is now available as a free download.