1.3 billion fee playing cards will likely be issued through digital platforms yearly by 2027 – a pointy incline from the present annual price of 500 million in 2023; in line with the newest research by Juniper Analysis.
Juniper’s newest analysis highlights a rising development that has existed for a while now. Intense competitors between issuers from digital-only banks and fintechs providing digital card companies has enhanced the development that appears inevitable. Digital card issuing platforms are changing bodily fee playing cards.
Digital card issuing platforms are enabling card issuers to create playing cards utilizing an Software Programming Interface (API)-driven method. This sees playing cards immediately delivered – on to digital wallets. Issuers additionally give customers the choice for a bodily card. The brand new issuing technique appears to be like to spice up flexibility, transparency and pace.
As conventional card issuers look to maintain tempo with a rising variety of rivals within the funds area, the plain resolution seems to be to lean into the digital area that’s proving extraordinarily in style amongst customers.
As bodily financial institution branches proceed to shut, not solely within the UK and Europe however past, digital issuance utterly eliminates the necessity for customers to go to these places to acquire a card. It additionally presents one other channel for banks and monetary establishments to speak with their clients by way of digital means (ie. card info, associated communications), enhanced personalisation and customisation choices, and post-issuance presents.
Innovation is required to remain forward of the competitors
Juniper Analysis additionally launched its ‘Competitor Leaderboard‘ for 2023. The leaderboard was created utilizing a strong scoring methodology and ranked the highest 16 main fashionable card-issuing platforms. The leaderboard accounted for standards such because the completeness of their options and their future enterprise
prospects.
The highest 5 distributors for 2023 have been as follows:
- Thales
- G+D
- FIS
- Fiserv
- Marqeta
These main gamers scored nicely primarily based on their breadth of customisation choices, in addition to numerous clients and capabilities, corresponding to personalisation and monitoring accessible.
To remain forward of the competitors, the analysis means that fashionable card issuing platform distributors should develop options which are straightforward to undertake and deploy, in addition to be certain that the options can combine with present financial institution IT programs and bypass them the place obligatory.
Nick Maynard, co-author of the report, stated: “For issuers, staying related in an more and more tech-enabled banking market is difficult. Enhancing the flexibleness, transparency and personalisation of the cardboard issuing course of is a crucial approach issuers can enhance the person expertise. As such, issuers ought to look to design superior person experiences, leveraging the capabilities that digital card issuing platforms may present.”
