The number of credit cards issued via digital card issuance platforms will exceed 321 million globally by 2027, up from 120 million in 2023.
This is a growth of 170% is based on the advanced digital capabilities, such as digital loyalty schemes and instant issuance, according to a new report from Juniper Research,
Digital card issuance platforms allow card issuers to create cards through an API-driven approach. This allows cards to instantly be delivered to digital wallets.
The report, ‘Credit Cards Strategies: Innovation Analysis, Digital Transformation & Market Forecasts 2023-2027,’ claims credit cards will account for over $9.7trn in spend globally by 2027. With this, there is a significant opportunity for card issuers to drive revenue growth by choosing the optimal credit card strategy.
Juniper Research also found that the rising affluence in emerging markets will be a significant driver of credit card adoption. As a result, digital card issuance platforms should offer credit solutions to the mobile wallet dominated markets, it said.
The report predicts that by 2027, the monetary value of rewards for users from credit card use will reach $103bn, globally. Juniper recommends card issuers focus on app-based loyalty to maximise the appeal of these rewards, partnering with well-connected digital loyalty programme providers to maximise their appeal. Failing this, issuers will lose out to better-connected vendors, Juniper warned.
Research co-author Nick Maynard said, “In emerging markets, the ability to instantly issue digital cards will be a key factor in users choosing credit cards over other payment methods. Card issuance platform vendors must ensure localisation to enable cards to be quickly pushed to the wallets popular in each market.”
The report can be downloaded here.
A recent report from Juniper found that global spend on B2B cross-border payments will exceed $40trn by 2027, rising from $27trn in 2022.
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