Only 17% of Card Issuers Leverage Cards for Customer Growth, Study Finds

Card issuers face mounting pressure to transform their programs beyond basic transaction processing. Today's consumers demand cards that function seamlessly across physical, virtual, and digital wallet formats — instantly, securely, and universally.

Meanwhile, financial institutions seek to strengthen customer bonds, boost card usage, enhance retention rates, and convert their programs into sustainable revenue streams. The challenge is moving from operational competence to strategic differentiation.

A new report from PYMNTS Intelligence and Visa DPS, spanning two years of research across nearly 1,000 US card issuers — including banks, credit unions, fintechs, and digital-only banks — identifies what separates growth leaders from laggards.

The differentiator isn't size, budget, or access to cutting-edge technology. Instead, top performers connect their operational capabilities into a coherent growth strategy. These institutions build on reliable processing, robust fraud controls, accurate account data, and dependable card lifecycle management — but they don't stop there.

High-CLTV issuers layer on capabilities that create daily value: instant digital issuance, wallet provisioning, personalised rewards, embedded financial products, AI-driven insights, and strategic cross-sell initiatives.

The research defines four distinct issuer profiles, each with unique starting points and trajectories:

• Architects: institutions with scale and data advantages that need to translate assets into higher profitability
• Fast Trackers: issuers with strong customer relationships requiring more deliberate investment in growth capabilities
• Challengers: fintechs and digital-first players excelling at activation but needing stronger monetisation strategies
• Box Checkers: institutions meeting baseline requirements but lacking cohesive growth strategies

Each profile confronts different risks, gaps, and opportunities. The report provides tailored guidance for prioritising next moves based on institutional strengths and market position.

The framework reveals how issuers can shift from viewing card processing as a cost centre to treating it as a customer relationship engine. Processing infrastructure becomes the foundation for sustained engagement rather than merely a technical requirement.

Emerging technologies are reshaping the competitive landscape. AI, data analytics, and processor partnerships are driving the evolution of card issuing. Institutions that modernise their capabilities now position themselves more favourably for agentic commerce and increasingly personalised financial experiences.

The research uses average customer lifetime value as a comprehensive metric of revenue potential over the entire cardholder relationship. Issuers are segmented into three groups: high ($2,500 or more), medium ($1,000 to less than $2,500), and low (less than $1,000) based on self-reported CLTV.

The findings underscore a significant competitive divide. While operational basics remain essential — reliable processing, strong fraud controls, accurate data management — they no longer provide competitive advantage on their own.

Issuers that combine operational excellence with strategic capabilities in digital delivery, personalisation, and embedded finance are pulling ahead. The gap between high-performing issuers and the rest of the market continues to widen as customer expectations evolve and technology enablement accelerates.