BASINGSTOKE, U.K.– A new study from Juniper Research is forecasting 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 growth of almost 170% reflects the use of new advanced digital capabilities, such as digital loyalty schemes and instant issuance, as card issuers aim to combat competition, including buy now pay later,” the company said.
As Juniper Research explained, digital card issuance platforms allow card issuers to create cards using an API-driven approach; enabling cards to be delivered instantly to digital wallets, with the option for a physical card; boosting flexibility.
The new report, Credit Cards Strategies: Innovation Analysis, Digital Transformation & Market Forecasts 2023-2027, found that credit cards will account for over $9.7 trillion in spend globally by 2027.
“This represents a significant opportunity for card issuers to drive revenue growth by choosing the optimal credit card strategy,” Juniper stated.
‘Significant Driver’
The report further said that rising affluence in emerging markets will be a significant driver of credit card adoption. As such, digital card issuance platforms are critical to delivering credit offerings in these mobile wallet-dominated markets, Juniper 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,” said research co-author Nick Maynard. “Card issuance platform vendors must ensure localization to enable cards to be quickly pushed to the wallets popular in each market.”
Rewards Critical to Credit Card Popularity
The research predicts that by 2027, the monetary value of rewards for users from credit card use will reach $103 billion globally, driving overall adoption.
The Recommendations
The Juniper report recommends that card issuers:
- Focus on app-based loyalty to maximize the appeal of these rewards
- Partner with well-connected digital loyalty program providers to maximize their appeal. “If issuers fail to do this, they will lose out to better-connected vendors in a highly competitive credit cards market,” Juniper said.
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