We’re seeing a huge number of changes in payment cards. Modern issuers have adopted a digital-first user journey, with digital payment cards provided at sign-up and physical cards following later. Numberless and metal cards are increasingly being issued, but the physical payment card could yet become extinct.
At the point of sale, we’re already seeing a battle between traditional EMV contactless cards and payments initiated by QR codes. Contactless digital payments such as Apple Pay and Google Pay continue to grow in-store and online.
Today, issuing banks typically offer payment cards affiliated to a card association, such as credit cards, debit cards and prepaid cards. Looking beyond those cards, there is a vast range of payment products banks can issue. They include virtual accounts, lodge cards for corporate travel, fuel cards, gift cards, loyalty cards, decoupled debit cards and contactless devices such as key fobs and mobile wallets. Embedded finance, embedded payments and cryptocurrencies also present new opportunities.
Issuing processes have evolved significantly in the last decade. EDC has been at the forefront of this progress, supporting and advising issuers and processors as they optimise and modernise their operations.
Our past projects include market sizing analysis for a metal card issuer, and contactless kernel migration for EMVCo. We can help with Strong Customer Authentication (SCA) compliance, technology upgrades and growth strategy.
We’ll work alongside you as you define your value proposition. We’ll collaborate with you throughout the development and launch phases, and ultimately help you to scale.
“While we don’t expect all countries will be cashless, but it is highly likely to happen by 2030 in several countries – such as Denmark, Norway and Sweden. As a result of regulatory changes and the adoption of open banking, there is a growing number of mobile wallets being funded directly from bank accounts. In Asia more users fund their digital wallets directly from their bank account whereas in the West more users fund their digital wallet via a debit or a credit card. Payment issuing financial institutions are expected to adopt new business models over the next decade to respond to changing consumer habits.”
“We have seen that cash transactions have given way to digital transaction in the Middle East. Banks and payments providers are rapidly evolving their issuing strategies. While card payments are growing strongly in the Middle East, mobile wallets continue to increase their relevance in Africa.”
How can EDC help you issue payment methods?
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