OVER 320 MLN CREDIT CARDS ISSUED WORLDWIDE BY 2027 - JUNIPER RESEARCH

KUALA LUMPUR, Jan 31 (Bernama) -- The number of credit cards issued via digital card issuance platforms will exceed 321 million globally by 2027, from 120 million in 2023, according to a new study from Juniper Research.

According to Juniper Research in a statement, this growth of almost 170 per cent 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.

Digital card issuance platforms allow card issuers to create cards using an Application Programming Interface (API)-driven approach, enabling cards to be delivered instantly to digital wallets, with the option for a physical card, boosting flexibility significantly.

The new report, Credit Cards Strategies: Innovation Analysis, Digital Transformation & Market Forecasts 2023-2027, found that credit card spending will account for over US$9.7 trillion globally by 2027. (US$1=RM4.245)

This represents a significant opportunity for card issuers to drive revenue growth by choosing the optimal credit card strategy.

Its research co-author, Nick Maynard said in emerging markets, the ability to instantly issue digital cards would 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,” he said.

The research forecasted that by 2027, the monetary value of rewards for users from credit card use would reach US$103 billion globally, driving overall adoption.

It recommends that 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 and if issuers fail to do this, they will lose out to better-connected vendors in a highly competitive credit card market.

-- BERNAMA