What does modern card issuance mean in 2023?
For banks, modern card issuance means delivering an immediate, digital-first payment experience.
It also implies the delivery of an intuitive mobile app combined with the swift roll-out of an integrated solution.
This involves redefining card issuance to combine traditional payment cards with virtual cards, digital cards (via in-house and OEM wallets) and scalable, resilient payment solutions.
Modern card issuance opens the door for more innovative perks and customised credit card programs, including personalised rewards, compelling APRs, more redemption opportunities, adaptable credit lines, and crypto payments.
Origins of modern card issuing
Tech-forward fintechs, neobanks, and crypto-exchange platforms have already implemented these digital-first, all-in-one mobile apps.
We foresee that all card issuers will adopt this approach in the short and medium term.
Quite simply, the consumer demand for this new mobile experience is too strong to be ignored by incumbents.
Moreover, banks can disrupt the disruptors as they have an edge in the resources and expertise they can dedicate to building new businesses.
But there are other reasons why so many card issuers love using this new approach:
Modern card issuance brings tangible benefits.
Modern card issuance to unleash new potential
Banks, wallet providers, and card issuer processors want to energise their brands through modern card programs: their customers expect to be in control, via their mobile device, 24/7 of all their payment cards' life cycle steps. They demand services to be instantaneous, simple, yet secure.
As innovation in payment is set to accelerate drastically with new services beyond mobile payment, such as 3-D Secure, Click-to-Pay, pay by instalments, alerts, and control, card issuers want a new card issuing platform capable of launching new services quickly and cost-efficiently.
They need to invest in a new card issuance architecture that is scalable for the years to come.
The good news?
This new mobile user experience revolution and the upsurge of digital cards, virtual cards and physical cards bring tangible benefits to card issuers: more card acquisitions, transactions, and fewer frauds for online purchases.
This shift also changes how banks engage with their customers, what they sell, and how they demonstrate value.
So, let's discover the three dominant principles of modern card issuance.
Three dominant principles of modern card issuance
#1. The modern card issuance approach is not another payment service.
To develop and implement a successful digital-first card issuance strategy, banks must understand how the new overall system affects the relationship between virtual, digital and physical elements.
#2. Modern issuance does not mean digital-only.
Needless to say, in many cases, a digital-only offer will be the most appropriate solution for the issuer.
But if banks want to meet the needs of all their clients, with no exception, they must address virtual and physical via an issuance process that harmonises the two aspects.
#3. Aiming for a unified issuance offer
With a mobile app acting as a "control tower, "customers want the freedom to orchestrate their own mix of virtual, digital, and physical services.
With this client-centric model, the usual proposal with siloed channels (web, online, branch) often unrelated to each other is no longer relevant. Banks need to offer a comprehensive and fully integrated payment card portfolio.