Payment card tech spend to reach $13.6 billion globally by 2029
Propped by banks targeting premium users
According to a new study, issuer spending on card technology is projected to surge from $9.8 billion globally in 2024 to an impressive $13.6 billion by 2029.
This 39% increase underscores a strategic shift among banks and card issuers. Their aim is precise: to attract high-value customers by introducing premium card offerings.
The study, conducted by Juniper Research, underscores a growing trend where financial institutions leverage high-end card types—such as metal and wooden cards—to distinguish themselves in an increasingly saturated market. As competition intensifies, the importance of these premium options as crucial tools for differentiation cannot be overstated.
The comprehensive report, titled Global Payment Card Technologies Market 2024-2029, delivers an exhaustive analysis of the card technology landscape. It includes detailed forecasts for 60 countries, 15,200 market statistics, and a competitive leaderboard, providing stakeholder insights.
Evolving landscape
The research report offers an in-depth analysis of the evolving landscape of payment cards and their impact on the broader payments industry. It examines how banks and other issuers adapt their credit, debit, and prepaid card offerings to incorporate new card types designed to attract diverse demographics.
This includes targeting high-net-worth individuals with premium cards and appealing to environmentally conscious consumers with sustainably produced options.
The study also explores how innovations such as contactless technology and metal cards enhance customer experience at payment terminals and during online transactions.
Additionally, the report addresses future trends and challenges in the card technology market, including the demand for increased personalisation, competition from alternative payment methods, and the growing rivalry among banks.
The new report reveals that despite a forecasted 2% decline in global payment card shipments from 2024 to 2029 due to heightened financial inclusion and reduced new account openings, introducing innovative card types is set to offset this trend.
Notably, metal card shipments are expected to skyrocket by 178% annually, approaching 200 million units by 2029.
Nick Maynard, the report’s lead author, emphasised banks’ need to develop tailored card programs to target niche user segments effectively.
“To sustain growth, banks must offer unique card solutions and integrate advanced issuing platforms,” Maynard said, adding that innovation failure could lead to a rapid loss of market share to more distinctive competitors.
Featured image: Contactless technology and metal cards enhance customer experience at payment terminals. Credit: Karolina Kaboompics
