Paymentology report key takeaways – the global credit card shift

Irina Ionescu, Senior Editor at The Paypers, uncovers the most important findings from Paymentology’s latest report, ‘The Global Credit Card Shift: Next-gen platforms bypass legacy limits’. 

Traditional banks and fintechs operating on legacy processing platforms face enhanced pressure from new companies launching digital-first credit products. Their infrastructure is purpose-built, cloud-first, designed for scalability, and enables features that regular legacy systems cannot replicate without prohibitive costs in money and labour.

The latest report from Paymentology and Datos Insights, ‘The Global Credit Card Shift: Next-gen platforms bypass legacy limits’ examines the current global credit card landscape across key markets, showing how legacy systems are at risk because they cannot deliver real-time controls, instant issuance, flexible payments, rewards, or a seamless mobile experience. To prevent staying behind, traditional banks must modernise and remain competitive.

The report provides a detailed analysis of credit cad market opportunities across several regions, including Asia-Pacific, North America, Europe, MENA, and LATAM. It discusses the evolving demands of cardholders, the rise of new credit offerings such as Buy Now, Pay Later (BNPL), and the convergence of credit, instalment payments, and rewards.

To develop the report, Paymentology and Datos Insights focused on interviews with executives and regional experts, desk research, and the author, David Shipper’s experience launching and managing card programmes at financial institutions in the US. Below we have summarised the key takeaways of the paper.

Key takeaways from the report

1.      The global credit card opportunity and the resilience of credit cards

Credit cards remain one of the most profitable banking products, generating revenue through interchange, fees, and interest. The global market is growing across regions, driven by consumer behaviours, economic conditions, and payment infrastructure maturity. Issuers must adopt scalable platforms to meet increasing demands and expand geographically.

Despite the rise of alternative payment methods, credit cards continue to remain popular due to their financial flexibility. However, regional differences in adoption and usage highlight the need for tailored credit card programmes to remain relevant to new generations of consumers and their fast-paced digital requirements.

2.      Regional analysis

In this section of the report, Paymentology and Datos Insights examine how credit cards perform across key markets worldwide, highlighting the unique characteristics and growth drivers that define each geography. For instance, in Asia-Pacific, markets like Hong Kong, the Philippines, and Thailand show strong credit cards adoption, driven by rewards programmes, ecommerce, and financial flexibility. In North America, mature markets like the US and Canada heavily rely on credit card usage although legacy platforms hinder innovation.

In Europe, we encounter diverse markets with varying credit card adoption rates. Here, success requires adaptable platforms to meet local needs. The MENA region mainly consists of emerging markets with strict regulatory frameworks and growing credit card adoption, although alternative payment methods designed for the underbanked population remain highly popular. Finally, in LATAM we encounter expanding economies and rising consumer spending power which set the ground for credit card growth opportunities.

3.      Evolving customer expectations

Consumers now expect personalised credit card features, including flexible repayment options, tailored rewards, and subscription management tools, which prompts issuers to cater to diverse customer segments with innovative products.

At the same time, next-generation platforms enable advanced features like instant digital issuance, push provisioning to mobile wallets, adaptive credentials, dynamic CVV codes, and real-time spending controls – features that further enhance security, personalisation, and customer engagement. Thus, a seamless digital experience seems more important than ever for modern cardholders. The same next-gen platforms allow issuers to launch and modify products quickly, meeting consumer expectations in terms of speed and flexibility. 

4.      Emergence of new credit offerings

BNPL and embedded credit options are reshaping consumer behaviour, challenging traditional credit card programmes. To meet new client needs, issuers must innovate. Modern credit cards should offer bundled capabilities, including revolving credit, instalment payments, and rewards. These features are now baseline expectations for customers in all geographies.

5.      The rise of neobanks and fintechs

Neobanks and fintechs are stepping in to offer features modern customers expect. They are increasingly launching credit card options that enhance profitability and deepen customer relationships. These digital-first companies choose next-generation platforms to meet their requirements in terms of speed and flexibility, supporting innovative features.

To compete with this new wave of personalised and flexible credit solutions, issuers must:

• Adopt modern, cloud-first ledger systems. Legacy systems limit speed, innovation, and scalability, while modern ledgers enable real-time operations and flexibility.
• Leverage configurable platforms. Configurable platforms allow issuers to tailor products for different customer segments and markets, enabling rapid experimentation and iteration.
• Partner with the right card processing provider. Providers that offer integrated card issuing and credit ledger capabilities, regulatory expertise, and proven implementation experience are critical for success.

Traditional financial institutions should consider migrating to next-gen platforms to remain competitive, either through full migration or a ‘sidecar’ approach. They should focus on product innovation and partner with experienced processors to ensure a seamless migration.

At the same time, neobanks and fintechs should continue innovating their products and consider cloud-first platforms to avoid technical debt. They should opt for providers with integrated card issuing capabilities, prioritising configurability and speed to market.

Conclusions

Credit cards remain a popular financial product requested in all geographies and by all age segments. However, issuers must modernise their infrastructure to meet evolving consumer expectations and compete with innovative neobanks and fintechs.

The future of credit card programmes lies in adopting technology designed to meet the ever-evolving demands of digital-first cardholders.

Download the full report here to read more on how legacy credit card issuers can modernise their platforms and compete with next-gen fintechs and neobanks. 

 

About the author

Irina is a Senior Editor at The Paypers, primarily specialising in online payments and fraud prevention. She has a Ph.D. in Economics and a strong economic academic background, with interests in fraud prevention, chargebacks, fintech, AI, ecommerce, and online payments. Reach out to her via LinkedIn or email at irina@thepaypers.com.

 

About Paymentology

 

Paymentology is the leading next-generation issuer processor, empowering fintechs, digital banks, and retail banks to effortlessly launch and manage innovative payment solutions on a global scale. The company drives greater customer choice and value through easy-to-use, integrated platforms and services that help clients to disrupt the status quo, accelerate time to market, and achieve growth. With a superior multi-cloud platform offering a vast global footprint and enhanced real-time data, Paymentology distinguishes itself as a leader in the payments industry.