08:55 AM
Connect Directly

How The Cards Business Is Transforming

Mobile capabilities, nontraditional competition and new regulations are among the trends reshaping the cards business. What does it mean for the major players -- and for banks?
2 of 3

Rethink How Cards Are Offered

Aleia Van Dyke
Analyst in Payments, Javelin Strategy & Research

We're seeing several key trends. First is widespread digitization of payments. Most traditional task-based, cash-based payments are falling by the wayside, while there's a proliferation of electronic payments. We are also seeing an increase in the use of prepaid and mobile, which is dramatically changing the payments and cards space.

The industry as a whole is challenged by new and constantly changing regulations, and card issuers know they'll be challenged by future regulations as well. We also see that many banks today have to re-evaluate their card-issuing strategies, whether evaluating the fee structures for certain types of cards, whether or not they even want to offer certain cards, or whether they only want to offer certain cards to a specific customer segment.

The industry is changing rapidly, and so is the way banks will compete in the future. Today we see many new competitors in this space, which is becoming worrisome for banks and card issuers. When we think of payments, we no longer simply think of traditional credit card companies; we're starting to think of nontraditional players such as Google and Apple that we wouldn't have associated with the payments space 10 to 15 years ago. We're seeing more partnerships, and we'll see more banks change the way they offer cards so that they're not just offering a single product.


Peggy Bresnick Kendler has been a writer for 30 years. She has worked as an editor, publicist and school district technology coordinator. During the past decade, Bresnick Kendler has worked for UBM TechWeb on special financialservices technology-centered ... View Full Bio

2 of 3
Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
Register for Bank Systems & Technology Newsletters
White Papers
Current Issue
Bank Systems & Technology
BS&T's 2014 Elite 8 executives are leading their banks to success, whether it involves leveraging the cloud, modernizing core systems, or transforming into digital enterprises.
Bank Systems & Technology Radio
Archived Audio Interviews
Join Bank Systems & Technology Associate Editor Bryan Yurcan, and guests Karen Massey and Jerry Silva from IDC Financial Insights, for a conversation about the firm's 11th annual FinTech rankings.