Banking Phygitization Strategies Driving the Delivery of 2 Billion Instantly Issued Digital and Virtual Payment Cards in 2028

15 May 2024

Offering a comprehensive digital-first experience is increasingly essential for attracting and retaining millennial cardholders. Banks that prioritize digital-first experiences will see higher customer retention rates and sustain a competitive advantage. According to a new report from global technology intelligence firm ABI Research, almost 2 billion instant-issuance digital payment cards will be shipped yearly by 2028.

Digital card issuance benefits both issuers and cardholders through access to value-added services and cost reductions by transitioning to a hybrid physical and digital model. “The most successful technology developers in this space will seek to provide a selection of digital-first integration models, enabling a solutions provider to reach a broader audience of potential bank partners, accommodating a diverse range of requirements,” explains Sam Gazeley, Digital Payment Technologies Industry Analyst at ABI Research. “This flexibility caters to financial institutions seeking to maintain their in-house IT infrastructure or transition to a cloud-based backend.”

This ongoing acceleration toward digital-first banking reflects the increasing availability of digital cards and the growing presence of neo and challenger banks reaching previously underserved populations with agile digitized banking services. As the tech-savvy demographic, characterized by Gen-Z customers, expands, there is a greater desire for convenience and efficiency in banking and card management services.

The trend in digital instant issuance is being accelerated because customer expectations have progressed beyond solutions tailored to their needs and have now extended to the capacity to customize solutions to align with their personalization preferences. Vendors capable of delivering such solutions, including offerings like custom card designs or personalized rewards, will contribute to financial institutions fostering increased customer buy-in and loyalty, as the physical card retains its critical role within the phygitization of banking services. Indeed, technology developers such as Thales, IDEMIA, G+D, Entrust, CPI Card Group, and HID Global are offering end-to-end digital card migration platforms to empower today's banks to launch their own portfolios of digital payment cards.

These findings are from ABI Research’s  Considerations for Digital Card Issuance Platform Approaches application analysis report. This report is part of the company’s Digital Payment Technologies research service, which includes research, data, and analyst insights. Based on extensive primary interviews,  Application Analysis reports present an in-depth analysis of key market trends and factors for a specific technology.

About ABI Research

ABI Research is a global technology intelligence firm uniquely positioned at the intersection of technology solution providers and end-market companies. We serve as the bridge that seamlessly connects these two segments by providing exclusive research and expert guidance to drive successful technology implementations and deliver strategies proven to attract and retain customers.

ABI Research 是一家全球性的技术情报公司,拥有得天独厚的优势,充当终端市场公司和技术解决方案提供商之间的桥梁,通过提供独家研究和专业性指导,推动成功的技术实施和提供经证明可吸引和留住客户的战略,无缝连接这两大主体。

For more information about ABI Research’s services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit

Contact ABI Research

Media Contacts

Americas: +1.516.624.2542
Europe: +44.(0).203.326.0142
Asia: +65 6950.5670

Related Research

Related Service