Physical Instantly Issued Payment Cards Will Surge to over 470 million Shipments by 2027

Phygital banking is a clear and emerging payment and banking trend
11 May 2023

Many regions worldwide are seeing a sharp rise in instant issuance activity from a physical and digital perspective, from both traditional and neo and challenger banks. Customers increasingly demand instant access to banking services, with physical instant issuance enabling them to leave their branch equipped with a ready-to-go payment card. According to a new report by global technology intelligence firm ABI Research, the worldwide market for instantly issued physical payment cards will increase from 243.2 million shipments in 2022 to a forecast of 471.1 million in 2027. 

“Critically, instant issuance of payment cards is no longer limited to the physical. Indeed, the growing digitization of payments, increasing data security, shifting nature of business spending patterns stemming from the pandemic, and educating around their advantages is causing instantly issued digital-first payment cards to gain traction in both consumer and business sectors rapidly,” says Sam Gazeley, Digital Payment Technologies Analyst at ABI Research. “New neobanks are providing an agile and flexible approach to banking by offering compelling and innovative digital-first solutions.” 

The payments market is converging with other smart card verticals related to ticketing and access control in markets like retail, travel, and education. “This is driving new entrants into the payments market by players for which instant issuance experience is already common. However, ABI Research believes that neither the market's physical nor the digital side is taking share from the other at this point. They are not expected to become competitive over the forecast period ending in 2027,” Gazeley explains.

Phygital banking is a clear and emerging payment and banking trend. Combining the separate physical and digital offerings into an interconnection of incumbent and digital business services opens an experience that places the customer at the top of mind. The resulting customer journey across various banking channels, both physical and digital, enables financial institutions to future-proof their relationships with their users and, as it relates to traditional banks, can remain in competition against neo and challenger banks through their respective customer acquisition strategies.

These findings are from ABI Research’s Physical and Digital Instant Issuance: Migrating to a “Phygital” Experience application analysis report. This report is part of the company’s Digital Payment Technologies research service, which includes research, data, and ABI 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。

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