Ten years ago, card issuing was a stable business built on plastic and interchange revenue. Five years ago, the shift to contactless, basic mobile wallet provisioning, and 24/7 authorisation was enough to remain competitive. Today, the pace of change has accelerated. Issuers are now expected to operate at real-time speed, manage tokenised credentials seamlessly, and comply with stricter regulatory frameworks, all while supporting embedded-finance partners that demand cards on demand. What was once an incremental evolution has become a fundamental rewrite of the issuing model.
Changes in the landscape
There are several forces that are reshaping card issuing from what we know to what we should expect.
The issuing environment has become significantly more complex. Regulation is tightening across Europe: PSD3 and the PSR will impose stronger authentication and refund requirements, while the UK regulator continues to scrutinise interchange and scheme fees. At the same time, tokenisation is fast becoming the industry standard, with networks reporting nearly half of e-commerce volumes already tokenised. Embedded finance is accelerating, with SMEs and platforms now expecting cards to be issued in days, not months.
Compliance failures are also drawing sharper penalties. In early 2025, Dutch authorities fined De Volksbank €20 million for persistent weaknesses in its customer due diligence and AML framework, including inadequate KYC checks and insufficient monitoring of high-risk clients. The case underlines that regulators across Europe now view weak onboarding and monitoring as systemic risks, not process oversights. For issuers, it is no longer possible to treat compliance as a secondary concern; it has become central to operational resilience and long-term viability.
What’s driving modern card processing
The shift in card management is happening because both regulation and technology are pulling the market in the same direction. Regulators demand real-time transparency, stronger fraud controls, and interoperability, while customers expect instant issuance, tokenised payments, and mobile-first journeys. Networks are enforcing tokenisation mandates, and cloud-native providers are raising the speed and cost-efficiency benchmarks. Together, these forces define what a “modern” card issuer must look like.
Several key trends are transforming how card processors operate today:
- Mobile-first Experiences. Cardholders expect seamless wallet provisioning, tokenised credentials, and frictionless transactions across mobile channels.
- Real-time Transactions. Instant issuance, instant approvals, and near-instant refunds are the baseline, not differentiators.
- Cloud-native Systems. Migration to cloud infrastructure delivers cost efficiency, active-active resiliency, and rapid scheme compliance.
- AI-Driven Processes. Generative AI and ML models are entering card management, improving fraud detection, dispute handling, and customer service efficiency.
Features Issuers must prioritise
Modern features are not add-ons but core enablers of competitiveness. Issuers that cannot deliver flexible program management, instant credential provisioning, and advanced fraud controls risk losing relevance in an environment where challengers can launch fully tokenised programs in weeks. These features are considered modern because they are designed for API-first, cloud-native environments where speed, compliance, and scalability are embedded into the infrastructure rather than built around it.
Key features to prioritise include:
- Card programmes development and management. End-to-end tools for program planning, product design, sales support, and market rollout enable issuers to scale offerings quickly.
- No-Code/Low-Code Setup. Simplified configuration allows product teams to launch new card programs without long IT dependencies.
- Credit-Scoring-as-a-Service. Real-time scoring engines with flexible risk thresholds support tailored lending products while ensuring compliance.
- API-first Architecture. Clean, open APIs are critical for connecting with partners, merchants, and embedded-finance platforms.
- Token Lifecycle Management. Instant credential provisioning, refresh, and deactivation safeguard approval rates and user experience.
What comes next
The issuing market is converging on a simple reality: only those with modern, API-driven, cloud-native platforms will remain relevant. Regulatory change, tokenisation, and embedded finance are not temporary trends but structural shifts.
The Arkwright Card Issuing report reinforces this view, highlighting that modern API-first platforms are not only growing faster but also capturing the majority of new program launches across Europe. The conclusion is clear: for banks still tied to legacy cores, the decision is unavoidable. Retrofit at the margins, or rebuild for resilience and growth. Those who act early will not just meet compliance deadlines but convert regulatory headwinds into competitive advantage.
Learn more about SmartVista card management proposition here
