The news: Issuers should prioritize card portfolio diversification, data analytics, and key partnerships to compete in the credit card market, per a PYMNTS and Visa DPS report.

Key findings: Issuers with a high customer lifetime value (CLTV) had the following qualities:

• Full-spectrum issuers—providers offering debit, credit, and prepaid cards—were 3.5 times more likely to have a higher customer lifetime value than issuers with just one type of card, at 44% and 12%, respectively. 
• 68% of full-spectrum issuers work with issuer processors that provide fast transaction processing.
• 61% of full-spectrum issuers choose issuer processors that provide access to customer analytics.

PYMNTS and Visa DPS’ report emphasized that the synergy of all components—diversity, data, and processor partnerships—made a significant difference in the issuers’ performance. Giving the customer wealth of choice with card selection, fast processing speed, and fraud detection seals an issuer's value.

Our take: While having a diverse portfolio of cards can be a recipe for success, it isn’t the only path card issuers can take. 

Single card issuers—and fintechs that offer card products—can still stand out by offering user-friendly interfaces optimized for their cardholders. Companies like Affirm, which offers the Affirm Card, will need to lean into optimizing their customer experience to create brand loyalty and long-term customer value.