Discover the Key Actions FIs Should Take Now for Card Payments

The payments landscape in the U.S. is shifting rapidly. Consumers are embracing new technologies, elevating expectations for security, and demanding more personalized digital experiences.

The Future of Card Payments study reveals a clear message to financial institutions (FIs): consumer expectations are rising faster than the current pace of change. To stay relevant and competitive, credit unions and banks must build card programs and digital ecosystems that reflect how people truly pay, adopt, and trust.

Below are the key actions FIs should take now, as illuminated by the whitepaper’s findings.

Modernize and Differentiate Payment Experiences

Consumers overwhelmingly expect to use credit cards, mobile wallets, P2P apps, and digital tools more frequently in the coming years. Credit cards lead future growth at 45%, followed closely by mobile wallets (36%) and P2P apps (37%).

Financial institutions should:

• Invest heavily in mobile-first card experiences, especially for Gen Z and Millennials who drive adoption of mobile wallets, BNPL, and virtual cards.
• Embed card issuance into digital ecosystems, enabling instant issuance, seamless digital wallet provisioning, and virtual card options.
• Expand BNPL and installment offerings, as younger consumers show strong continued appetite for flexible, alternative credit products.

Why this matters: Consumers shift payment methods for speed, rewards, cost, and convenience. Failing to innovate could result in loss of transaction volume and loyalty, to fintechs and big-tech competitors.

Treat Security as a Product, not a Back-Office Function

Across nearly every demographic, security is the #1 motivator for adopting or switching payment methods, cited by 41% of consumers. And an overwhelming 86% say security is critical when considering new payment tools.

Yet there’s a significant gap between awareness and usage of security features:

• Spending limits: 82% aware, only 55% use
• Card controls: 85% aware, only 61% use
• Biometric login: 86% aware, only 74% use

Financial institutions should:

• Simplify user interfaces for spending limits, card controls, and virtual card usage to increase adoption.
• Build proactive education campaigns that teach customers how and why to use security tools.
• Promote trust through transparency, including clear explanations of data use, fraud-detection capabilities, and authentication logic.
• Introduce tiered, customizable security layers, as 79% of consumers are willing to adopt additional protections.

Why this matters: Trust drives usage. Usage drives revenue. Security is now an experience differentiator.

Deepen Digital Personalization and Customer Control

Consumers want more tailored experiences—especially when it comes to insights, offers, and financial management tools. The most valued digital tools include:

• Real-time purchase notifications (67%)
• Card controls (65%)
• Spending limits, round-up savings, and personalized insights

Younger generations in particular expect digital tools to help them manage spending, integrate AI support, and provide personalized financial recommendations.

Banks and Credit Unions should:

• Expand personalization engines for rewards, financial tips, and spend-based insights.
• Introduce AI-powered customer support, as up to 43% of consumers already prefer AI tools—and more than 60% of Millennials and Gen Z trust them for issue resolution.
• Integrate agentic commerce capabilities, which 71% of consumers—especially younger ones—are open to using.

Why this matters: Personalization is no longer a “nice to have”—it is directly correlated with higher satisfaction, especially among digital-forward consumers.

Reimagine Loyalty and Rewards Programs

Rewards are a major driver of payment choice. In fact:

• 32% of consumers switched payment methods for better rewards
• 43% would switch cards for cashback
• Discounts, financing options, and local perks also play a major role in decision- making

Financial institutions should:

• Introduce dynamic, lifestyle-based rewards that adapt to consumer spending patterns.
• Create localized merchant loyalty ecosystems, especially for Gen Z and Millennials who value neighborhood perks more than older groups.
• Offer financing options and flexible repayment at checkout, similar to BNPL but backed by traditional credit underwriting.

Why this matters: Rewards shape behavior—and increasingly define the competitive edge of card programs.

Build a Smarter, More Intuitive Omnichannel Service Model

Consumers overwhelmingly prefer:

• Email for communication (62%)
• Online and mobile self-service for issue resolution (45%)
• Chatbots and AI tools as rising channels for support

Traditional call centers still matter, but they are no longer the primary first stop.

Financial Institutions should:

• Prioritize digital-first service experiences with clear escalation paths to human agents.
• Ensure omnichannel consistency, so cardholders can switch between app, web, chat, and phone without friction.
• Use AI and automation to provide proactive alerts, dispute updates, and real- time account insights.

Why this matters: Consumers expect digital convenience with human reassurance— exactly when they need it.

Support All Payment Preferences—Including Cash

Despite digital acceleration, cash is far from obsolete. 38% of consumers expect to use more cash in the future, and Gen Z surprisingly uses cash more than older generations. They cite control, simplicity, and security as reasons.

Credit Unions and Banks should:

• Maintain and modernize cash access, including ATMs and branch cash services.
• Integrate cash-related insights and tools into digital apps (e.g., “cash spent” logging).
• Recognize the role cash plays in budgeting, inclusion, and financial stability.

Why this matters: Ignoring cash risks alienating key demographic groups and misreading real-world consumer behavior.

The Bottom Line: The Future Belongs to Those Who Adapt Their Card Strategies Now

Consumer expectations around payments, security, personalization, and convenience are rising simultaneously. Designing card programs around old assumptions will lose share—to digital providers, fintechs, big tech, and even alternative payment platforms.

The future of card payments isn’t about replacing old methods—it’s about orchestrating a flexible, secure, and customer-centric ecosystem that adapts to the way people truly live and pay.