Instant Issuance: U.S. Current State Assessment

Aite Group estimates that 1.8% of the credit and debit cards in circulation today have been instantly issued and that 2.7% of credit and debit cards will be issued in a branch by 2021. 

Boston, June 27, 2017 — This latest Aite Group report, Instant Issuance: U.S. Current State Assessment, focuses on the current market conditions surrounding instant issuance, assesses the market penetration of instant issuance solutions in the U.S., and gives executives at banks and credit unions insight on the business case and cost for deploying an instant issuance solution. As a refresh to research published in October 2014, this report looks at how the market has changed and what further evolutions might be in store.

Instant issuance solutions have been growing slowly since 2006. Financial institutions back then looked for other ways to differentiate themselves and reduce customer frustration when a new card needed to be reissued as a result of a comprised account. The adoption of instant issuance solutions was relatively low because the cost to implement the solutions was relatively high; however, this dynamic is changing.

“Aite Group estimates that 39% of U.S. banks with more than US$10 billion in assets have adopted instant issuance,” says Aite Group senior analyst Tiffani Montez. “Now that over one-third of large U.S. banks have implemented instant issuance, this will increase the pressure downstream for smaller banks and credit unions to implement this solution to achieve competitive parity,” she says.

This Impact Note is based on completed and verified responses to a request for information from six qualifying services providers. In addition, Aite Group conducted interviews with nonparticipating vendors as well as banks and credit unions that have implemented an instant issuance solution.  

About Aite Group:
Aite Group is a global research and advisory firm delivering comprehensive, actionable advice on business, technology, and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, insurance, wealth management, and the capital markets, we guide financial institutions, technology providers, and consulting firms worldwide. We partner with our clients, revealing their blind spots and delivering insights to make their businesses smarter and stronger. Visit us on the web and connect with us on Twitter and LinkedIn.

Press Contact:
Ames Shatzer
Public Relations

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