# The infrastructure behind the next wave of financial services innovation

### Introduction:

**Why cards still matter in a modern payments world**

In the rapidly evolving world of payments, businesses and consumers have a plethora of options at their fingertips. From traditional methods like direct bank transfers and direct debits to innovative solutions like Buy Now, Pay Later (BNPL) and Peer-to-Peer Banking (PBB), the landscape is more diverse than ever. Each payment method comes with its own set of advantages and is suited to different types of transactions and customer needs.

So where do cards fit?

Despite the emergence of new payment methods, cards remain the go-to for consumers and businesses alike, combining convenience, security, and global acceptance across every transaction type.

**Cards. Still. Dominate.**

### Where cards fit into the payment options of today

To put things into perspective, consider the following statistics:

- As of 2023, card payments accounted for over 50% of global point-of-sale transactions, with credit and debit cards leading the adoption.
- In North America, card penetration reaches approximately 70%, while in Europe, it exceeds 60%, driven by mature financial ecosystems and widespread merchant acceptance.
- Globally, the cards and payments market was valued at nearly $952 billion in 2023, and is projected to grow to $1.45 trillion in 2028, at a CAGR of roughly 8.8–8.9% fueled by technological advancements like contactless payments and card tokenization.

### Overview**

For today’s neobanks and digital-first financial institutions, the payment card is the default payment experience. It’s the first product customers receive, the core of everyday financial interaction, and a key loyalty driver.

### Why cards matter in digital banking

Modern digital banks rely on cards to power fast, intuitive user experiences and to generate revenue through interchange. But more importantly, cards give fintechs and FIs the opportunity to:

- **Power seamless onboarding**: Card issuance becomes a critical touchpoint to onboard, fund, and activate new accounts.
- **Unlock programmable UX**: Through APIs, banks can customize card behavior, setting spend limits and enabling temporary access.
- **Deliver instant access**: Virtual cards can be issued immediately after onboarding, giving users a usable product before their physical card arrives.

### Use Case: Banking, reimagined

**Payments that travel with you**

Control spend dynamically, set limits, restrict merchant category codes (MCCs), or freeze cards between trip dates.

**Differentiating the customer experience** by offering tiered benefits, rewards, or emergency access features.

**Enabling global acceptance** while shielding users from hidden FX fees or fraud exposure and reducing the frustrating ‘card not accepted’ situation.

### Conclusion: Why cards are more than just plastic

These are just some examples of card powered innovation beyond the traditional digital banking use case. It can help consumers better manage their finances, provide faster access to credit, embed rewards and loyalty into travel experiences, and facilitate the safe disbursement of aid.

### Looking ahead: The next generation of card innovation

1. **AI-driven spending controls**: Context-aware spending profiles that adapt in real time.
2. **Stablecoins and on-chain settlement**: Instantly via blockchain networks, reducing fees and transaction lag.
3. **Network innovation**: A card that behaves as multiple accounts based on context.

With innovations like these, cards are evolving into intelligent, adaptive platforms that can reshape user experiences across various sectors.

### Build your modern card product today

The tools are in place to create something truly differentiated—and cards remain central to innovation. **At Marqeta, we power modern card programs for innovators, and are certified to operate in 40+ countries.**

**Cards today are no longer static pieces of plastic tied to a bank account. They’re becoming programmable tools that offer flexibility and control.**

**Explore digital banking, travel, and personal finance management use cases, as well as creator economy opportunities to leverage card innovation.**

**Because in a world that tells you to choose between stability or innovation, reliability or creativity, or performance or personalization — we believe you can have it all. Payments experiences that work and inspire.**