Card issuers are facing significant challenges in today’s rapidly evolving payments landscape. A recent study by Deloitte highlights how regulatory scrutiny on credit card late fees is intensifying, notably impacting profitability in a sector where fee income generates over US$100 billion for US payments companies. With late fees contributing 15% to credit card issuers' profitability, the pressure to evolve is mounting.

Simultaneously, merchants are actively driving the adoption of alternative payment methods, particularly pay-by-bank and account-to-account transactions, to circumvent traditional interchange fees.

This shift, coupled with rising fintech competition, demands a strategic response from established players.

Key Modernisation Priorities

Success in this changing environment requires a focused approach to platform modernisation. Digital-first capabilities have become non-negotiable, with instant issuance and wallet integration leading the charge. Enhanced security features, including advanced encryption and real-time fraud prevention, are critical for maintaining customer trust in an increasingly interconnected ecosystem.

Multi-currency solutions represent another essential priority, enabling efficient cross-border transaction management and competitive FX offerings. Underpinning these capabilities, API-driven architecture facilitates seamless integration with emerging payment methods whilst enhancing data capabilities for improved decision-making.

HPS PowerCARD: Enabling Issuer Evolution

PowerCARD's issuing platform helps address these challenges by offering advanced payment flexibility, providing comprehensive management of any type and form of payment, such as credit or debit cards. The platform supports a wide range of modern, digital payment use cases.

For instance, PowerCARD enables seamless post-purchase debit-to-credit conversion with BNPL functionality, allowing customers to customise their repayment plans instantly. Users can tailor their installments by selecting key factors such as payment schedule, number of installments, and installment amounts, ensuring a personalized and flexible payment experience.

The solution's multi-currency capabilities demonstrate global reach, supporting 180+ currencies across multiple jurisdictions on a unified platform. This enables businesses to easily launch multi-currency cards for various use cases. This extensive coverage, powered by API-driven currency configurations, means seamless cross-border operations for international customers. 

PowerCARD's digital-first omnichannel platform delivers instant virtual card issuance and immediate digital wallet integration with major providers like Apple Pay and Google Pay. Virtual and numberless dual card options enhance security, whilst advanced orchestration systems manage complex payment processes efficiently. The platform also ensures comprehensive transaction processing across all channels, supporting instant merchant settlement.

In addition, capabilities in next-generation data intelligence offers sophisticated merchant information clarity, enriched transaction history and improved spending oversight tools, building trust between financial institutions and their customers.

Benefits and Outcomes

Those financial institutions taking the initiative towards modernisation initiatives should expect increased operational efficiency via streamlined processes and automated workflows. Moreover, instant digital card issuance and flexible payment options should also mean a significant enhancement in customer experience.

Ultimately, a platform's future-ready infrastructure ensures institutions can rapidly adapt to evolving market demands, whilst maintaining competitive differentiation in an increasingly crowded marketplace.

Through comprehensive solutions like PowerCARD, financial institutions can confidently navigate regulatory challenges, meet evolving customer expectations, and maintain their competitive edge in the digital age.

To learn more about how HPS’s PowerCARD digital payments platform can enhance security, streamline transactions, and drive customer trust, visit our website or contact sales@hps-worldwide.com.