BOSTON–Customer lifetime value (CLTV) is the currency of credit card issuers, but it’s in the middle of a “paradigm shift,” according to a new report.
The PYMNTS Intelligence report “The Best-In-Class Modern Card Issuer: How Diversity and Data Separate the Leaders from the Rest,” produced in collaboration with Visa DPS, surveyed 451 senior executives at financial institutions and fintechs based in the United States.
“It revealed that broader card portfolios and smarter data strategies are no longer just perks,” PYMNTS Intelligence stated. “They’re becoming prerequisites.”
According to the report, while full-spectrum issuers reported stronger business performance and higher CLTV than their peers, the report’s findings drew a line in the sand between those who thrive in a digitizing financial ecosystem and those who merely survive.
The Biggest Difference
“The biggest difference boiled down to the diversity of offerings, technological sophistication and partnerships,” PYMNTS Intelligence stated. “The future will be driven by data and choice, and the winners will be those who deliver both. Not just cards, but ecosystems. Not just transactions, but relationships. In that future, issuing the right card is just the beginning.”
The Portfolio Imperative Grows
According to PYMNTS Intelligence, fintechs and digital-only banks have become “darlings of the digital finance world,” but the data suggested they may be underperforming in CLTV potential.
The company noted its report showed that 68% of FinTech issuers and 59% of digital-only banks still offer only a single type of card.
“In the past, offering a single card type, like a credit card or a basic debit account, might have been enough to attract customers,” PYMNTS Intelligence stated. “But consumer behavior in 2025 is defined by expectations of seamless, personalized and multifunctional financial products. The report found that issuers offering all three card types (credit, debit and prepaid) were 3.5 times more likely to fall into the high CLTV category compared to their single-product peers.”
Feeling the Synergy
The analysis further found the synergy of multiple card types enables financial institutions to serve different customer needs at different life stages.
“A prepaid card might be the gateway for young users or gig workers; a debit card supports everyday spending; and a credit card extends purchasing power,” PYMNTS Intelligence stated. “Together, they create a cohesive financial experience and a long-term customer.
“While portfolio breadth opens the door, it is data that can turn the key to lasting customer relationships,” it continued. “High-performing issuers are not only collecting behavioral data; they are using it in real time to offer tailored credit lines, detect fraud and deploy hyper-personalized promotions.”
‘Interplay of Technology’
According to the report, 68% of full-spectrum issuers prioritize fast processing and 61% value access to consumer analytics in their selection of issuer processors.
“These institutions understand that performance is driven not by a single capability, but by the interplay of technology, customer insights and operational agility,” PYMNTS Intelligence stated. “Advanced analytics also facilitate better risk management. Real-time underwriting and automated workflows minimize friction during onboarding while maintaining strong controls. The result is more approvals, less exposure and a seamless user experience.”
