The leading card networks and issuers continued to convert paper payments in 2025 but also face challenges in an increasingly complex competitive environment. Through acquisitions and investments, the networks have expanded their value-added services for both business and consumer payments, deepened their integration into digital payment channels and enhanced consumer engagement tools. Converting the USD28 trillion in B2B paper payment value offers the single largest opportunity.
Delivery
This report comes in PPT.
Key Findings
Visa and Mastercard blurring the boundary between card and digital wallet networks
To drive card transaction shares, Visa and Mastercard have been actively building digital wallet partnerships, enabling card users to transact on wallet networks.
Meanwhile, they have been promoting card issuing capabilities to digital wallet operators, enabling their users to transact on card point-of-sale (POS) terminals.
JP Morgan Chase climbs in global issuer ranking as Agricultural Bank of China declines
JP Morgan Chase has risen in the global card issuer rankings, strengthening its top position in the US by acquisitions.
Meanwhile, Agricultural Bank of China's ranking has declined due to competition from digital payment platforms like Ant Group's MyBank which cater to small and micro businesses underserved by incumbent banks.
International banks divesting personal businesses in emerging markets with low profits
With declining profit margins in retail banking businesses, international banks including Citibank have been divesting their personal banking business in overseas emerging markets.
This allows those international banks to focus on higher-profit-margin businesses such as wealth banking in key financial centres including Singapore, business and corporate banking.
Digital transformation powered by fintechs
Incumbent payment firms and banks face strong headwinds in existing ways of working and experience challenges in in-house innovations to catch up with digital challengers.
Instead of developing everything in-house, many incumbents including Visa and HSBC have identified key areas of embedded finance partnerships to outsource to fintechs, or acquire them.
Scope: Passport payments and lending system - key data coverage summary
Key findings
Visa and Mastercard gaining market share from UnionPay
Acceptance becoming universal in many developed markets
High market consolidation limited by market access
Chinese issuer shares decline as American issuers gain share
Moderate moves in issuer share of payments
Less consolidated competitive landscape
Top priorities in payments and lending over 2025-2030
Three key strategies: Acquisitions, security enhancements and alternative lending
Capital One acquisition of Discover closes
Visa acquires Pismo in 2024 to build issuer processing and core banking capabilities
Investment in security: Mastercard with Recorded Future
Investment in security: Visa and Feature Space
American Express providing BNPL to customers directly
Sezzle brings BNPL to Discover
Recommendations
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Payments and Lending
This is the aggregation of Financial Cards and Payments, Mobile Payments, Transactions, and Consumer Lending.
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