Customer Lifetime Value in the Digital Wallet Era
A new card can reach a digital wallet in seconds. Loyalty still takes longer, and one weak experience can send a card straight to the back of the wallet.
The Issuer Engagement Playbook, “Removing Friction, Winning Loyalty: How Top Issuers Remove Cardholder Friction to Grow Customer Lifetime Value,” examines how leading card issuers build stronger and more valuable customer relationships. The report draws on a survey of 500 executives in senior payments roles at U.S. bank and nonbank card issuers.
The findings show that speed has become the starting point. Fifty-nine percent of issuers now offer instant card issuance to digital wallets, up from 32% one year earlier. Sixty-seven percent say this feature influences their choice of issuer processor. Faster access helps issuers start the relationship sooner, but activation alone does not secure a lasting place in the customer’s financial life.
The strongest issuers build on that first moment. They make cards easier to use, place them inside payroll and gig platforms, and watch for signs that a cardholder may disengage. They also invest in mobile experiences, personalized rewards and practical uses of artificial intelligence. These efforts help turn a new account into a long-term relationship.
The performance gap is clear. Sixty-three percent of issuers with high CLTV increased that value in 2025. Only 37% of low-performing issuers did the same. High-performing issuers also show greater use of early customer outreach, churn analysis, and embedded payment programs.
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The Issuer Engagement Playbook: Removing Friction, Winning Loyalty
In “Removing Friction, Winning Loyalty: How Top Issuers Remove Cardholder Friction to Grow Customer Lifetime Value,” learn how:
- The strongest issuers use onboarding, fraud controls, and early spending prompts to build momentum during the first weeks of the relationship.
- Payroll, gig and alternative-income programs can make a card more central to how customers receive and spend money.
- Mobile tools, customer data and artificial intelligence help issuers spot disengagement sooner and deliver more relevant experiences.
The report offers a clear lesson for issuers. CLTV grows through a series of connected experiences. Fast activation encourages early use. Useful digital tools support repeat use. Timely outreach can prevent customer loss. Issuers that improve each stage of the journey give cardholders more reasons to stay, spend, and build a deeper relationship.
About the Report
“Removing Friction, Winning Loyalty: How Top Issuers Remove Cardholder Friction to Grow Customer Lifetime Value,” a PYMNTS Intelligence report produced in collaboration with Visa DPS, examines how card issuers reduce friction across the cardholder lifecycle, from activation and onboarding, through embedding the card in daily financial life, to retention and the in-app experience. The analysis draws on insights from a survey of 500 executives who fill head of payment roles at U.S.-based bank and nonbank card issuers. The survey was fielded from Dec. 16, 2025, to Jan. 14, 2026.
