How Card Issuers Remove Friction to Increase Customer Lifetime Value

U.S. card issuers are increasingly adopting instant digital wallet issuance to reduce customer friction and increase customer lifetime value (CLTV), according to a report by PYMNTS Intelligence and Visa DPS. The study, which surveyed 500 senior payments executives at bank and nonbank issuers, found that 59% of issuers now offer instant issuance to digital wallets, a significant increase from 32% one year prior.

The report, titled Removing Friction, Winning Loyalty: How Top Issuers Remove Cardholder Friction to Grow Customer Lifetime Value, indicates that speed of activation has become a primary requirement for the industry. According to the findings, 67% of the surveyed executives stated that the availability of instant issuance influences their choice of issuer processor.

Impact of Instant Issuance on Customer Lifetime Value

Data from the survey suggests a performance gap between issuers who prioritize friction reduction and those who do not. According to the report, 63% of issuers with high CLTV saw that value increase in 2025, while only 37% of low-performing issuers reported a similar increase.

The analysis indicates that while fast activation allows issuers to start the customer relationship sooner, it is not sufficient to ensure long-term loyalty. High-performing issuers distinguish themselves by implementing a series of connected experiences beyond the initial onboarding process.

These strategies include the use of early customer outreach, churn analysis, and the creation of embedded payment programs to keep the card central to the user’s financial activity.

Strategies for Reducing Cardholder Friction

The PYMNTS Intelligence and Visa DPS report identifies several specific methods that top-performing issuers use to maintain momentum during the first few weeks of a customer relationship:

• Integrating cards into payroll, gig economy, and alternative-income platforms to ensure the card is used for receiving and spending money.
• Utilizing onboarding prompts and fraud controls to streamline the initial spending experience.
• Deploying artificial intelligence and customer data to identify signs of disengagement earlier.
• Investing in personalized rewards and enhanced mobile tools to encourage repeat usage.

According to the report, these efforts are designed to prevent a card from being relegated to the back of a digital wallet after a single negative experience.

Survey Methodology and Timeline

The findings are based on a survey fielded between Dec. 16, 2025, and Jan. 14, 2026. The participants included 500 executives holding head of payment roles at U.S.-based bank and nonbank card issuers.

The research focused on the entire cardholder lifecycle, examining the transition from activation and onboarding to the long-term in-app experience and retention strategies.