By Tina Zulich | CSI

Debit and credit card programs have been around for decades, and many financial institutions are focused on newer priorities: AI, instant payments, embedded finance, open banking and digital experiences. But cards are still central to everyday banking, powering purchases, generating useful data and helping community banks build stronger account holder relationships. Improving your card program can help drive growth as fraud threats, merchant costs and demand for personalization continue to rise.

Cards Still Power Everyday Payments

Even as payment options expand, cards are still the most popular way to pay. In 2024, credit cards accounted for 35 percent of all consumer payments by number and debit cards accounted for 30 percent, according to the Federal Reserve’s 2025 Diary of Consumer Payment Choice. That creates opportunity—and competition. Account holders carry multiple cards, and business owners use many payment tools. Being in the wallet isn’t enough; institutions need a reason to be first choice. That reason will look different across segments. For some account holders, it may be mobile wallet convenience, card controls or merchant offers. For others, prepaid cards can provide a first step to build credit or manage spending. With U.S. credit, debit and prepaid card purchase volume projected to grow from $12.260 trillion in 2024 to $15.701 trillion in 2029, institutions that tailor their card programs to different customer needs will be better positioned to capture long-term growth.

Start With the Right Cardholder Signals

Many card programs still use broad promotions: a seasonal campaign, a generic rewards message or a one-time activation push. That misses the bigger opportunity. A stronger strategy starts with behavior. Institutions should look for signals such as:

• Active checking accounts with little debit use or cards never activated;
• A decline in card spend over the past 60 to 90 days;
• Account holders who may be better matched with secured, prepaid, or credit-building options; and
• High-value cardholders who may respond to rewards, merchant discounts, or premium benefits.

This is where consumer intelligence and segmentation become practical. A college student building credit doesn't need the same message as a business owner managing expenses or a retired debit card user who values simplicity. Tailoring offers to those differences creates more relevant experiences.

Make Activation Feel Like Help, Not a Sales Pitch

Many card programs lose momentum early in the lifecycle. A card is issued, mailed, and activated, but usage never becomes a habit. Treat the first 90 days as a card adoption window. Build a short sequence that helps the account holder take the next useful step:

• Day 1: “Your card is ready. Here’s how to activate it.”
• Day 7: “Add your card to your mobile wallet for faster checkout.”
• Day 21: “Use your card for everyday purchases like groceries, gas, and subscriptions.”
• Day 45: “Set alerts to help monitor spending and spot unusual activity.”
• Day 75: “See where your card benefits can help you save.”

The same approach works for inactive cardholders. If someone hasn’t used a debit card in 60 days, point to a specific benefit, such as easier checkout, controls, ways to earn rewards or recurring bill payments.

Add Value Beyond Points

Rewards still matter, but they won’t carry a card program alone. Many account holders expect security, digital access and practical savings. For consumers, that may include:

• Card controls and real-time alerts;
• Digital wallet support;
• Credit-building options; and
• Fraud monitoring.

For businesses, that may include:

• Expense management tools;
• Cash-flow visibility; and
• Employee card controls.

One practical way to extend that value is through merchant discounts. They give cardholders a reason to use their cards more often while helping financial institutions differentiate their programs beyond traditional rewards.

Use Merchant Discounts to Give Cardholders a Reason to Come Back

Merchant discounts give cardholders a reason to use their cards beyond rates, fees or traditional rewards by helping them save on everyday purchases. Programs like Visa SavingsEdge and Mastercard Easy Savings give business cardholders a practical reason to use their cards for everyday operating expenses:

• Visa SavingsEdge offers eligible Visa Business cardholders savings on in-store, online, and travel purchases through card-linked offers, cashback, and instant coupons.
• Mastercard Easy Savings automatically applies rebates on eligible purchases with no coupons or codes required.

Both programs are easy for issuers to implement and provide savings in categories businesses use every day, including fuel, dining, hotels and travel. The result is a stronger reason for cardholders to choose their business card for everyday spending.

Don’t Ignore the Back End

Card growth isn’t only a marketing challenge. A core-integrated card processing solution can also support clean operations, good reporting and disciplined portfolio management. Institutions should regularly review:

• Activation, usage and attrition trends;
• Spend by channel, including card-present, card-not-present, and mobile wallet;
• PIN vs. signature routing strategies;
• Reissue costs and replacement cycles; and
• Fee structures, disclosures, and account holder experience.

The front end needs the same discipline. Product mix, virtual cards, life-stage marketing, onboarding and inactive strategies can all influence usage. Better reporting helps teams see where the program is gaining traction, where friction is costing the institution and which cardholders need a more relevant reason to reengage.

Keep the Card Program Moving

Cards are becoming more digital, data-rich and competitive. The path forward is practical: use transaction data, segment by actual needs, strengthen onboarding and activation, expand business card value, promote merchant savings and tighten operations. Institutions that do this well treat cards as a daily engagement channel, a source of insight and a growth engine.

Want to know what growth strategies banking leaders are focusing on this year? Check out the 2026 Banking Priorities Executive Report.

Tina Zulich is the manager of product management for payments at CSI. She is responsible for overseeing and ensuring the successful delivery and performance of card solutions. Since joining CSI in 2010, Zulich has played a key role in advancing payment products and supporting customer needs through strategic product leadership.