Modern card issuers are turbocharging the issuer processor space by offering API-based, customizable card solutions for non-financial services companies. Mobile payment services, ecommerce marketplaces, and the gig economy are in their sights—along with billions in issuer processing revenues.

• Marqeta and SoFi are leading rapid growth in modern card issuing. Marqeta saw 45% net revenue growth YoY in 2022, for example, while revenues at SoFi-owned Galileo grew 62% YoY. They have been joined by payments processors such as Stripe and Adyen, which offer modern card issuing as part of their broader suite of services.
• Issuing upstarts are forcing far larger legacy players to adapt. Fiserv partnered with Central Payments in March 2023 to deliver modern issuing capabilities to fintechs, and Global Payments has added an API-based developer sandbox for users to test card programs.
• At stake are billions of dollars and three enormous high-growth markets. Among leading players, issuer processing generated an estimated $17.12 billion in 2022, of which Marqeta and SoFi's Galileo held just 6.2%. But modern card issuers are leaning into mobile payment services, ecommerce marketplaces, and the gig economy—massive markets that provide issuer processors huge growth tailwinds.

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