A PYMNTS/Visa DPS survey finds the share of issuers with high customer lifetime value fell to 17%, even as spending on AI and digital tools rose.
Alpha Score of 71 reflects strong overall profile with strong momentum, moderate value, strong quality, moderate sentiment.
U.S. card issuers are pouring more money into digital tools and artificial intelligence, yet fewer are delivering the kind of customer experience that builds long-term profits. The share of issuers generating high customer lifetime value dropped from 21% to 17% over the past year, according to a PYMNTS Intelligence report produced with Visa DPS.
The survey of 500 payments executives at U.S. bank and nonbank card issuers, fielded from Dec. 16 to Jan. 14, suggests technology investment alone is not enough. Customers can activate a card faster than ever. They can also leave just as quickly when an app feels clunky, a reward takes too long to materialize or an issuer misses early signs of frustration.
Leading issuers build value through a series of connected experiences, the report found. They make approval straightforward, help customers use the card immediately and offer mobile tools that actually solve problems. They also respond before a customer starts looking for alternatives. Each positive interaction gives the card another reason to stay in regular use.
Lower performers lose ground on the basics. A confusing onboarding flow, a rewards program that delivers little early value, or a mobile app that lags rivals can push a card to the back of a wallet – or out of it entirely. The gap between leaders and laggards widened over the survey period, even as both groups spent more on AI and digital features.
The report also examined sign-up incentives, card portfolio design and the role of customer data. Issuers that connect these tools across the full cardholder journey see the strongest retention and spending growth, executives said.
The findings carry direct revenue implications. A 4-percentage-point drop in high-CLV issuers means more cardholders churning before they generate meaningful interchange and interest income. For issuers competing for a shrinking share of loyal users, the path forward depends less on how much they spend and more on where they spend it.
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