To ensure its continued relevance, the card industry is implementing several strategies to further advance the online purchasing experience –whether through robust security measures, better user experience, or partnerships with rising market players, as numerous experts in this study highlighted. 

First, issuers and networks strive to make online card usage as smooth and appealing as possible by improving user experience, such as simplifying checkout processes or integrating biometric authentication.

“The challenge lies in enhancing the user experience and minimizing friction, all while maintaining robust security measures—a delicate balance that card brands and issuers must master to stay competitive," states André Peixoto, Director of Operations at EBANX. 

Peixoto specifically highlights fingerprint or facial authentication during payment as a promising technology that can enhance user experience while ensuring the safety and security of transactions. He also emphasizes the role of click-to-pay technology in reducing the number of clicks needed to complete a purchase, thereby improving convenience and efficiency.

“Click-to-pay has been the card industry's response to instant payments,” says Lehr, from PCMI. “Basically, your card is tokenized and saved. It's been introduced in Latin America, but it hasn't really scaled yet.” 

On the other end of card processing, merchant settlement is also seeing a push for instantaneity. Eduardo de Abreu, Vice President of Product at EBANX, highlights an example from Mastercard and its pilot program in South Africa. For the first time in the country, merchants accepting card payments will have same-day settlement—an initiative to improve business cash flow management.

Abreu comments, “Cards and networks will increasingly focus on improving solutions to align with the instant payment trend—not just for processing transactions but also for facilitating faster settlement.” Although card payment is confirmed instantly, merchant settlement takes a couple of days or even weeks, depending on the country or the issuer. This shift reflects the growing demand for speed and efficiency in card payments while maintaining reliability.

The payment expert also underscores the evolution of security technology and cites tokenization as a crucial element in reducing fraud risk without compromising approval rates. “Usually, those are opposing forces—the higher your conversion rate, the greater the potential for chargebacks. This creates a dilemma that can be addressed by new features such as Network Tokens and Data only. However, readiness will vary significantly from market to market.”

From a more institutional perspective, Lindsay Lehr from PCMI notes that networks like Visa and Mastercard are forging partnerships with major digital players like Google, Apple, digital wallets, and mobile money providers to adapt to the digital-first ecosystem.

At the same time, most issuers in emerging markets are embracing “coopetition” with instant payments, which they see as a way to build customer engagement and loyalty. "Surprisingly, they're not concerned about losing interchange revenue," Lehr says. "Their priority is retaining deposits and ensuring they don’t lose customers to alternative platforms."

Juliana Etcheverry, Director of Country Growth – Latin America at EBANX, highlights additional initiatives by card companies—including fintech and traditional issuers—to boost card usage: the strategic use of data to offer personalized financial products and services tailored to individual consumer behaviors. 

"Analyzing consumer spending patterns, purchase locations, and shopping frequencies enables the creation of customized offerings," she notes. "This personalization encourages increased card usage."

In conclusion, all initiatives are meant to meet the growing demands of digital consumers in emerging economies, in an increasingly competitive landscape. These efforts aim to foster consumer trust while embracing the instant payment trend. Cards continue to adapt, ensuring their relevance in the ever-changing world of digital commerce.