From swipes to digital wallets, virtual cards, contactless taps, and wearables – cards have maintained their dominance through constant reinvention. But as global technology and market forces accelerate change, the future of cards is one to look forward to, writes Yusuf Hassen, head of card at PayInc (formerly BankservAfrica).
Even in the era of real-time transactions, cards are reinforcing their position in the evolving payments landscape. According to a 2025 study by Allied Market Research, the global card market was valued at $28,6-trillion in 2023, projected to reach $56,4-trillion by 2033, growing at a CAGR of 6,9%.
The rise of e-commerce, mobile adoption, and advancements in card technology – like contactless payments – are changing how people pay, delivering greater convenience and security in everyday transactions. Despite growing digital alternatives, card payments continue to play a central role in the shift toward cashless economies, supporting broader financial access in emerging markets like South Africa.
As global payment systems modernise, cards still hold a prominent place in industry discussions. But their long-term role depends on a few important factors. With increasing demand for faster, lower-cost and more seamless ways to pay, there’s a global push to cut costs, and simplify the overall payments experience for consumers.
The issue of high fees
In late July 2025, New Zealand became the latest country to propose bans on surcharges for most in-store debit and credit card payments. In the same month, the Reserve Bank of Australia proposed removing surcharges in a move to help consumers, and for its goal of a ‘more competitive, efficient and safe payment system for everyone’.
Similarly, Europe’s largest retailers are urging regulators to cut card fees, arguing they stifle competition and squeeze smaller players.
High transaction and interchange fees charged by payment networks and issuing banks have traditionally placed cost pressures on merchants – cutting into margins and putting businesses under financial strain. In many cases, these costs are passed on to consumers, driving up prices in an already cost-sensitive economy.
In South Africa, if we consider the roughly 1,8-million informal traders operating in the thriving township economy, estimated to be valued at R1-trillion and more, according to Kasinomics – R750 billion – where margins are tight and operating costs are high, transaction fees can be the make-or-break. These have a direct influence over whether a spaza shop owner goes with cash, card or digital payments.
With growing expectations for low-cost, inclusive payments, the future relevance of cards may depend on how effectively the industry addresses rising fee structures.
The move to efficient, unified payments
One of the strongest trends in payments is the convergence of cards and real-time systems. In China, for instance, super apps like WeChat let people choose at checkout whether to pay by card, bank account or mobile wallet. Most payments are triggered by scanning a QR code, but behind the scenes the system automatically routes and settles the transaction. For the user, it feels seamless – no matter which option they select.
In India, UPI has become the backbone of real-time payments, with the integration of RuPay credit cards accelerating digital adoption and the country’s cashless drive. Since approval in 2022, usage has surged – by 2024, UPI-linked credit cards averaged 40 transactions per user per month, eight times higher than traditional cards, according to Kiwi.
With technology advancements inviting newer ways to pay, it is increasingly opening the doors for the convergence of cards and faster payments acceptance. As such, the role of payment acceptance providers will become even more prominent in the future, creating more competition and driving down the costs of payments to merchants and the end user. It’s likely that the traditional card acquirer will have to evolve, becoming ‘omni-acquirers’ to allow merchants seamless choice.
As payments modernise with a focus on security, reliability, interoperability and efficiency, card payments are set for further transformation. Consumers and the industry alike should prepare for a future where cards continue to adapt, integrate and compete at the heart of the cashless economy.