Credit card issuers are expanding beyond traditional revolving credit by adding installment lending features designed to compete with the growing popularity of fintech payment providers. As companies like Affirm and Goldman Sachs continue to reshape consumer lending expectations, major card issuers are responding with new repayment options layered onto existing credit card products. The strategy reflects a broader effort by issuers to strengthen customer loyalty, reduce portfolio attrition, and enhance the overall value of credit cards through added convenience, flexibility, and digital-first services.
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Data for this episode of Truth In Data provided by Mercator Advisory Group’s report – Adding an Old Banking Feature to the Credit Card: The Case for Installment Lending
- 24 x 7 x 365 contact – around the clock support, account Alerts, additional Cards
- ATM access, fraud protections, fast card replacement
- Bill payment, balance transfer, free fico scores
- Introductory pricing, mobile app, loyalty & rewards
- Zero liability, virtual cards, statement retention, travel protection
- Features developed by card issuers are often only unique for a limited time
About the report
Fintech firms like Affirm and Goldman Sachs’ Marcus address a weak spot in credit card lending. Top issuers are going head-to-head to displace point-of-sale installment lending with a new credit card feature, bringing value to cardholders with an option for accelerated payment terms. This is a defensive play to protect an issuer’s portfolio from attrition.