Totavi Releases In-Depth Market Analysis of U.S. Issuer Processors, Predicts Modern Platform Revenue Will Exceed Traditional Providers by 2034

2025 U.S. Issuer Processor Market Analysis Report includes a first-of-its-kind comparative matrix of processor capabilities, profiles of 10 leading providers, and a 10-year growth forecast.

LOS ANGELES, July 9, 2025 /PRNewswire/ -- Totavi, a leading fintech strategy and advisory firm, today announced the publication of its newest market analysis, 2025 U.S. Issuer Processor Market Analysis, a comprehensive and data-driven examination of the fast-evolving core processor landscape. The report provides a granular look at the functions, trade-offs, and market dynamics behind the processors that power card programs in the U.S. and includes nine detailed figures, tables, and charts across 24 pages of original analysis, providing an extensive comparison of feature sets such as authorization logic, card type support, settlement methods, modular stack design, tokenization, and real-time ledger integration.

A First-of-Its-Kind Comparative Matrix

Totavi evaluates 10 core issuer processors including CoreCard, Episode Six, Galileo, Highnote, i2c, Lithic, Marqeta, Qolo, Stripe, and Zeta. The report includes an extensive side-by-side comparison of processor capabilities: card manufacturing, mobile wallet integration, real-time funding support, international wire compatibility, dispute tooling, KYC flexibility, and more. Readers can quickly compare processor tradeoffs across 40+ discrete criteria.

Additionally, Totavi's analysis spans technical architectures, customer segmentation, product capabilities, and go-to-market strategy.

A Practical Guide

2025 U.S. Issuer Processor Market Analysis serves as a practical guide for teams looking to choose an issuer processor for a new card program, transition from an existing provider, or explore building in-house processing capabilities.

The report is available as part of Totavi's annual Research Subscription ($795), which offers ongoing access to premium insights for fintech operators, investors, and infrastructure providers.

"Processors may be invisible to most cardholders, but they are foundational to any payments product," said Matthew Goldman, Founder of Totavi. "We designed this report to help builders, banks, and fintech platforms make better decisions about the infrastructure that powers their card programs."

Key Findings and Market Predictions:

• $15 Billion by 2034: Totavi projects that the U.S. issuer processor market will grow from approximately $8 billion in 2025 to $15 billion by 2034 in real (inflation-adjusted) terms. This represents a 6.5% compound annual growth rate (CAGR) over the next decade.
  
  
  
  
• Modern Processors to Gain Ground: While traditional providers like Fiserv, FIS, and Jack Henry will grow slowly—from $6.5 billion to $7.5 billion—modern processors including Stripe, Marqeta, and Lithic are projected to grow fivefold from $1.5 billion to $7.5 billion. By 2034, modern and legacy processors are expected to split the market evenly.
  
  
  
  
• Market Expansion: Growth is driven by increasing card transaction volume, broader adoption of embedded finance, and rising demand for modern developer-first platforms. Non-bank issuers, such as marketplaces, SaaS platforms, and gig economy apps are becoming key contributors to this expansion.
  
  
  
  
• Segment Evolution: Credit remains the highest-margin segment, generating nearly 50% of revenue despite a smaller transaction share. Debit is growing in both consumer and B2B use cases, while prepaid remains a niche segment tied to government programs and specialized applications.
  
  
  
  
• Strategic Inflection Points: The report includes operational guidance for companies considering when to work directly with a processor, when to migrate off a program manager, and how to assess build-vs-buy decisions for in-house processing.

Availability

2025 U.S. Issuer Processor Market Analysis is available now as part of Totavi's annual research subscription. To learn more or purchase access, visit www.totavi.com/research

About Totavi

Totavi is a boutique consulting firm specializing in fintech. We bring real operational experience that varies from the earliest days of a startup to high-growth phases and public company leadership. Our services include fintech advisory, product implementation, marketing, and compliance. Learn more at www.totavi.com.

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SOURCE Totavi