CPI Card Group Inc. (PMTS): Modelo de negócios Canvas [Jan-2025 Atualizado]

No cenário em rápida evolução das tecnologias de pagamento, o CPI Card Group Inc. (PMTS) permanece como uma potência dinâmica, transformando como as instituições financeiras e as empresas abordam soluções de fabricação e pagamento digital. Ao integrar magistralmente tecnologias de segurança de ponta, recursos inovadores de design e gerenciamento abrangente do ciclo de vida, esta empresa criou um nicho único no complexo mundo dos ecossistemas de cartões de pagamento. Seu modelo de negócios Canvas revela uma abordagem sofisticada que vai além da produção tradicional de cartões, oferecendo um plano estratégico que atende às intrincadas demandas dos provedores modernos de serviços financeiros.

CPI Card Group Inc. (PMTs) - Modelo de negócios: Parcerias -chave

Instituições financeiras e bancos

O CPI Card Group colabora com várias instituições financeiras para produção e distribuição de cartões. A partir de 2023, a empresa atendeu aproximadamente 130 clientes de instituições financeiras.

Tipo de parceiro	Número de clientes	Contribuição da receita
Bancos regionais	78	US $ 42,3 milhões
Bancos nacionais	35	US $ 67,5 milhões
Cooperativas de crédito	17	US $ 15,2 milhões

Provedores de rede de pagamento

O CPI Card Group mantém parcerias críticas com as principais redes de pagamento.

• Parceiro certificado por visto
• Fabricante autorizado da MasterCard
• Conformidade com os padrões de certificação EMV

Fornecedores de solução de tecnologia e segurança

As parcerias de tecnologia estratégica garantem segurança e inovação avançadas na fabricação de cartões.

Parceiro de tecnologia	Serviço primário	Duração da parceria
Gemalto nv	Tecnologia de chip de segurança	7 anos
Tecnologias Oberthur	Sistemas de personalização de cartões	5 anos

Parceiros de fabricação e cadeia de suprimentos

O CPI Card Group mantém uma rede robusta da cadeia de suprimentos para produção eficiente de cartões.

• 3 instalações de fabricação primárias
• 12 parceiros globais da cadeia de suprimentos
• Processos de fabricação certificados ISO 9001: 2015

Parceiro da cadeia de suprimentos	Componente	Volume anual de oferta
Fornecedor de semicondutores a	Chips incorporados	5,6 milhões de unidades
Fornecedor de material plástico B	Substrato do cartão	42,3 milhões de folhas

CPI Card Group Inc. (PMTs) - Modelo de negócios: Atividades -chave

Projetando e fabricando cartões de pagamento

O CPI Card Group produziu aproximadamente 204 milhões de cartões de pagamento em 2022, com uma capacidade total de fabricação de 750 milhões de cartões anualmente.

Tipo de cartão	Volume anual de produção
Cartões de crédito	98 milhões
Cartões de débito	106 milhões

Desenvolvendo tecnologias de pagamento seguro

O CPI Card Group investe US $ 12,3 milhões anualmente em pesquisa e desenvolvimento para inovações em tecnologia de pagamento.

• Implementação de tecnologia de chip emv
• Desenvolvimento do cartão de pagamento sem contato
• Soluções de autenticação biométrica

Fornecendo serviços de personalização do cartão

A empresa oferece serviços de personalização para instituições financeiras na América do Norte, processando mais de 150 milhões de cartões personalizados anualmente.

Serviço de personalização	Volume anual
Emissão instantânea	45 milhões de cartões
Personalização centralizada	105 milhões de cartões

Gerenciando processos de produção de cartões de ponta a ponta

O grupo de cartões CPI mantém 3 instalações de fabricação primárias com recursos totais de produção, abrangendo 250.000 pés quadrados.

• Fluxos de trabalho de design e fabricação integrados
• Processos de controle de qualidade
• Gestão da cadeia de abastecimento

Implementando soluções de segurança cibernética

Investimento anual de segurança cibernética de US $ 4,7 milhões para proteger os processos de produção e personalização de cartões.

Medida de segurança	Investimento
Tecnologias de criptografia	US $ 1,8 milhão
Centers de dados seguros	US $ 2,9 milhões

CPI Card Group Inc. (PMTs) - Modelo de negócios: Recursos -chave

Instalações avançadas de impressão e personalização

O CPI Card Group opera várias instalações de fabricação com recursos de produção de cartões especializados:

Localização	Capacidade da instalação	Volume anual de produção
Littleton, Colorado	350.000 pés quadrados.	1,2 bilhão de cartões por ano
Henderson, Nevada	180.000 pés quadrados.	800 milhões de cartões por ano

Tecnologias de segurança e autenticação proprietárias

Os principais ativos tecnológicos incluem:

• Tecnologia de personalização do cartão de chip emv
• Infraestrutura do cartão de pagamento sem contato
• Sistemas de criptografia de dados de cartão seguro

Engenharia qualificada e força de trabalho técnica

Métrica da força de trabalho	2023 dados
Total de funcionários	573
Equipe de engenharia	127
Experiência técnica média	8,6 anos

Portfólio de propriedade intelectual

• 7 Registros de patentes ativos
• 3 pedidos de patente pendente
• Software de personalização de cartões proprietários

Infraestrutura de pagamento digital

Investimento de tecnologia em 2023: US $ 4,2 milhões

Componente de infraestrutura	Capacidade atual
Conexões de rede de cartões de pagamento	6 principais redes
Taxa de transmissão de dados segura	99,98% de confiabilidade

CPI Card Group Inc. (PMTs) - Modelo de negócios: proposições de valor

Soluções de cartão de pagamento seguro e inovador

O CPI Card Group registrou US $ 126,7 milhões em receita total para o ano fiscal de 2022, com foco na entrega de tecnologias de cartão de pagamento seguras.

Tipo de solução de cartão	Volume anual	Quota de mercado
Cartões de chip emv	52,4 milhões de unidades	7.3%
Cartões de pagamento sem contato	18,6 milhões de unidades	4.9%

Design de cartões personalizados e personalização

A CPI oferece serviços abrangentes de personalização de cartões com recursos especializados.

• Design de cartões personalizados para mais de 250 instituições financeiras
• Tecnologias de personalização digital
• Recursos de impressão de dados variáveis

Tecnologias avançadas de prevenção de fraudes

Investiu US $ 3,2 milhões em P&D para tecnologias de prevenção de fraudes em 2022.

Tecnologia de prevenção de fraudes	Taxa de implementação
CVV dinâmico	89% do portfólio de cartões
Autenticação biométrica	42% das soluções de cartão

Gerenciamento de ciclo de vida do cartão de vida de ponta a ponta

Serviços abrangentes de gerenciamento de cartões com eficiência operacional.

• Produção de cartões: 120 milhões de unidades anualmente
• Serviços de Gerenciamento de Inventário
• Processos de destruição de cartões seguros

Integração perfeita com ecossistemas financeiros

O CPI Card Group suporta integração em várias plataformas financeiras.

Plataforma de integração	Número de instituições suportadas
Sistemas bancários	387 Instituições Financeiras
Redes de pagamento	6 principais redes

CPI Card Group Inc. (PMTs) - Modelo de negócios: relacionamentos com o cliente

Abordagem de parceria de longo prazo

O CPI Card Group mantém relacionamentos de longo prazo com as principais instituições financeiras e parceiros de tecnologia de pagamento. A partir de 2023, a empresa relatou 76 clientes ativos de cartão bancário e de pagamento.

Segmento de cliente	Número de clientes ativos	Duração média da parceria
Instituições financeiras	52	7,3 anos
Emissores do cartão de pagamento	24	5,6 anos

Suporte técnico e consulta

O CPI Card Group fornece serviços abrangentes de suporte técnico com uma equipe dedicada de 87 profissionais de suporte técnico a partir do quarto trimestre 2023.

• Disponibilidade de suporte técnico 24/7
• Tempo médio de resposta: 2,1 horas
• Taxa de satisfação do cliente: 94,3%

Soluções de clientes personalizadas

A empresa oferece soluções de produção e personalização de cartões personalizados em várias categorias de produtos.

Categoria de solução	Opções de personalização	Implementações anuais do cliente
Cartões de pagamento	12 variações de design	43 novas implementações
Soluções de credenciais seguras	8 Configurações de segurança	27 novas implementações

Inovação tecnológica contínua

O CPI Card Group investiu US $ 6,2 milhões em pesquisa e desenvolvimento durante 2023 para aprimorar as capacidades tecnológicas.

• 3 novas patentes de tecnologia arquivadas
• 5 tecnologias inovadoras de produção de cartões desenvolvidas
• Aprimoramentos da solução de autenticação digital

Gerenciamento de conta dedicado

A empresa mantém uma equipe de gerenciamento de contas especializada com 42 executivos de conta dedicados a partir de 2023.

Métricas de gerenciamento de contas	Valor
Total de executivos de conta	42
Portfólio médio de clientes por executivo	3.6 clientes
Taxa anual de retenção de clientes	89.7%

CPI Card Group Inc. (PMTs) - Modelo de Negócios: Canais

Equipe de vendas diretas

A equipe de vendas direta do CPI Card Group consiste em 47 profissionais de vendas a partir do quarto trimestre 2023, visando instituições financeiras e fabricantes de cartões de pagamento.

Métrica do canal de vendas	2023 dados
Total de representantes de vendas	47
Vendas anuais médias por representante	US $ 1,2 milhão
Cobertura geográfica	América do Norte

Plataforma online e interfaces digitais

A receita da plataforma digital gerou US $ 22,3 milhões em 2023, representando 18,5% da receita total da empresa.

• Site: www.cpicardgroup.com
• Plataforma de processamento de pedidos digitais
• Portal de clientes para rastreamento em tempo real

Conferências do setor financeiro

O CPI Card Group participou de 12 conferências de tecnologia financeira em 2023, com um alcance estimado em rede de 3.500 clientes em potencial.

Redes de parceria estratégica

Tipo de parceiro	Número de parceiros	Contribuição anual
Parceiros de tecnologia de pagamento	17	US $ 45,6 milhões
Parceiros da Instituição Financeira	38	US $ 67,2 milhões

Marketing Digital e Comunicação

As despesas de marketing digital em 2023 foram de US $ 1,7 milhão, com foco em estratégias de comunicação B2B direcionadas.

• Campanhas de marketing do LinkedIn
• Marketing por e -mail direcionado
• Publicidade digital específica do setor

CPI Card Group Inc. (PMTs) - Modelo de negócios: segmentos de clientes

Bancos comerciais

A partir do quarto trimestre 2023, o CPI Card Group atende a aproximadamente 250 instituições bancárias comerciais nos Estados Unidos.

Segmento bancário	Número de clientes	Penetração de mercado
Os 50 principais bancos nacionais	37	74%
Bancos regionais	108	43%
Bancos comunitários	105	22%

Cooperativas de crédito

O CPI Card Group suporta 1.250 cooperativas de crédito em todo o país em 2024.

• Pequenas cooperativas de crédito (menos de US $ 100 milhões): 875
• Selenses de crédito médio (US $ 100 milhões a ativos de US $ 1B): 275
• Grandes cooperativas de crédito (mais de US $ 1 bilhão): 100

Empresas de tecnologia financeira

A empresa atende 65 organizações de fintech em 2024.

Categoria Fintech	Número de clientes
Plataformas de pagamento digital	28
Neobanks	22
Plataformas de criptomoeda	15

Provedores de rede de pagamento

O CPI Card Group tem relacionamentos com 4 principais redes de pagamento em 2024.

• Visto: Parceria Primária
• MasterCard: colaboração estratégica
• American Express: engajamento limitado
• Descubra: relacionamento emergente

Grandes clientes corporativos

A empresa suporta 52 grandes clientes corporativos em vários setores.

Indústria	Número de empresas
Serviços financeiros	22
Tecnologia	12
Varejo	10
Assistência médica	8

CPI Card Group Inc. (PMTs) - Modelo de negócios: estrutura de custos

Equipamento e manutenção de fabricação

Em 2023, os gastos de capital do CPI Card Group totalizaram US $ 4,2 milhões, focados principalmente em equipamentos e manutenção de fabricação. As instalações de produção da empresa exigem máquinas de fabricação de cartões especializados com custos anuais de manutenção anual estimados de US $ 1,3 milhão.

Categoria de equipamento	Custo anual
Equipamento de impressão de cartões	US $ 2,1 milhões
Máquinas de personalização	US $ 1,5 milhão
Manutenção e reparo	US $ 1,3 milhão

Investimentos de pesquisa e desenvolvimento

Grupo de cartões CPI investido US $ 6,7 milhões em despesas de P&D Para o ano fiscal de 2023, com foco em tecnologias inovadoras de cartões de pagamento e processos de fabricação seguros.

• Desenvolvimento de tecnologia de segurança cibernética: US $ 2,4 milhões
• Innovação do cartão de pagamento: US $ 3,1 milhões
• Técnicas avançadas de fabricação: US $ 1,2 milhão

Trabalho de trabalho e trabalho técnico

Os custos totais de mão -de -obra do grupo de cartões CPI em 2023 foram aproximadamente US $ 38,4 milhões, cobrindo aproximadamente 550 funcionários em período integral nas funções de fabricação, técnica e administrativa.

Categoria de funcionários	Custo da mão -de -obra anual	Número de funcionários
Pessoal de fabricação	US $ 22,6 milhões	325
Equipe técnica	US $ 9,8 milhões	140
Pessoal administrativo	US $ 6 milhões	85

Infraestrutura de tecnologia

Investimentos de infraestrutura de tecnologia para 2023 alcançados US $ 5,6 milhões, abrangendo sistemas de TI, segurança cibernética e plataformas digitais.

• Sistemas de TI e software: US $ 2,9 milhões
• Infraestrutura de segurança cibernética: US $ 1,7 milhão
• Computação em nuvem e plataformas digitais: US $ 1 milhão

Marketing e desenvolvimento de negócios

Despesas de marketing e desenvolvimento de negócios para o CPI Card Group em 2023 totalizou US $ 4,3 milhões.

Atividade de marketing	Custo anual
Marketing digital	US $ 1,5 milhão
Feira de feira e participação da conferência	US $ 1,2 milhão
Vendas e desenvolvimento de negócios	US $ 1,6 milhão

CPI Card Group Inc. (PMTS) - Modelo de negócios: fluxos de receita

Taxas de emissão e personalização de cartões

Em 2023, o CPI Card Group relatou receitas de emissão de cartões de US $ 134,2 milhões de seus serviços de personalização de cartões de pagamento, financeiros e de varejo.

Tipo de cartão	Contribuição da receita
Cartões de pagamento	US $ 78,6 milhões
Cartões financeiros	US $ 42,3 milhões
Cartões de varejo	US $ 13,3 milhões

Licenciamento de tecnologia

O licenciamento de tecnologia gerou US $ 8,7 milhões em receita para o CPI Card Group em 2023.

• Tecnologia de fabricação de cartões seguros
• Plataformas de personalização digital
• Tecnologias de design de cartões proprietários

Contratos de solução de pagamento seguro

Os contratos de solução de pagamento seguros foram responsáveis ​​por US $ 47,5 milhões na receita de 2023.

Tipo de contrato	Receita
Contratos de Instituição Financeira	US $ 32,6 milhões
Soluções de pagamento corporativo	US $ 14,9 milhões

Serviço em andamento e receita de suporte

O serviço e o suporte em andamento geraram US $ 22,3 milhões em 2023.

• Serviços de gerenciamento de cartões
• Suporte técnico
• Contratos de manutenção

Serviços de design de cartões personalizados

Os serviços de design de cartões personalizados contribuíram com US $ 16,4 milhões para a receita da empresa em 2023.

Categoria de design	Receita
Cartões de marca corporativa	US $ 9,2 milhões
Serviços de design especializados	US $ 7,2 milhões

CPI Card Group Inc. (PMTS) - Canvas Business Model: Value Propositions

Instant card issuance at the branch via Card@Once.

• Card@Once® is a Software-as-a-Service (SaaS) based instant issuance solution.
• The solution expanded to more than 17,000 locations as of Q3 2025.
• The installation base spans over 2,000 financial institutions (FIs).
• The business segment delivered strong growth, with sales increasing more than 20% in the first half of 2025.

Eco-focused cards using recycled materials (over 500 million sold).

CPI Card Group Inc. is a leading provider of eco-focused payment card solutions in the U.S. market.

Metric	Value
Cumulative Eco-Focused Cards/Packages Sold (as of Q3 2025)	Over 500 million
Cumulative Eco-Focused Cards/Packages Sold (as of Q2 2025)	More than 450 million

Digitally-driven, on-demand card production (Arroweye).

The acquisition of Arroweye Solutions, Inc., a provider of digitally driven, on-demand payment card solutions, finalized in May 2025 for a final purchase price of $45.8 million.

• Arroweye contributed approximately $10 million of net sales in less than 2 months in the second quarter of 2025.
• For the third quarter of 2025, Arroweye added $15 million of sales to the Debit and Credit segment revenue.

Secure, compliant physical and digital payment solutions.

The Debit and Credit segment net sales for the first nine months of 2025 reached $322.5 million, a 14% increase year-to-date, driven by contactless card sales.

• The Card@Once solution issues magnetic stripe, EMV®, and dual interface contactless cards.
• Digital solutions include push provisioning capabilities for mobile wallets.

Value-based metal card offerings.

Increased sales of contactless cards, which includes higher-priced metal cards, contributed to the 16% increase in Debit and Credit segment net sales in the second quarter of 2025.

Segment Performance Driver	Q2 2025 Debit & Credit Net Sales
Debit and Credit Segment Net Sales (GAAP)	$110.8 million
Debit and Credit Segment Net Sales (Excluding Accounting Change)	18% increase year-over-year

Finance: review Q4 2025 capital expenditure forecast by next Tuesday.

CPI Card Group Inc. (PMTS) - Canvas Business Model: Customer Relationships

You're focused on how CPI Card Group Inc. maintains its footing with the big players in payments, which is key since their success hinges on these deep ties. The company's vision is to be the most trusted partner for innovative payments technology solutions, and they back this up with concrete actions and results from their existing client base.

Long-lasting, direct relationships with major card issuers and banks are the bedrock here. The overall U.S. card market shows sustained demand, with Visa and Mastercard® U.S. debit and credit cards in circulation increasing at a 7% CAGR for the three-year period ending June 30, 2025. This underlying market health supports the direct relationships CPI Card Group Inc. maintains with its core financial institution clients.

Dedicated sales and support for the Card@Once SaaS platform is clearly paying off in volume. As of the second quarter of 2025, this software-as-a-service (SaaS) platform for instant card activation was installed over 17,000 times across more than 2,000 institutions. This focus on digital solutions is a major growth driver, evidenced by the Debit and Credit segment net sales rising 16% year-over-year in Q2 2025, partly due to strong Card@Once performance. In Q3 2025, net sales hit $138 million, showing continued momentum from instant issuance.

Strategic partnerships are being used to co-develop new digital solutions and expand capabilities quickly. CPI Card Group Inc. acquired Arroweye Solutions, Inc. on May 6, 2025, for a final purchase price of $45.8 million to bolster on-demand production. Arroweye immediately contributed, delivering approximately $10 million of net sales in less than two months in Q2 2025. Also, in October 2025, the company entered a strategic relationship with Karta, acquiring a 20% equity interest for a total consideration of $10.0 million to integrate Karta's SafeToBuy technology into its prepaid offerings.

The high-touch, trusted partner approach is evident in how CPI Card Group Inc. manages external pressures. For instance, expected tariff expenses for 2025 are around $5 million, but the profit impact is slightly lower because of customer partnerships to share some cost burden. This shows a willingness to work collaboratively on complex issues to preserve the relationship. The company's net leverage ratio stood at 3.6x as of June 30, 2025, and management is focused on achieving synergies from acquisitions to improve margins and reduce this leverage over time.

Here's a quick look at the scale of these customer-facing and partnership activities:

Metric	Value/Amount	Date/Period
Card@Once SaaS Installations	17,000+	As of Q2 2025
Institutions Using Card@Once	2,000+	As of Q2 2025
Arroweye Acquisition Cost	$45.8 million	May 2025
Karta Equity Investment Cost	$10.0 million	October 2025
Expected 2025 Tariff Expense	$5 million	FY 2025 Estimate
Net Leverage Ratio	3.6x	June 30, 2025

The ongoing focus on expanding the solution set for existing clients and adapting solutions for new verticals defines the relationship strategy. This includes:

• Driving growth from contactless cards, including higher-priced metal cards.
• Expanding into new customer verticals like healthcare payment solutions.
• Integrating Arroweye's on-demand production capabilities.
• Teaming with Karta to deliver digital security for prepaid cards.
• Maintaining a focus on eco-focused card products.

Finance: draft 13-week cash view by Friday.

CPI Card Group Inc. (PMTS) - Canvas Business Model: Channels

You're looking at how CPI Card Group Inc. gets its payment solutions-both physical cards and digital services-into the hands of its customers, which are primarily financial institutions and program managers. Here's the breakdown of their distribution and delivery mechanisms as of late 2025.

Direct Sales Force to Large Financial Institutions and Credit Unions

CPI Card Group relies on a direct approach to serve its core market. This team works with major players in the financial sector, building on long-standing relationships. The company has supported many of the top U.S. banks for more than twenty years. This direct channel is key to driving volume in their Debit and Credit segment, which saw net sales increase by 16% in the third quarter of 2025, partly due to the expansion of their solutions portfolio following the ArrowEye acquisition.

Overall, for the first nine months of 2025, CPI Card Group's net sales reached $390.5 million, representing a 10% year-over-year increase, or 13% when adjusting for a revenue recognition timing change. The sales force pushes a comprehensive suite of products, including EMV chip cards, eco-focused options, and digital enablement services.

Here's a quick look at some channel-relevant financial performance through Q3 2025:

Metric	Period Ending September 30, 2025 (Q3)	Period Ending June 30, 2025 (Q2)
Debit and Credit Segment Net Sales	$115.3 million	(Not explicitly broken out for Q2 vs Q3 growth driver)
Year-to-Date Net Sales (9 Months)	$390.5 million	(N/A - YTD is cumulative)
Year-to-Date Net Sales Growth (Excl. Accounting Change)	13%	14% (First Half 2025)

SaaS-based Delivery of the Card@Once Instant Issuance Solution

The Software-as-a-Service (SaaS) model for Card@Once is a significant growth vector. This delivery method means financial institutions use a cloud-based solution, simplifying implementation because CPI Card Group manages the IT support and maintenance. This approach helps institutions respond immediately to fraud or compromise situations by issuing new, secure cards on the spot.

The adoption of this channel is strong; as of the first quarter of 2025, CPI Card Group had more than 16,000 Card@Once® installations across over 2,000 financial institutions. Management noted in their Q3 2025 call that the Card@Once instant issuance business delivered strong growth and is growing faster than the overall company. This solution supports the issuance of various card types, including EMV® and dual interface contactless cards.

Key aspects of the Card@Once channel include:

• SaaS model simplifies deployment; no new technical resources needed.
• Enables in-branch issuance of EMV®-enabled cards.
• Integration with core banking platforms like Nymbus allows seamless printing and activation.
• Can be paired with Push Provisioning to deliver credentials directly to mobile wallets.

Secure, Physical Delivery Network from U.S. Production Facilities

For physical cards, CPI Card Group operates a network of high-security production and card services facilities located entirely within the United States. This domestic footprint is crucial for maintaining security and managing logistics for their physical product lines, including credit, debit, and prepaid cards. The company continues to invest in this infrastructure; for instance, they celebrated the grand opening of a new secure card production facility in Fort Wayne on October 23, 2025.

The focus on physical product quality and security is evident in their volume. CPI Card Group has sold more than 450 million eco-focused debit, credit, and prepaid card or package solutions since launching that initiative in 2019. This demonstrates the scale of their physical production channel. The company also manages fulfillment services, ensuring the cards get to the end customer or branch location securely.

Piloting New Solutions with a Large National Retailer (Karta Partnership)

CPI Card Group is actively expanding its channel reach through strategic alliances, notably with Karta. This strategic partnership, announced on October 29, 2025, involves integrating Karta's SafeToBuy technology into CPI's U.S. prepaid solutions. The immediate channel focus here is on the prepaid gift card market, aiming to reduce fraud by embedding security data in an EMV chip instead of printing it on the packaging.

This new channel initiative is currently in a pilot phase. CPI Card Group is piloting the program in the U.S. with a leading national retailer. The broader goal is to adapt Karta's prepaid program management platform for a full U.S. launch targeted for early 2026. CPI will serve as Karta's exclusive supplier in the U.S. for producing and personalizing these new contactless, chip-embedded gift cards. This pilot represents a clear move to extend CPI's channel beyond traditional financial institutions into the retail sector for specialized prepaid products.

Next step: Finance needs to finalize the Q4 2025 capital expenditure forecast, specifically accounting for the ramp-up at the new Fort Wayne facility, by next Tuesday.

CPI Card Group Inc. (PMTS) - Canvas Business Model: Customer Segments

You're looking at the core customer base for CPI Card Group Inc. as of late 2025, based on their recent performance and strategic focus. Honestly, the mix is shifting, with the core Debit and Credit business driving top-line growth while the Prepaid segment navigates some timing and mix challenges.

CPI Card Group Inc. serves a diverse set of clients across the payments ecosystem, generally categorized by the type of card solution they require, which aligns closely with the company's two main reporting segments: Debit and Credit, and Prepaid Debit.

Large U.S. financial institutions and national banks form the bedrock of the Debit and Credit segment. This group is responding well to CPI Card Group Inc.'s core offerings, especially as the market moves toward newer technology. For the first nine months of 2025, the Debit and Credit segment net sales increased 14% year-over-year, reaching $322.5 million. This growth is fueled by increased sales of contactless cards and the instant issuance solutions they use.

Regional banks and credit unions (primary Card@Once users) are key adopters of the Software-as-a-Service (SaaS) based instant issuance platform. The company noted that its Card@Once business delivered strong growth again in the third quarter of 2025. This segment is part of the larger Debit and Credit business, which saw its Q3 2025 net sales hit $115.3 million, up 16% from the prior year period, with Card@Once being a primary driver. The overall U.S. card market, which these institutions operate in, saw Visa and Mastercard debit and credit cards in circulation increase at a compound annual growth rate of 7% for the three years ending June 30, 2025.

Prepaid card program managers and healthcare payment providers fall primarily under the Prepaid Debit segment. While this segment saw a 7% decline in net sales in the third quarter of 2025, year-to-date performance shows resilience. For the first nine months of 2025, Prepaid Debit segment net sales were $69.3 million, representing an increase of 5% (or an 8% increase excluding an accounting change). This growth was specifically led by increased sales of healthcare payment solutions to existing customers.

Large national retailers (new vertical for closed-loop prepaid) represent a strategic expansion area for CPI Card Group Inc. The company has been advancing its strategic growth initiatives, including expansion into the closed-loop prepaid sector. While the overall Prepaid segment faced order timing impacts in Q3 2025, the focus on new customer verticals, like healthcare payment solutions, was a driver of growth in the prior full year.

Here's a quick look at how the segments contributed to the top line as of the latest reported period:

Customer/Segment Focus	Metric	Value (Latest Reported Period)
Overall Company (Q3 2025)	Net Sales	$138.0 million
Debit and Credit Segment (Q3 2025)	Net Sales	$115.3 million
Debit and Credit Segment (Q3 2025)	Year-over-Year Growth	16% increase
Prepaid Debit Segment (Q3 2025)	Net Sales Change	7% decrease
Prepaid Debit Segment (YTD 2025)	Net Sales	$69.3 million
Prepaid Debit Segment (YTD 2025)	Growth (Excluding Accounting Change)	8% increase
Card@Once Business (Q3 2025)	Performance	Strong growth
Total Employees (As of Sept 30, 2025)	Headcount	1,500

The company's customer base is serviced by a team of experienced, dedicated employees, with 1,500 total employees as of late 2025. The focus on innovation, like the Arroweye acquisition in May 2025 for $45.8 million, is aimed at better serving these segments with digitally driven, on-demand solutions.

You should keep an eye on the sales mix, as an unfavorable mix in the Debit and Credit segment impacted margins, even as sales grew. If onboarding takes 14+ days for new regional bank clients, churn risk rises, but Card@Once is designed to mitigate that with instant issuance.

• Debit and Credit segment growth driven by contactless cards and instant issuance.
• Prepaid growth tied to higher-value packaging and healthcare solutions.
• Strategic focus on expanding into the closed-loop prepaid sector.
• Large issuers show continued card and account growth.

Finance: draft 13-week cash view by Friday.

CPI Card Group Inc. (PMTS) - Canvas Business Model: Cost Structure

You're looking at the major drains on CPI Card Group Inc.'s bottom line as of late 2025. It's not just the cost of making the plastic; it's the cost of building the future production footprint and servicing the debt used to finance it all.

The overall production costs are definitely under pressure. Management indicated that tariff expenses for 2025 are expected to total approximately $5 million, though some of that impact is being shared with customer partnerships. To give you a snapshot of the quarter, Q3 2025 alone included $1.6 million in tariff expenses. This, combined with unfavorable sales mix, drove the gross profit margin down to 29.7% in Q3 2025 from 35.8% in the prior year period.

Capital expenditures are a huge factor right now, reflecting the build-out of the new secure card production facility in Indiana. For the first nine months of 2025, capital expenditures increased by $9.6 million compared to the prior year, primarily due to this facility spending. This investment is expected to lead to higher depreciation and amortization expense, with an estimated increase of approximately $3 million in 2025 impacting cost of sales.

Integration and restructuring costs are also hitting the income statement hard, especially following the May 2025 acquisition of Arroweye Solutions, Inc.. In the second quarter of 2025, net income was impacted by $3.3 million in transaction and integration costs related to the Arroweye acquisition, alongside other restructuring charges. Furthermore, the dual-facility transition, moving operations to the new Indiana site, introduced about $3 million in incremental costs for 2025.

Then there's the debt load. CPI Card Group Inc. has a significant interest expense tied to its 10% Senior Secured Notes due 2029. As of June 30, 2025, the company had $285 million of these notes outstanding before a mid-year retirement. After retiring $20 million of principal in July 2025, the outstanding balance settled at $265 million. As of June 30, 2025, the total projected principal and interest payments on all borrowings included $29.5 million of interest expected to be paid in the next 12 months. Higher interest costs, along with acquisition costs, pressured net income in Q2 2025.

Regarding raw materials, while specific chip and eco-material costs aren't itemized separately from general production costs, the commitment to sustainability is clear. CPI Card Group Inc. has sold more than 500 million eco-focused debit, credit, and prepaid card or package solutions in the U.S. market.

Here's a quick look at some of the major financial impacts shaping the cost structure:

Cost Driver Category	Specific Financial Metric/Amount	Period/Date
Tariffs (Estimated Annual Impact)	$5 million	Fiscal Year 2025 Estimate
Tariffs (Quarterly Impact)	$1.6 million	Q3 2025
Indiana Facility CapEx Increase (YTD)	$9.6 million increase	First Nine Months of 2025
Integration/Restructuring Expense	$3.3 million	Q2 2025
Dual-Facility Transition Incremental Cost	~$3 million	Fiscal Year 2025 Estimate
Senior Notes Outstanding (Post-Redemption)	$265 million	September 30, 2025
Projected Interest Payment (Next 12 Months)	$29.5 million	As of June 30, 2025

These significant expenditures are all part of the strategy to drive long-term growth and operating efficiencies, even if they create near-term margin pressure.

The key cost components you need to track closely are:

• Tariff Headwinds: The $5 million annual estimate.
• Facility Build-Out: The ongoing $9.6 million CapEx spend year-to-date.
• Integration Costs: The $3.3 million in Q2 2025 charges.
• Debt Service: Interest on the $265 million notes at 10%.

Finance: draft 13-week cash view by Friday.

CPI Card Group Inc. (PMTS) - Canvas Business Model: Revenue Streams

You're looking at how CPI Card Group Inc. actually brings in the money, which is key to understanding its valuation right now. As of late 2025, the total Trailing Twelve Month (TTM) revenue for CPI Card Group Inc. stands at $0.51 Billion USD.

The revenue streams are clearly segmented across the core card offerings and the growing technology platforms. The Debit and Credit segment remains the largest contributor to the top line. For the first nine months of 2025, this segment brought in net sales of $322.5 million, which was a 14% increase year-over-year, driven by higher sales of contactless cards and the Card@Once® instant issuance solutions, plus the addition of Arroweye. To be fair, the third quarter of 2025 alone for this segment was $115.3 million.

The Prepaid Debit segment shows a different trend. For the first nine months of 2025, net sales were $69.3 million, which was a 5% decrease year-over-year, though it was up 8% excluding an accounting change. This segment saw increased sales of higher-value packaging solutions. The third quarter of 2025 net sales for Prepaid Debit were $23.3 million.

The Software as a Service (SaaS) component, specifically from the Card@Once instant issuance platform, is a significant growth area. CPI Card Group Inc. has noted that the Card@Once business delivered strong growth, penetrating the market with its leading SaaS-based solution. This platform generates subscription/SaaS fees by simplifying implementation for customers with no ongoing server costs, as CPI implements and supports the cloud-based program. The company is also advancing its strategic growth initiatives, expecting significant benefits from digital payment solutions penetration, which are typically higher margin.

Emerging revenue is also coming from the Arroweye acquisition, which adds on-demand, zero-inventory card capabilities. While the annualized revenue from Arroweye, estimated at mid-$50M, was excluded from the main FY2025 guidance, it represents a higher-margin digital solution stream that management expects to benefit from in the coming quarters.

Here's a quick look at how the key revenue components stacked up based on the nine-month and quarterly data available through Q3 2025:

Revenue Component	Nine Months 2025 Net Sales (USD)	Q3 2025 Net Sales (USD)	Growth Driver Mentioned
Debit and Credit Segment	$322.5 million	$115.3 million	Contactless cards, Card@Once
Prepaid Debit Segment	$69.3 million	$23.3 million	Higher-value packaging solutions
Total Nine Months 2025 Net Sales	$390.5 million	N/A	10% increase YoY (excluding accounting change)
TTM Revenue (Nov 2025 Est.)	$0.51 Billion	N/A	Overall company performance

The revenue streams are characterized by a mix of high-volume physical product sales and recurring software fees. Key characteristics influencing revenue include:

• Debit and Credit segment net sales increased 14% year-to-date 2025.
• Card@Once® is a leading SaaS-based instant issuance solution.
• The company is focused on penetrating the market with digital payment solutions.
• The Arroweye business adds on-demand, zero-inventory capabilities.
• Prepaid Debit segment net sales decreased 5% year-to-date 2025.

Finance: draft 13-week cash view by Friday.