How Does CPI Card Company Work?

CPI Card Group specializes in the secure production of physical payment cards, including credit, debit, and prepaid options. Their operations extend to advanced digital solutions, such as mobile wallet provisioning and fraud prevention tools. The company also offers Software-as-a-Service (SaaS) for instant card issuance through its Card@Once® platform, which has seen significant adoption with over 17,000 installations across more than 2,000 financial institutions in the U.S.

The company's value proposition is built on delivering secure, innovative, and environmentally conscious payment solutions. They emphasize product consistency, reliable execution, and exceptional customer service. CPI's commitment to innovation is evident in their development of eco-friendly card materials and advanced card features.

CPI operates high-security production facilities within the U.S., ensuring that all card manufacturing processes adhere to strict PCI compliance standards. This focus on security is paramount in the payment card production industry.

Innovation is a key driver for CPI, with a focus on developing sustainable card materials like Second Wave® (made from recovered ocean-bound plastic) and Earthwise® (rPVC cards). They also utilize CYPRIS structural color ink, which reduces CO2 emissions by 30-60% compared to conventional inks, and have piloted contactless cards with Infineon's SECORA Pay Green technology. The acquisition of Arroweye Solutions further bolsters their capabilities in on-demand payment card solutions.

A significant milestone was the May 2025 acquisition of Arroweye Solutions for $45.55 million, enhancing on-demand payment card capabilities. This move followed a robust 2024, where net sales increased by 8% to $480.6 million, with the prepaid debit segment seeing a 26% rise.

The company has sold over 350 million eco-focused payment card solutions since their introduction. In October 2024, a pilot program for environmentally friendly contactless cards using Infineon's SECORA Pay Green technology commenced, facilitating easier recycling.

CPI's dedication to sustainability earned it the 2024 Business Intelligence Group Sustainability Initiative of the Year Award for its use of CYPRIS structural color ink. Its innovative LED Cards, which illuminate during contactless transactions, received the 2024 ICMA Élan Award in the People's Choice category.

Despite a 12% decrease in net income to $4.8 million in Q1 2025 due to margin compression, the company has implemented cost-saving measures and reaffirmed its full-year guidance. CPI Card Group's competitive edge lies in its strong brand recognition as a leading U.S. payment card producer, technological leadership, and extensive high-security production facilities.

CPI Card Group is a prominent player in the U.S. payment card industry, serving diverse sectors including financial institutions, retail, and healthcare. It is recognized as a leading entity in payment card production and instant issuance solutions.

Potential risks for CPI Card Group include ongoing margin pressures, integration challenges from acquisitions like Arroweye Solutions, and intense competition within the payments technology sector. Tariff risks also require careful management.

The company anticipates mid-to-high single-digit organic growth for net sales and Adjusted EBITDA in 2025. Investments in market expansion and digital solutions are planned, with a focus on mobile wallet push provisioning and fraud solutions.

CPI aims to be a trusted partner for innovative payment technology, emphasizing customer satisfaction, quality, and efficiency. The company is targeting market share gains in its core areas and expanding into the closed-loop prepaid market.