What is Card as a Service (CaaS)?
Card as a Service, or CaaS, is an up-and-coming card-issuing model that enables companies to easily develop and launch card services as part of their business offering.
Before, companies like airlines usually provided the most well-known use case of credit cards. Their cards are usually developed and powered by traditional banks such as Citibank or Mastercard. However, every time an airline company wants to issue a new card with a new kind of screening process, limitation, or rewards, it needs to renegotiate terms with issuing banks, hammer out the details, and build everything from scratch. The process usually takes two years.
While CaaS is a modern-day approach for businesses to issue payment cards as a turnkey solution without the hassle of navigating complex regulations, numerous partnerships, painstaking integrations and managing ongoing financial operations.
Simply put, CaaS providers offer comprehensive, out-of-the-box solutions for businesses, handling the entire end-to-end card issuance process on their behalf – from managing all entities and processes across the value chain such as banks, card schemes, processors, identity verification to card fulfillment and delivery.
More importantly, the whole process of integration usually takes weeks, not months. CaaS providers trim the time that is needed for clients interested in issuing their cards by taking the process in-house or by working with conventional banks.
As an enabler of modern card issuance, CaaS is becoming the key touchpoint facilitating smarter financial services.