Future of Fintech
Card-as-a-Service providers are paving the way for non-financial service cards
Traditionally, when thinking about card issuing, both a person and a business will consider it as a product of a partnership between an enterprise and a bank – often referred to as co-branded cards. High network and processing fees, bureaucratic and infrastructural barriers, and geographic limitations are involved, which makes cards not easily available to populations.
But today, the emergence of CaaS (Card-as-a-Service) business models has made card issuance an accessible pursuit for businesses. No matter what your business types, scales and sizes are, organizations are able to design, build and launch personalized card programs to match their desired customer experiences.
Brands like Apple, Uber, DoorDash, Instacart, and even sports teams all have jumped on the card issuing bandwagon.
Some entrepreneurs may be considering applying CaaS service to their work flows. Today, we are going to explain what Card-as-a-Service is and why you should use it.
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.
Benefits of issuing your own cards to customers
A win-win for you and your customers.
Revenue growth and product control
Ownership of the credit card allows businesses to expand product structures and create more dynamic rewards, resulting in more diversified revenue streams and greater consumer choice.
Increase customer retainess
Customers are more willing to repurchase with a branded card. And if giving your customers some rewards, there is no doubt that this will increase customer loyalty.
Customer data and more impactful marketing
Modern card-issuing platforms grant you access to a complete set of APIs to gain visibility into valuable customer spending data and key insights from customer lifestyles. These insights can form the building blocks for creating personalized services to develop more meaningful customer relationships.
Tap into new markets and capture a new customer base
Modern card issuing provides you with great control over the card-issuing process to define the best user experience. You can set up and customize card programs to meet your desired use cases – the sky’s the limit! For example, you can tap into consumer credit by providing customers with BNPL cards that are restricted to merchants of your choice.
Choosing the right CaaS provider
Partnering up with modern card issuance service providers is the most efficient way to build, issue and manage card programs. Choosing the right CaaS partner is one of the most important decisions to make.
iPeakoin is a licensed FinTech platform that helps Web3 to thrive. It has now expanded its business to over 180 countries/regions, serving more than 10,000 companies in 2022. In addition to its headquarters in the US, iPeakoin has offices in Hong Kong, Luxembourg, and Singapore, as well as partnerships with top tier banks & financial institutions worldwide. Aiming to build a unified financial infrastructure, iPeakoin brings crypto-backed card to the real economy with scalable CaaS (Card-as-a-Service), which can be integrated into digital businesses’ systems with a few simple codes.
For more details, please visit https://www.ipeakoin.com, or just want to say hi, feel free to send us a note at marketing@ipeakoin.com.