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BackFuture of Fintech
Launch a card-issuing program without the issues
May 19, 2023
Card issuing is fast becoming one of the most interesting areas of payment. People are used to considering card issuing as a business more about a bank, a fintech or some institutions related to finance. However, card issuing has become a tool for businesses across industries and scales to facilitate global growth.
Take Uber cards, for example, which pay suppliers quicker and boost driver loyalty. Retailers like Amazon and Walgreens also link their branded cards to loyalty programs to eliminate friction for customers and increase the odds of repeat business. Cards are even being issued to employees to facilitate expense management, giving rise to business banking startups like Qonto and Pleo.
Who can launch a card program?
◇ A challenger bank disrupting the status quo, or a company keen to seize new opportunities and offer entirely new card payment products.
◇ A lender wanting to deliver a first-class lending solution by issuing cards so that customers can start spending, straight away.
◇ A brand merchant aiming to increase customer loyalty, eliminate friction for customers and increase the odds of repeat business.
◇ A forward-thinking salary advance provider intending to issue employees with cards so that salaries can be drawn down flexibly, rather than in one lump sum.
The Challenges of Starting a Card Issuing Program
Companies in almost every industry have a reason to issue cards to their customers, however, some industries, such as retail, e-commerce, gaming, fintech, and payroll have many driving factors to issue their own cards.
● Customer needs: One of your objectives will likely be driven by both your current customer base and your desire to attract new clients. As such, customer needs should be top of mind when developing your card offerings and any related debit rewards programs.
● Timeline: How long will a card program take and How quickly do you want to roll out your card offerings? It’s natural to want to get these options out to your clients as quickly as possible. However, rushing the process may cause issues in the long run. From developing a data-informed plan for your card program that captures the current size and demographic of your clientele to determining what benefits and rewards you want to offer, you need a clear strategy. Only once you have outlined a detailed, comprehensive plan should you move forward with the process.
● Costs: Another biggest challenge when setting up your own card program is costs, which is often the major factors of some businesses. The cost includes both time and money. There are costs for program management, vendor costs, development costs, call centers, security, and much more. These costs can easily skyrocket to well into the six figures.
● Compliance: In all cases, there will be important legal compliance considerations you and your employees will need to understand and adhere to for as long as you offer debit card options. This point is especially true if your business plans to offer consumer funded cards, which are prone to fraud and money-laundering schemes. Maintaining compliance can include adherence to expensive PCI and SOC 2 audits.
● Vendor Integrations: Another major challenge is having to integrate with multiple vendors to setup a card issuing program. KYC/KYB vendors, data aggregators, reward vendors, sponsor banks, and program management integrations are just a few. And each of these integrations have a cost associated with them.
● Financial Expertise: Once you get through everything listed above, you need to build the card issuing program. This takes tremendous financial knowledge. From a development, analytics, and workflow standpoint. For non finance-related businesses, they may need to hire another professional team to take the role of program manager.
Benefits of iPeakoin's card program
As you can probably imagine, setting up a card issuing program isn’t very straightforward. It’s a complex, time-consuming, and an expensive solution to undertake. While, through a single integration with iPeakoin, businesses can launch a customizable card-issuing program that optimizes cash flows, eliminates operational inefficiencies, reduces costs, unlocks new revenue streams and builds unique payment experiences.
▶ All of the vendor integrations you need to launch a card program are packaged up in our platform. Save your time and cost to contact with different party vendors.
▶ All compliance, legal, security, and insurance are included.
▶ You can get to market in weeks! Not months or even years.
▶ Our pricing is a fraction of what it costs with our competitors.
▶ Available to businesses of all types and scales.
▶ We even provide an interchange share – so you can earn revenue from your card program!
▶ We offer loyalty and rewards for your new or existing card programs.
▶ And much more!
For more details, please visit ipeakoin.com. Also feel free to send us a note at marketing@ipeakoin.com or https://t.me/ipeakoin (Telegram).
