Technological advancements are not new to the world of Finance. However, the surge in digital innovation and change in modern-day consumer habits has given rise to new, innovative business models.
As consumers seek frictionless transactions and immediacy across all daily experiences, the financial services industry is undergoing a paradigm shift redefining how these services are delivered.
Boundaries between banks, retailers, and customers are blurring day after day. Traditional businesses are embracing financial services on a new level as they integrate financial capabilities into their core assets.
Companies of all types and sizes – large techs, telecoms, software, retailers, logistics companies, and more – have started to invest in embedded finance.
Embedded finance is now the bridge between financial services and end consumers. From buy now, pay later models and integrated insurance services to point-of-service lending and card issuance through card as a service platforms.
What is Card-as-a-Service?
Card-as-a-service or CaaS is a complete card issuing service for forward-thinking companies looking to launch, design, and scale feature-rich payment cards for their customers, employees, and other business stakeholders.
The majority of CaaS solutions provide API-driven experiences that simplify the process of embedding financial services directly into your own ecosystem – making it easy for businesses of all sizes to roll out a variety of card programs quickly across the organization.
How is it powering organization’s to “become financial services companies”?
Embedding financial services into an organization’s business flows not only strengthens existing business offerings but also unlocks opportunities to power new revenue streams, reduce operational costs and drive loyalty.
While many have taken steps in availing new forms of payments across their organizations, others have gone the extra mile and have started issuing their own branded physical and virtual payment cards. This has allowed organizations to acquire more control over financial operations.
The evolution of this infrastructure and approach can be leveraged to support businesses in scaling across multiple markets with ease. Using one set of APIs, businesses can launch in several markets and streamline financial operations across their organization with less dependence on various third-party financial services providers.
Unlock new opportunities whilst solving business challenges
- Gain control over your payments experience
What was once handled by a traditional bank can now be placed under a single digital roof. Having more control over payment processes and the banking journey, businesses can gain a better understanding of consumer payment habits and preferences. As a result, organizations are able to control and personalize payment experiences to better tailor business offerings to consumer needs whilst accessing more data on their customers and building a closer relationship with them.
- Opening up new revenue streams
Businesses can issue branded payment cards for their partners, vendors, & customers to drive an additional revenue stream. Businesses can also earn income on transaction costs, maintenance fees and even earn small percentages of interest by offering lending services or buy now pay later schemes.
- Solving business problems
Cards are a highly versatile payment tool which can be used in various settings to enable B2B payments. A lot of business payments still involve dealing with cash and those that are using digital means find those methods to be inefficient and hard to scale. Payment cards bring global acceptance and trust whilst managing risks through highly customized controls thereby opening up possibilities to enable a variety of use cases.
Where to start?
Losing to more digital-ready competitors is not an option. Customers, employees, and business partners expect companies to facilitate more efficient payment processes and ecosystems – but like anything in the business world, “no one size fits all”.
To make your journey to embedded finance a more meaningful one, you must design a strategy that fits your unique business needs. Here is where you need to start:
- Analyze your organization’s digital needs and decide on the tools to be embedded into your business processes.
- Identify your goals for the Embedded Finance project. In order to pick the right solution, you must first understand your business needs.
- Understand the value chain and decide on your partnership strategy.
- Work with a trusted service provider that focuses on the niche you are looking for to implement your embedded finance needs.
SimpliFi is on a mission to democratize payments in MENA and Pakistan using our homegrown Cards as a Service (CaaS) Platform. Issue your own payment cards across your organization to unlock the power of financial ownership, drive new revenue streams and grow brand equity.
Explore SimpliFi’s card issuance platform or get a demo today.