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What is Card as a Service – A Simple Explainer for Businesses

Dubai, UAE - February 25, 2022

In the past, issuing cards to customers was the product of a partnership between a large business and a bank – often referred to as co-branded cards.

Not to mention, this involved high network and processing fees, bureaucratic and infrastructural barriers, and geographic limitations.

But today, the emergence of CaaS business models has made card issuance an accessible pursuit for businesses. Organizations can design, build and launch personalized card programs to match their desired customer experiences, at scale.

Moreover, they can do it in WEEKS rather than months.

But What is CaaS?

Read on to learn more.

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.

It 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.

As an enabler of modern card issuance, CaaS is becoming the key touchpoint facilitating smarter financial services.

Modern card issuance is accelerating and streamlining the process of card creation. Using open APIs, and programmable controls, businesses can customize their own card programs to enable new business models and unique digital experiences.

While modern card issuance can enable multiple use cases, issuing cards to customers empowers organizations to reap the following benefits:

Benefits of issuing your own cards: The Modern Way

A win-win for you and your customers

• Generate new revenue streams by monetising spending

Issuing your own cards will allow you to monetise customer spending by realizing transaction fees every time they use their cards.

• Obtain valuable insights from increased visibility over customer data

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 the 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.

Here are some critical criteria for you to consider and use to evaluate prospective providers:

  1. The strategic fit between your company and your partner
  2. The level of flexibility your partner poses to cater to your desired solution scope and features
  3. Partner's pricing model to match your current and future scale
  4. Ability to help you scale across multiple markets
  5. The quality of the technology stack and key product features
Thinking of launching your own card program?

Unlock the power of financial ownership and issue your own payment cards instantly with SimpliFi, the leading CaaS platform in MENA and Pakistan.

Want to find out more? Get in touch with our team today!