Card-as-a-Service: An integral part of the Fintech ecosystem


Card-as-a-Service: An integral part of the Fintech ecosystem

Traditional card issuing processes can be complex and time-consuming, resulting in various pain points for both issuers and cardholders. It's common for Fintech companies to encounter traditional card processing issues, which can include longer processing times, a lack of flexibility, higher overhead costs, security risks, and a lot of paperwork. Switching to a CaaS (card as a service) system allows you to improve the way you work.

Card as a service (CaaS) has made it easier for cardholders to switch their credit or debit cards without going through the tedious process of applying and waiting for approval from traditional card providers.  

Customers often find more flexible and quicker payment methods. They are also looking for more contactless and touch-free payment options.

A CaaS payments solution provides your cardholders with the option to shift between transactions using both physical and virtual cards. Buy Now Pay Later (BNPL) card payments are another option that customers find to be particularly useful. There is also an emerging trend that non-financial companies to create innovative payment cards from a CaaS model to answer these growing demands.

To meet customers’ expectations, your fintech business should make a switch for the following reasons:

1. Faster to Market on Target Segments

CaaS providers offer a streamlined and automated approach to deploying and managing card issuance infrastructure, thus reducing the time and resources required to launch new programs. This enables businesses to launch new payment card products and services quicker than their competitors. 

2. Less Time for Card Issuing and Processing

With reduced processing time and issuing of cards, you can also minimise the overhead cost of building your digital payment infrastructure. 

3. Effectively Automate Your Processes 

You can virtualise and automate your payment services with extensive card technology. Some merchant processing also provides card readers, devices, and payment gateway solutions to retailers without giving much attention to creating your infrastructure and hiring developers.

4. Improved Card Security and Control

CaaS solution improves the security of card issuance processes by providing advanced encryption and tokenization capabilities, enhanced monitoring, as well as fraud prevention tools. 

5. Cost and Spending Control

You can manage your capital expenditures (CapEx) and operating expenditures (OpEx) by using a CaaS model. You can even maintain and upgrade your card issuance infrastructure without having to spend too much. An expert CaaS provider usually offers cost-effective and scalable solutions. This means that CaaS can be launched sooner to reduce additional upfront investments in hardware and software. 

6. More Flexible Features

Your company can offer flexible CaaS products by customising your card's features, terms, and conditions. This results in more effective targeting of various customer segments and more tailored payment products and services. 

7. Improved Customer Experience

Your business can offer versatile, customised, and innovative payment solutions to customers that can help improve customer satisfaction and loyalty, which boosts your revenue growth.