Payment cards are some of the most popular instruments for cashless transactions. Apart from convenience, payment cards provide a lot of benefits to the card issuer.
For a business, payment cards are an effective way to control business expenditures, track spending habits, or even earn revenue (through interchange fees). Not surprisingly, the global credit card payments market has seen a boom in the past few years – in fact, it is set to reach $263.47 billion by 2028 (growing at 8.5% from 2021 to 2028).
Why Traditional Card Issuance is Not Enough
Card issuance is traditionally a time-consuming process. Moreover, in the case of customizations (or future improvements), a complete redesign of the card program might be required – slowing down your entire go-to-market even further.
A traditional issuance solution is not always scalable. For instance, when launching a new card program for a new market, you may have to reimplement your entire payment solution. This means starting issuance from scratch, making the issuance process expensive and time-consuming.
Modern Card Issuance is the Way Forward
Modern card issuance involves the use of APIs for card issuance. An API-first approach helps you build, iterate, and launch your card programs faster. In addition, an API-based card gives you more granular control over transactions, better visibility, and more room to scale.
As a business, issuing payment cards holds a lot of benefits. Here are some of them:
Faster Time to Market
Card issuance is a time-consuming process, especially since a wide range of activities are involved – such as legal agreements, bank approvals, tokenization, etc.
An API-first approach (such as ISAC) gives you all the control you require in the card issuance process. It helps developers take complete ownership of the issuance journey – giving you more visibility and control.
As a result, you can launch the right products at the right place and time.
Security Compliance & Regulations
Compliance is a mandatory requirement for all fintech companies, especially the ones in card issuance. However, compliance norms for card issuance are constantly evolving. Companies must keep pace with RBI’s norms and regulations and take immediate action whenever required.
An API-first approach helps you rapidly implement changes based on government regulations.
As a result, you stay compliant and up-to-date with the ever-changing regulations. This reduces your risk of regulatory fines and non-compliance penalties.
Retention & Engagement
According to Bain & Co, even a 5% increase in retention can generate a considerable increase in profits (about 25%). During a slowdown, companies are more keen on retaining existing customers.
For better retention, understanding your customers is essential. An API card helps you gain relevant information about your customers, to enable customised programs and benefits that helps repeat purchases.
With a card program, you can open up new modes of payments. Multiple payment options means more flexibility and convenience for your customers. Moreover, by streamlining payment options, you can improve your customer experience significantly.
Over the past few years, IaaS has seen increased demand across industries. Many companies have used cards to build loyalty and improve overall customer experience.
An issuance platform can help you fast-track the entire issuance process and stay on top of the ever-changing regulatory requirements.
To learn how ISAC can help you set up your card issuance platform, contact us today.