Every year dozens of businesses are interested in the issue of how to issue their bank card. Entrepreneurs interested in this topic. it is not getting smaller, they are interested in everything connected with the creation of their own card program. Before approving a brand or business credit card program, issuers carefully assess business opportunities to predict the likelihood of success. Below is information on how to issue a card under your own brand.
Why do you need your own card program
Your own card program is prestige. Not many brands have it, and those that do are most valued by customers. Small businesses cannot afford their own card program, while medium and large businesses can. The issue of payment cards according to the White-Label model is in the greatest demand among entrepreneurs.
Creating your own card program is a great opportunity to increase customer engagement in the business and stimulate additional sales. Each business uses its functionality differently, but most offer special prices and bonuses in their establishments.
The issue of payment cards according to the White-Label model is an excellent marketing ploy for any medium and large business that still does not have an additional marketing accelerator of sales. Creating your own card program can significantly increase sales in your retail outlets. Our experts can help you organize the issuance of branded cards.
What type of business most often issues a card under its own brand?
Financial license - companies that can get it can start issuing a card under their own brand. Creating your own card program begins with obtaining a banking licensing or electronic money issuance license (EMI). Unfortunately, companies without these licenses cannot issue credit cards. Most often, the creation of your own card program is carried out by:
- Mobile operators.
- Postal service operators.
- Money transfer operators.
- Financial startups.
- Retailers with a large customer network.
Creation of your own card program is easy to customize. You independently choose the functionality, appearance and other nuances. Each credit card can have its own IBAN number, as well as be multicurrency. Most organizations create their own unique designs. We are sure that you have come across co-branded credit cards more than once in your life, they symbolize the prestige of the company.
The service provider provides all the necessary infrastructure for the smooth functioning of your system. Legal, technical and logistic issues are decided by the service provider. Its infrastructure includes:
- Gateway Visa, MasterCard, UnionPay.
- Applications for mobile devices.
- Payment processing.
- Customer management.
- Fraud control and anti-fraud system.
- AML and KYC.
- Agreements between the provider and the partner (you).
- General conditions of use.
Types of card programs and their capabilities
There are 3 types of cards: virtual, plastic co-brand and plastic White Label. All 3 types differ in capabilities and launch speed. Our specialists can help with the creation of maps. They have extensive experience in this area and know all the intricacies of issuing cards under their own brand. If you need qualified support, we will provide it.
Features of launching with virtual credit cards:
- Binding to devices - does not physically exist, it binds to the phone.
- Convenient payment process for the client - you can pay from your phone / smart watch.
- Very fast launch compared to plastic co-brand and White Label credit cards.
Features of launching with plastic co-brand credit cards:
- Credit cards are issued jointly with a service provider - the plastic credit card will contain the name of the service provider, the name of your brand and the logo of the payment system.
- Physical form.
- Faster startup compared to plastic White Label credit cards.
Features of launching with plastic White Label credit cards:
- Credit cards are issued under our own brand - your logo and the logo of the payment system will be on the credit card.
- Physical form.
- The start of issuing credit cards according to the White-Label model takes longer than co-brand credit cards.
Contact our specialists for advice to solve any problems that may arise. Each of the above listed species has its own pitfalls, our experts will inform you about them. They can also oversee the issue of the card under their own brand so that the process goes as smoothly and without incidents as possible.
What a credit card issuer looks for before launching a co-brand card program
Most brands are interested in the question of how to issue their bank card, but they do not think about the fact that only 4 out of 10 applications for issuing cards are approved by issuers. Our experts can advise you on the objectivity of launching your co-brand card program, select the best service providers and monitor the process at all stages of implementation. There are 6 key elements that issuers take into account to determine launch potential.
- Brand Popularity
- Client base size
- The number of points of contact with the audience
- Sales dynamics
- The target audience
- Objectives of the card co-branding program
A popular business is a strong business. If the business is popular, then the new credit cards will be very popular. It makes no sense for issuers to work with small and weak businesses, since this will not bring them much profit. Issuers produce millions of cards a year and it is not profitable for them to produce cards for several thousand customers of a particular business. Your brand strength and customer loyalty are the main motivators for issuers.
Most issuers prefer brands with a large customer base that have a lot of potential. The issuers that will manage the co-branded credit cards require the business to be able to generate at least 15 new credit cards a year. It may seem that 000 a year is not that much, but only 15 out of 000 applications are approved by issuers. This indicates that most brands are unable to generate that many new credit cards. Reaching 4 new credit card holders a year requires an extensive customer base and strong customer promotion.
Issuers prefer brands that have more customer touchpoints to promote a co-branded card program (website, email, physical stores, customer support, etc.) Traditional promotion channels are less effective than big brand touchpoints with the audience. Brands have a lot of influence over their audiences. This is why brands that offer a broad base of customer touchpoints are in high demand among issuers.
Co-branded card programs are designed to create value and reward members. Most of them involve the accumulation of bonus points for all purchases. If the frequency of purchases of your product is minimal, or if the average check size is very small, there will be little benefit. Co-branding programs that do not provide the ability to accumulate a large number of points will not be competitive in the market.
The potential of using the card program depends on the target audience, respectively, the better the income, education, marital status of the target audience, the better result can be obtained using the card program. Brands with strong target audiences are more likely to receive approval to issue a card under their own brand. If you have a weak target audience, the issuer may perceive this as a capacity limitation.
First of all, co-branded cards should be considered as a tool to activate additional customer spending. Card programs are designed to reward members for purchases in offline or online stores. Issuers make a significant contribution to the creation of credit cards, it is aimed at maintaining a competitive reward system for their owners.