Card programs have become an innovative way for marketplaces, financial institutions, platforms, and software providers to diversify their revenue streams. A growing demand for embedded financial solutions and technical generalization of core banking services is making this possible.

Businesses inside and outside the financial sector can now launch card programs to manage costs, drive customer loyalty, and monetise new services when customers need them most. It’s called issuing-as-a-service (IaaS).

At Opn, IaaS is a growing part of our ecosystem. Our IaaS provides businesses with Visa cards for use cases such as loyalty schemes (points, credits, miles etc.), private label wallets, digital assets, insurance payouts, corporate procurement, and many more. Ultimately, attaching a Visa card to any kind of stored value that is currently housed in a closed loop program, making it spendable at the millions of Visa locations across the globe.

What is Issuing-as-a-Service (IaaS)?

IaaS helps businesses create, manage, and scale card programs without in-house development expertise. All technical, legal, compliance, operational, and risk management aspects of the card issuing program are readily provided by a certified specialist. IaaS providers can do the heavy technical work, making it easy for businesses to issue virtual and physical cards, underwrite and onboard customers, securely process transactions, and provide comprehensive customer support, including a mobile and/or web app, dispute reposition, tax reporting, and statementing.

How can card issuing benefit your business?

Here’s how businesses can benefit from IaaS.

• More and stickier customers: IaaS can help businesses add value beyond their core product/service. This can help brands strengthen customer relationships and drive long-term loyalty with their existing users. At the same time, attract and acquire new users through the value-added services available on the platform.

• More flexible spending: IaaS breakdown silos and bring interoperability among digital values currently stored in closed-loop ecosystems. To the end users, this would enable endless possibilities of spending, for example, buying a new TV set from Merchant A with airline miles earned and stored with Airline B.

• New revenue: IaaS can also help businesses earn new revenue through interchange fees. These fees are charged to merchants when customers use their cards to make purchases. They can provide a significant source of revenue for businesses that issue cards.

Card programs have a growing number of use cases too.

How can businesses utilize card programs?

Let’s look at several ways brands, lenders, and other businesses can use IaaS in Asia.

1. Enabling new methods of spending for lenders

Consider a lender that has, until now, only disbursed loan proceeds via bank transfers or ATMs before the proceeds could be spent on goods and services. With IaaS, the lender can significantly streamline and enhance ways loan proceeds can be spent, such as issuing virtual or physical cards for online spending and enabling QR code payment at physical locations.

2. Streamline insurance payouts

Insurance companies can also turn to card programs to more efficiently redeem insurance claims. Issuing prepaid insurance cards to claimants can help insurers to reimburse policyholders and speed up the claims process. Alternatively, insurers can issue prepaid cards to enable policyholders to pay for health costs, vehicle repairs, and more.

3. Turn airline miles into dollars

Airlines and airline alliances can also benefit from IaaS. For example, when airlines attach Opn’s rails to their reward programs, miles can be made more useful. Beyond using points for trips, customers can use new cards to spend points (and earn) at millions of locations accepting Visa.

Opn’s difference: build your ideal card program

By choosing Opn for your card needs, you can:

• Quickly embed our IaaS into your existing application/platform/software.

• Configure your card program to your unique business requirements, as they relate to processes around customer onboarding, engagement, pricing and other

• Stay fully compliant, as Opn is a prime member of the Visa network and holder of an e-money license issued by the Bank of Thailand.

With Opn, you can access every tool you need to launch, manage, and monetise your card program — across underwriting, risk management, and clearing and settlement support. Talk to an Opn expert about your card issuing needs today.