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How to Start a Card Issuing Project: Podcast Episode 14

Writer's picture: VerestroVerestro

Are you a fintech, crypto wallet, lendtech, or any other company looking to enhance your offerings and increase user loyalty? Consider issuing cards to your users! This podcast episode will guide you through the key decisions and steps involved in launching a successful card issuing program. We'll explore the process of issuing both virtual and physical cards, empowering you to bring your card issuing vision to life.




Hey everyone, welcome back, ready for another deep dive. Today we're tackling something that's super relevant if you're in the fintech space, especially if you're thinking about launching a card program. - Yeah, definitely a hot topic right now. Lots of companies are looking to make that move.


- Yeah, for sure. I feel like there's 10-end info out there. - Yeah. - But it can be a bit overwhelming to know where to start.


So I'm gonna try to cut through the noise today. - Absolutely, that's the goal. - All right, so we've got an awesome expert joining us from Verestro, a company that's helped launch card programs. - Yeah, across five continents.


- Five continents. So they definitely know what they're talking about. Welcome to the show, super excited to have you here. - Thanks for having me.


Happy to share what we've learned along the way. - All right, so first things first, for a fintech company that's like, okay, we wanna launch a card program, what's that very first step? Where did they even begin? - Well, I think the most crucial thing is finding the right partner, the right card issuing partner. I like to use the analogy of building a house. - Okay, I like analogies.


- You need that solid foundation before you even think about walls or a roof. - Right, yeah, you can't just start slapping on the paint. - Exactly, so you wanna partner with a solid track record, the right functionalities, the flexibility to adapt, you know, because everyone's needs are a bit different. - Makes sense, one size doesn't fit all in this world.


- Definitely not, and of course, financial stability, right? Like, that's non-negotiable, and you know, we've seen it all at Verestro, working in all these different regulatory environments. It's about finding a partner who really gets it, you know, the global fintech landscape. - Okay, so you've got your partner, you're feeling good, what's next? - Next, you gotta get into the user's head. - Uh-oh, sounds dangerous.


- Uh-huh, not that kind of head. - Okay, good. - You gotta map that user journey. Every step they take from the moment they sign up, how easy is it to onboard? How smooth is that KYC process? - KYC.


- Yeah, know your customer, that whole verifying identities thing, super important for compliance. - Right, to keep things legit. - Exactly. Then, how do they get their card, activate it, manage it, track those transactions, make it intuitive, make it enjoyable.


- Yeah, no one wants a clunky app. - Exactly, a smooth user journey equals happy customers. We have a bunch of resources in our Developer Zone, by the way, helps a lot with integration and making sure those processes are super smooth. - Okay, Developer Zone, check it out folks.


- Next up, I gotta ask about the legal side of things, 'cause that always feels, I don't know, a little intimidating. - Yeah, I get it, it can feel like a maze. But if you approach it strategically, it's manageable. Understanding the regulations in your target market is key, especially those KYC and data collection rules.


- Right, gotta stay on the right side of the law. - Exactly. At Verestro, we use things like selfie verification and document submission, all about compliance and security. But keep in mind, those legal things - they vary a lot from place to place.


So for instance, to do a card issuing contract with us, you'd need a European entity or branch. - Mm, good to know. So better get that legal expert on board early on, it sounds like. - Yeah, for sure.


Worth it to avoid any missteps. - Okay, so we've got our partner, we've mapped our user journey, we've navigated the legal stuff. What's next? - Now let's get technical. API integration and that whole world of PCI DSS compliance.


- Oh yeah, gotta keep that data safe. - Big time. So you have options, you can go the API route, which is flexible. But if you want things super smooth and secure, especially if you've got a lot of users, I'd really recommend SDKs.


- SDKs, okay, noted. And less hassle with those PCI DSS audits, you said. - Yeah, exactly. Can save you a lot of headaches and money in the long run.


Our Developer Zone has resources for that too, by the way. - All right, so, feeling pretty good, we've got our partner, mapped our journey, handled legal, we're integrated securely. But now, the big question, how do we make sure this is all profitable? - Right, gotta make those dollars make sense. It's all about a good P&L analysis.


Look at all your potential revenue, all your costs, break it all down. - Don't just assume that spending a ton equals more profit. - Yeah, it's easy to fall into that trap. Cost effective unit economics, that's the key phrase.


I think of it like, say, a bakery. - Okay, I love baked goods, tell me more. - You wouldn't price your croissants based only on using the fanciest butter. - Well, maybe some would, but yeah, I see your point.


- You got a factor in everything. Optimize that cost per pastry to make sure you're actually turning a profit. Same with card issuing. Look at things like cost per card, cost per transaction.


- Got it. So it's not just about the money coming in, but also how much you're spending to get it. - Exactly. And don't forget, revenue sharing from interchange fees and currency conversions, that can be a big chunk of your profit.


- Wow, okay, so we've covered a lot. Choosing the right partner, mapping that user journey, the legal maze, secure integration, and course making sure it all makes financial sense. - That's the journey. - It is, but hopefully you're feeling a little more equipped to tackle it now.


Any parting words of wisdom for our listeners before we wrap up? - Just that, launching a card program, it's not simple, but it can be really rewarding. At Verestro, we've been fortunate enough to guide a lot of fintech companies through this process. We're always happy to chat, share our experience. So if you're looking for a partner, don't hesitate to reach out.


- That's great. - So huge thanks to our expert for joining us and sharing all these insights. It's clear that launching a card program is a big undertaking, but definitely doable with the right plan and the right people. And for all of you listening, I'll leave you with this.


What's gonna make your card program different? What's that special something you're bringing to your users? Think about it, get creative. And get ready to shake things up in the world of fintech. Thanks for listening, everyone. See you next time.



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