With billions of credit, debit and prepaid cards in circulation around the world, they are undoubtedly a permanent fixture in the payments sector. According to Statista, over the two-year period from 2019 to 2021, the total number of credit, debit, and prepaid cards globally increased by 2 billion, reaching 25.2 billion cards, with this volume projected to grow by 21% between 2021 and 2025 before stabilising.
Further on this, the payments landscape has evolved to include a wide array of digital payment methods beyond just traditional cards. These include enabling payments via SMS on mobile phones, "Buy Now, Pay Later" financing schemes, mobile wallets, contactless payments leveraging Near Field Communication technology, QR code-based transactions, and cryptocurrency payments.
As these trends continue developing, a prominent feature on the landscape is customizable white-label cards, which while tailored to the unique needs of the client, can incorporate any of these methods mentioned above. Let’s explore the white-label card market.
What is a white-label card?
To recap, white-label products and services are made by a third party but sold under a distinct brand, allowing that brand to seamlessly use the infrastructure already established by the third party. This practice has expanded beyond retail into the financial sector, enabling businesses to offer their own branded payment cards.
With white-label card issuing, a company can issue cards under its own branding, while the underlying functionality and processing are provided by third-party services. This allows the business to introduce branded cards without the complexity of obtaining a separate issuing licence required in the regulated financial sector.
As an example, in 2023, Bitfinex, a prominent cryptocurrency exchange platform, partnered with Tap to offer a white-label prepaid card solution. This allowed Bitfinex to provide its clients with a branded payment option while generating a new revenue stream, leveraging Tap's underlying financial infrastructure.
The many white-label card solutions
White-label payment cards come in various forms to suit diverse financial needs:
Debit cards
Provide access to bank account funds for daily transactions and ATM withdrawals.
Credit cards
Allow borrowing up to a limit, similar to traditional credit.
Prepaid cards
Loaded with a set amount for budgeting and spending control.
Virtual cards
Exist only digitally for secure online payments.
Payroll cards
Where employers directly deposit wages, eliminating the need for cash or direct transfers.
Expense cards
With specific purposes and spending limits or restrictions, like for business expenses.
The advantages of white-label cards for consumers
While the benefits of white-label cards are typically associated with businesses, there are several advantages for the consumer, too.
- Customised perks
White-label cards provide tailored rewards, discounts, and exclusive offers to enhance the shopping experience and deliver savings.
- Streamlined shopping experiences
These cards can streamline purchases within specific stores or brands, making transactions convenient and focused on preferred retailers.
- Improved credit access
Consumers with diverse credit profiles can often access white-label cards, enabling them to build or improve their credit history through responsible usage.
The advantages of white-label cards for businesses
White-label card issuing provides businesses with several key advantages:
- Distinctive branding
Cards can be tailored to match the business's branding, enhancing visibility and customer recognition.
- Quick market entry
Partnering for white-label issuance enables a quick introduction of new card offerings, establishing a market presence before saturation.
- Reduced development costs
Businesses can offer branded cards without the expense of developing a full card program from scratch, instead leveraging already established payment infrastructure.
- Increased customer engagement
Branded cards with rewards, discounts, or exclusive benefits can foster loyalty and repeat business with new or established customers.
- Seamless operations
By tapping into an established infrastructure, businesses ensure seamless functionality, security, and dependability for cardholders.
Industries utilising white-label cards
White-label card issuing has emerged as a versatile solution, catering to the needs of diverse industries, from neobanks and retailers to gig platforms and fleet management.
Retail and E-commerce
White-label credit programs allow retailers to provide customers with relaxed payment terms, encouraging higher spending through the convenience of deferred payment. Customers often earn loyalty rewards, fostering repeat business. Retail giants frequently offer private-label credit cards, such as Amazon's virtual cardless solution and its Prime Store Card.
Neobanks
Many neobanks have adopted white-label card solutions, like Revolut, enabling seamless multi-currency spending, especially for international travel. Revolut empowers customers with full control over their banking experience, offering a choice between NFC and magnetic stripe payment preferences.
Corporate cards
For large organisations, white-label corporate credit cards integrated into expense management programs can streamline processes, eliminating the need for manual tasks like expense reporting and payroll management.
Fuel cards for fleets
Fleet white-label cards are specialised payment solutions tailored for businesses operating vehicle fleets. These cards, often offered in collaboration with financial institutions, streamline expense management and provide benefits like fuel discounts.
Gig economy
As gig platforms continue to rise, integrating white-label card solutions has become a notable advancement. Fiverr, a freelance services platform, has embraced white-label cards to enhance user experience, enabling swift transactions and access to earnings.
The current state of the white-label card sector
The white-label card market is experiencing substantial growth and innovation, presenting significant opportunities across industries. These white-label solutions, including debit, credit, and prepaid cards, enable companies to customise payment gateways and card products as their own, without the overhead of building infrastructure from scratch.
Businesses like e-commerce platforms, SaaS providers, financial institutions, and online marketplaces commonly benefit from white-label cards. These offerings allow companies to strengthen their brand, enhance customer loyalty, and unlock new revenue through tailored loyalty programs and rewards.
A key advantage of white-label cards is their adaptability. They support various payment methods, accommodate international transactions, and integrate seamlessly with existing systems, providing a streamlined customer experience. This flexibility extends to virtual cards, which are gaining popularity for their ease of use in digital payments.
In summary, the white-label card sector offers a robust platform for businesses to expand payment solutions with minimal infrastructure investment, enhancing their service offerings and customer engagement.
For more information on issuing your own white-label card, you can learn more about Tap’s business services on the website here and contact Tap here.
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