Want to launch your own branded card program? We break down the what and how—unlock new revenue, boost loyalty, and stay ahead in the digital payment game.
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Ever wondered how companies launch those shiny credit cards with their logos on them? Let's dive into the world of card programs and break down everything you need to know to launch one successfully.
What's a card program, anyway?
Think of a card program as your business's very own payment ecosystem. It's like having your own mini-bank, but without the vault, technical infrastructure and security guards. Companies use card programs to offer payment solutions to their customers or employees, whether a store credit card, a corporate expense card, or even a digital wallet.
As you’ve probably figured, the financial world is quickly moving away from cash, and card payments are becoming the norm. In fact, they're now as essential to business as having a product, website or social media presence.
Why should your business launch a card program?
Launching a card program isn't just about joining the cool kids' club – it's about creating real business value and heightened exposure. Here's what you can achieve:
Keep your customers coming back
Remember those loyalty cards from your favourite coffee shop? Card programs take that concept to the next level. When customers have your card in their wallet, they're more likely to choose your business over competitors. Plus, every time they pull out that card, they (and everyone else around) see your brand.
Show me the money!
Card programs open up exciting new revenue streams. You can earn from:
- Interest charges (if applicable)
- Transaction fees from merchants
- Annual membership fees
- Premium features and services
- Insights and information on spending habits
Know your customers better
Want to know what your customers really want? Their spending patterns tell the story. Card programs give you valuable insights into customer behaviour, helping you make smarter business decisions.
Understanding the card program ecosystem
Let's break down the key players in this game:
The dream team
Picture a football team where everyone has a crucial role:
- Card networks (like Visa and Mastercard) are the referees, setting the rules
- Card issuers (like Tap) are the coaches, making sure everything runs smoothly
- Processors (overseen by Tap) are the players, handling all the transactions on the field
Open vs. closed loop: what's the difference?
Open-loop and closed-loop cards differ in where they can be used and who processes the transactions. Let’s break this down:
Open-loop cards:
These cards are branded with major payment networks like Visa, Mastercard, or American Express, and are accepted almost anywhere the network is supported, both domestically and internationally.
Examples: Traditional debit or credit cards, prepaid cards branded by major networks.
Pros: Wide acceptance and flexibility.
Cons: May come with fees for international use or transactions.
Closed-loop cards:
Cards issued by a specific retailer or service provider for exclusive use within their ecosystem. These cards are limited to the issuing brand or select partners.
Examples: Store gift cards (like Starbucks or Amazon), fuel cards for specific gas stations.
Pros: Often come with brand-specific rewards or discounts.
Cons: Limited to specific merchants; less flexibility.
Challenges that may arise
Let's be honest – launching a card program isn't all smooth sailing. Here are the hurdles you'll need to jump:
The regulatory maze
Remember trying to read those terms and conditions? Well, card program regulations are even more complex. You'll need to navigate through compliance requirements that would make your head spin.
Security
Fraud is like that uninvited guest at a party – it shows up when you least expect it. You'll need robust security measures to protect your program and your customers.
We’ve designed our card program to handle these niggles, so that you can bypass the challenges and reap the rewards. With a carefully curated experience, we take care of the setup, programming and hardware so that you can focus on the benefits and users.
Closing thoughts
Launching a card program is like building a house – it takes careful planning, the right tools, and expert help. But when done right, it can become a powerful engine for business growth.
Contact us to get started on building a card program tailored to your company. After all, the future of payments is digital, and there's never been a better time to get started.
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When referring to the yield on an investment, this indicates the earnings generated over a certain period of time. It is generally presented in percentage form and includes the interest or dividends relevant to the initial investment.
While returns are calculated using the difference in value at two specific points in time, the yield will calculate the total (net) value earned over a period of time. This provides an invaluable tool in helping you understand the potential value of an investment.
Basic yield is calculated as the net realised return divided by the initial investment amount. For example, if an investor bought $100 worth of Bitcoin which grew to $2,000 in the next year, then the formula would look like this:
$1,900 / $100 = 19
-> which translates to 1900%.
There are several different formulas based on the type of yield you wish to calculate. These include:
- Yield on Stocks
- Yield on Bonds
- Yield to Maturity
- Yield to Worst
- Yield to Call
A high yield isn’t necessarily a good thing. Should the market’s decline or the company pays out high dividends the yield will still reflect as high. Always do your own research when considering an investment, or trust a financial advisor.
Since stablecoins emerged in the crypto sphere, many have questioned their legitimacy. While cryptocurrencies are perhaps more frequently used as a tool for value storage rather than a means of transaction, coins (or any financial products) that cannot appreciate in value certainly raise several questions. So why have stablecoins become so popular among businesses and individuals alike? Below we're taking a look at their use cases and reporting on whether they're the safe haven of crypto.
What are stablecoins?
Before we continue, let's clarify what stablecoins are. These types of cryptocurrencies are "stable assets" that have their value pegged to a fiat currency or commodity. This might include the US dollar, Euros, the price of gold or even other cryptocurrencies. So while Bitcoin (BTC) and Ethereum (ETH) are subject to bouts of volatility, stablecoins remain consistent with the price of the money they are pegged to.
Stablecoins are not to be confused with CBDCs (central bank digital currencies) which are operated by a government-controlled organisation, usually a country's national bank. Stablecoins are controlled by a company and utilise blockchain technology to facilitate transactions, store the relevant data and maintain security.
Stablecoins' economic policy ensures that they maintain their value through the use of smart contracts, algorithms and reserves. For each Tether in circulation, for example, one US dollar needs to be held in a reserve account. These types of cryptocurrency tokens provide a reliable and non-volatile means of making payments with the companies issuing them regulating the circulating supply.
What value do Stablecoins provide?
While many might not initially see that value in a fiat-pegged cryptocurrency, stablecoins are actually hugely useful in a largely volatile market. Let the current top 5 biggest cryptocurrencies based on market cap in the industry be an indication, with two of the five being stablecoins.
As stablecoins utilise blockchain technology, the coins naturally inherit all the characteristics of seamless and fast digital transactions (as well as transparency when it comes to transactions). Much like traditional digital assets, stablecoins can be transferred across borders instantly, a much faster and cheaper alternative to using fiat currencies and without the chance of price swings. Users, whether consumers or businesses are able to buy, store and sell stablecoins as they would any other cryptocurrency on the market.
For example, should you wish to pay a business in another country for services rendered or any other expense, it would prove to be much faster and cheaper to use a stablecoin than to send your local currency via traditional banking services. Stablecoins offer a much more streamlined means of completing the job.
Stablecoins also provide an entry into exchanges that don't work with fiat currencies, providing a reliable means of trading on those platforms. Stablecoins have also come to be known as "risk-off" assets, giving newer traders a chance to "test" the markets without the volatility.
This innovation in the blockchain space has opened many new markets to the use of cryptocurrencies, certainly more mainstream markets across a wide range of countries. As information regarding how they work spreads, more businesses have opened their mind to using them in everyday working life. Stablecoins have also become a popular option with users trading on DeFi (decentralised finance) platforms, providing a secure and efficient means of using the products.
Are stablecoins the safe haven of crypto?
In essence, yes. Since the advent of stablecoins (marked by the launch of Tether) in 2014, there has been a number of new stablecoins to emerge, resulting in more confidence in crypto markets. This has equated to more movement and trade volume, and a lower risk management sector.
So while one isn't going to make huge returns (if any) on stablecoins, they bring value to the market due to their stability and transaction ability.
As stablecoins are used by traders to hedge against falling markets, they provide a safe haven for their digital funds until the markets return to normal levels. Businesses around the world use stablecoins as they provide a faster and cheaper means of settling bills, allowing them to harness the power of blockchain technology without the worry of prices rising or falling in a short space of time.
Tap into stability
Tap can support your market entry endeavors by providing a platform to include a variety of assets in your portfolio. Whether you're considering accumulating stablecoins during market shifts or looking to engage in various transactions, Tap offers a streamlined experience. You can easily acquire, sell, trade, store, and manage widely utilized stablecoins like Tether (USDT) and USD Coin (USDC), all from a single secure platform.
The global financial crash in 2007 was the catalyst for the creation of Bitcoin. Designed to provide a decentralized way in which people can manage their own money, digital currencies slowly infiltrated the greater financial markets.
Almost a decade later, crypto adoption is at its highest and for the first time challenging traditional financial institutions and their product range. So, which is better? Let's explore the pros and cons of each category.
Blockchain technology has seen an incredible increase in interest in the last few years. While it provides a universal backbone relevant to almost any industry, it has also brought the world cryptocurrencies, NFTs, decentralized finance (DeFi) and other digital assets.
Tackling existing centralized monetary challenges, blockchain technology and digital currencies are two of the greatest inventions of the 21st century.
Digital currency versus banking
Cryptocurrencies are decentralized digital currencies that can be used to exchange goods and services as well as a store of value. They're typically acquired through crypto exchanges and kept in secure crypto wallets. These virtual currencies are autonomous, operate in a secure manner with little human interaction, and are increasingly considered the future of finance.
The predominant financial systems in the world are currently banks. They provide financial services to those that meet their requirements, including loans, savings, and other financial services.
However, unlike cryptocurrencies, they have several problems core to them being centralized and susceptible to biases. They're also slower than cryptos, and some of them charge exorbitant interest rates on loans as well as routine purchases.
The pros and cons of the Banking system vs digital currencies
There has been little development in the banking sector in the last several decades, so while the products are useful there has been very little innovation in the space. Below we outline the current challenges that the traditional systems face when compared to the advantages of a digital currency.
Financial Inclusivity
Banks are notorious for requiring lengthy paperwork and in-depth background checks. They are also known to provide different products and limits to different groups of people, including payment durations, soft loans, limits, etc.
When creating the digital currency Bitcoin, Satoshi Nakamoto wanted to counteract this financial inclusivity pertaining to fiat currencies and the greater financial system and instead provide a financial product available to all. Cryptocurrencies, therefore, do not require any paperwork or identification to operate or open a digital wallet.
While buying digital assets on an exchange will require personal information, they do not require any background checks or credit scores. Unlike in the traditional financial system, engaging in crypto markets is also not exclusive to location, allowing anyone from any corner of the globe to immediately access the digital payment systems.
Accessibility
Banking institutions operate within certain hours and are closed on weekends, meaning that transactions can sometimes take days to clear. They will also typically require an in-person authentication for very large transactions, and affect the remittance markets in the global financial system.
Cryptocurrencies on the other hand operate 24/7 (even on public holidays) as they are maintained by members all around the world. Cryptocurrencies provide zero downtime with unlimited amounts and do not require third-party authentication before making transactions. One digital currency can send value to the other side of the world in minutes, requiring no in-person authentication.
Security
The banking industry, particularly online systems, are susceptible to being hacked, alongside fraudulent activities and money embezzlement. While this is not always the direct fault of the central bank or financial institutions, it has become a common problem as ill actors have learned how to navigate the security systems and trick the owners of these accounts.
Through the use of blockchain technology, transactions cannot be intercepted or reversed, and are handled in a peer-to-peer nature ensuring that they do not go through a third party for authentication and require minimal human interference.
Fees and Transaction Times
During transaction periods, banks often add on extra costs and taxes. When sending and receiving money, banks frequently charge very high transaction fees and taxes, especially when conducting international remittances. These transactions also take a long time to clear due to their sluggish procedures, especially for large amounts of cash.
Cryptocurrencies provide an excellent solution to the remittance markets as they provide fast and cheap transactions. Blockchain technology ensures that they clear in several minutes (depending on the cryptocurrency and the network’s congestion at the time) and that they are sent directly to the recipient’s wallet (as opposed to waiting for the receiving bank to clear the transaction).
Diversification
Traditional banking services generally lack significant diversification options due to their competitive pricing structures. However, cryptocurrencies enable users to engage with multiple products simultaneously, which can provide opportunities for leveraging various networks and creating portfolios with reduced risk concentration.
Smart Contracts
Another advantage that blockchain currently holds over traditional banking systems is the use of smart contracts. Smart contracts are digital agreements that automatically execute once predetermined criteria have been met. Leveraging smart contracts in the financial services industry offers a seamless and entirely decentralized approach to modern banking.
Which is Better: The central bank or digital assets?
Comparing central banks and digital assets reveals intriguing aspects of both systems. Banking systems have become an integral part of modern society, underpinning economies and facilitating everyday financial transactions. They offer stability, regulatory frameworks, and familiarity to the masses.
On the other hand, cryptocurrencies introduce a realm of innovation. Their decentralized nature challenges traditional financial paradigms, enabling secure and direct peer-to-peer transactions. Additionally, cryptocurrencies empower novel applications such as smart contracts, decentralized finance (DeFi), and tokenization of assets.
Selecting one over the other isn't straightforward due to their contrasting strengths. Central banks provide stability and a well-established foundation, while digital assets spark possibilities for disruption and financial inclusivity.
Presently, these financial systems coexist synergistically. The banking system maintains its role as a bedrock for economic operations, while digital assets complement by offering alternative avenues for value exchange and financial exploration. As both systems continue to evolve, it's likely that their interaction will shape the financial landscape in intricate and unexpected ways.
Why not use both? Tap offers the perfect solution to merging the best of both worlds through an innovative alt-banking mobile app. Through the app, users can load both fiat and cryptocurrencies into their unique, secure digital wallets and use both interchangeably to pay bills, send money to friends, and even earn interest. Get the best of both worlds by enjoying the benefits of both the traditional banking systems and cryptocurrencies.
Why not harness the strengths of both paradigms? Embracing this dual approach, Tap presents a groundbreaking solution that seamlessly blends the attributes of both money accounts and digital assets within an innovative mobile application. Tap empowers users to effortlessly load fiat currencies alongside cryptocurrencies into their individualized, secure digital wallets.
This fusion enables users to fluidly alternate between these assets for various purposes, such as settling bills, conducting peer-to-peer transactions, and even capitalizing on interest-earning opportunities. By embracing this convergence, you can truly enjoy the advantages offered by both traditional finance and the dynamic potential of cryptocurrencies.
We are delighted to announce the listing and support of Lido (LDO) on Tap!
LDO is now available for trading on the Tap mobile app. You can now Buy, Sell, Trade or hold LDO for any of the other asset supported on the platform without any pair boundaries. Tap is pair agnostic, meaning you can trade any asset for any other asset without having to worries if a "trading pair" is available.
We believe supporting LDO will provide value to our users. We are looking forward to continue supporting new crypto projects with the aim of providing access to financial power and freedom for all.
Lido's liquid staking service allows users to tap into the benefits of staking rewards without compromising their tokens' liquidity. Lido aims to empower users to put their staked assets to use, supporting a number of PoS cryptocurrencies. The platform offers a liquid staking solution that provides users with a system that allows them to earn rewards on staked coins while also receiving a tokenized version of the staked coins which can generate returns in other DeFi protocols.
The Lido DAO token (LDO) is an ERC-20 token, the native utility token to the Lido protocol used to reward users. The token has a total supply of 1 billion tokens and serves three primary functions.
The LDO token grants holders with governance rights in the operations of the Lido DAO, as well as the removal or addition of Lido node operators and helping with the management of fee parameters and distribution.
Get to know more about Lido (LDO) in our dedicated article here.
The Curve protocol and Curve DAO token form another innovative project to come from the DeFi movement and one that provides a particularly unique and well-designed concept. Improving on functionalities that DeFi platforms like Uniswap and Sushiswap have otherwise neglected, Curve focuses on providing a viable alternative solution to traditional financial platforms in the blockchain industry.
The Curve Finance platform, launched in January 2020, later released a decentralised autonomous organisation (DAO) alongside the Curve DAO token eight months later. CRV functions as the in-house token of the platform.
What Is Curve DAO (CRV)?
The Curve platform, formally known as Curve Finance, provides traders with a decentralised exchange on which to swap digital assets. Curve aims to provide minimum price slippage between two tradable crypto assets by focusing on stablecoins or assets of similar value. Through an automated market maker (AMM) and focused smart contracts, the decentralised exchange is able to manage liquidity.
While the platform can be compared to Uniswap, in reality, it has some key differences and a much higher amount of locked liquidity. The platform and its liquidity providers are more focused on stablecoins and other coins of that nature. CRV tokens fuel the network and are a tradable asset for crypto users.
The Curve DAO provides more decentralised governance to Curve's trading platform. The Curve protocol has grown into a well-respected financial asset within the DeFi ecosystem with its strong DeFi protocol.
Who created the Curve protocol?
The Curve platform was created by a Russian scientist with ample experience in the crypto industry. Michael Egorov both founded the platform and acts as its CEO. He previously co-founded a crypto business focused on building privacy-oriented protocols and infrastructure, NuCypher, in 2015, as well as LoanCoin, a decentralised bank and loans network.
As of August 2020, Egorov holds 71% of the governance tokens after locking up a large amount of CRV tokens in response to yearn.finance’s increasing voting power in the Curve network. In a statement made later, Egorov admitted to “overreacting”.
How does Curve work?
Launched prior to Uniswap V2, Curve Finance operates similarly to the DeFi platform but has implemented some key differences. The decentralised exchange differentiates itself from the original AMM platform by innovating the liquidity pool trading structure and relevant smart contracts.
The Curve DAO trading platform is managed by a mathematical function called a bonding curve, which is designed to let cryptocurrencies trade for the best possible price amongst each other. Bonding curves are also used by other DeFi trading platforms, like Uniswap.
Due to the Curve DAO platform being primarily focused on stablecoins, its bonding curve is specifically focused on these pegged digital currencies and is able to trade a larger amount of stablecoins with less change in their relative prices in a liquidity pool.
Lending pools
In order for the Curve DAO platform to operate, it requires a group of users who are willing to lock up their cryptocurrencies in order for them to be traded by others. The platform provides a return on their coins plus a portion of the fees from trades when incentivizing liquidity providers.
The platform manages the coins in the liquidity pools by making them more expensive or cheaper, based on their fluctuating amounts, thereby making them more attractive to buyers and sellers using the platform.
On Uniswap, liquidity pools are based strictly on predetermined trading pairs while on Curve DAO the liquidity pools comprise multiple assets. On Curve DAO, entire liquidity pools can also be used as an asset inside another liquidity pool.
How does a trader use the liquidity pools?
Once a trader adds liquidity to a specific pool, through stablecoins or other digital assets, the user will receive a token specific to that pool. 3pool is an example of one of the most popular liquidity pools on the Curve platform.
While the platform is known to provide trading for stablecoins, it also supports mirrored assets such as renBTC and wBTC. These assets are both built on the Ethereum blockchain and track the price of Bitcoin in a typical derivatives fashion. Since the prices are close in value they can function in the same pool and be traded using the Curve DEX.
What is the Curve DAO token (CRV)?
The CRV token is the utility token and governance token of the Curve DAO platform, providing users with governance rights, an incentive structure for fee payments, as well as providing long-term rewards to liquidity providers. CRV tokens are awarded to users based on their liquidity commitment and length of ownership.
The Curve DAO token was launched alongside the Curve DAO in August 2020. The maximum supply is 3.03 billion CRV tokens, with 62% of that being distributed to liquidity providers. The rest is allocated between employees (3%), and shareholders (30%), and a small percentage is kept for community reserves (5%). Employee and shareholder allocations work off of a two-year vesting schedule.
At the time of writing, over 531 million CRV tokens are in circulation, roughly 16% of the total supply. The market cap at the time was around $365 million, positioning the Curve DAO token network in the top 20 biggest platforms in the DeFi ecosystem.
How can I buy Curve DAO tokens?
If you’d like to buy Curve DAO tokens to include in your crypto portfolio, you can do so easily through the Tap mobile app. Providing a highly secure and equally simple crypto trading platform, users can buy CRV with British Pounds or Euros, or exchange tokens for other cryptocurrencies supported on the platform such as Bitcoin or Ethereum.
Simply download the app, create an account and follow the steps to get verified through the KYC process. You will then have access to several wallets, and a much simpler crypto trading experience.
The crypto industry can feel like it has a language of its own sometimes, so we're here to clear the air on the business of tickers. Tickers were first introduced to the trading world in the 19th century to make trading stock more efficient, listing merely an abbreviation of the company and not the full name. This concept was later adopted by the crypto industry too. In this article, we provide a guide to avoiding crypto ticker confusion.
What is a crypto ticker?
Crypto tickers are abbreviated forms of a cryptocurrency used to represent the coin on centralized and decentralized exchanges. For example, BTC is used for Bitcoin and ETH for Ethereum.
Can two cryptocurrencies have the same ticker?
As both cryptocurrencies will likely be searched for and traded on the same exchange, each will need its own ticker in order to differentiate from the other. It has however been witnessed that smaller coins have adopted a more prominent cryptocurrency's ticker in order to drive interest. This is often related to scam coins and should be considered a red flag.
To simplify this guide we've broken it down into sections, covering tickers across payment focused cryptocurrencies, stablecoins, meme coins, development-focused platforms and a gaming platform.
Payment-focused cryptocurrencies
Since Bitcoin was launched in 2009, many coins have followed in its footsteps, attempting to recreate a more efficient digital money. While this isn't a bad thing, there have been a number of digital assets adopting the word "Bitcoin" into their name which has caused a considerable amount of confusion.
Here we take a look at the three most prominent payment-focused cryptocurrencies:
BTC - Bitcoin
The first and biggest cryptocurrency in existence, Bitcoin is the most widely adopted coin to this day.
LTC - Litecoin
One of the most successful forks off of the Bitcoin blockchain, Litecoin provides fast and cheap transactions.
XRP - Ripple
XRP offers one of the fastest value transactions, challenging the SWIFT payment method with its blockchain functionalities.
Stablecoins
Stablecoins were created to combat the volatility that crypto markets have become known for. These coins are pegged to fiat currencies, ensuring that their value remains the equivalent to one unit at all times. Stablecoins have gained popularity since the launch of the DeFi movement, and both these coins are in the top 5 biggest cryptocurrencies based on market cap.
USDC - USD Coin
USD Coin is pegged to the US dollar and was launched in 2018 by payment services company Circle and Coinbase.
USDT - Tether
Also pegged to the US dollar, Tether was launched by a Hong Kong-based company Tether in 2014. Tether is the first stablecoin to come into existence.
Meme Coins
Since the rise of Dogecoin, many cryptocurrencies have attempted to leverage the brand and incorporate the star Shiba Inu logo. Most of these coins have a minute market cap, so we'll focus on the two biggest ones, which are both currently positioned in the top 15 biggest cryptocurrencies based on market cap.
DOGE - Dogecoin
The original meme token, Dogecoin was created in 2013 from a hard fork off of the Litecoin blockchain. Dogecoin remains the biggest meme token to date.
SHIB - Shiba Inu
Leveraging the success of Dogecoin, Shiba Inu was launched in 2020 and provides a crypto ecosystem compared to Dogecoin's simple payment functionality.
Development-Focused Cryptocurrencies
Since the rise of Ethereum and the incredible innovation, it has provided a platform for, many other projects have launched a similar concept where developers can also create dapps. While they all share this common denominator, each project brings something unique to the table.
ETH - Ethereum
The original development-focused platform, Ethereum was launched in 2015 and is the most widely used by developers. Often susceptible to high transaction fees, many other projects have attempted to rectify this problem.
ADA - Cardano
Cardano was created by a co-founder of the Ethereum network and through rigorous academic research aims to provide a more streamlined platform on which developers can create blockchain-based applications.
DOT - Polkadot
Polkadot focuses on providing interconnectivity and interoperability between blockchains, allowing inoperable blockchains to exchange data and value.
LINK - Chainlink
Chainlink is an oracle network that allows smart contracts to connect with outside data, providing a "bridge" between blockchains and off-chain environments.
SOL - Solana
Solana is a high-performance blockchain that provides dapp and smart contract creation. Solana provides a faster and more cost-effective alternative to Ethereum.
Gaming Platform
Last but not least, we'll also cover this metaverse-focused coin which functions to assist the inner workings of the virtual reality game of the same name.
MANA - Decentraland
Launched in 2020, MANA operates as the in-house currency for players using the Decentraland platform. The coin can also be traded in the outside world on many popular exchanges.
An Informative Guide To Avoiding Crypto Ticker Confusion
We hope the guide above helps to dispel any crypto ticker confusion, particularly as you embark on your crypto investment journey. While the world waits for cryptocurrencies to become regulated, if you're looking to get in before this takes place, Tap provides a convenient, simple and secure solution to buy, sell and store cryptocurrencies.
All coins are displayed with their real-time price, allowing anyone, anywhere to obtain one of the digital currencies on offer using simply a bank transfer.