Why financial and non-financial technology companies should add cards to their offerings

Adding a card program can transform your business. By focusing on speed to market, customer-focused rewards, and choosing the right partner, financial and non-financial technology companies can grow their offerings and gain a competitive edge in today’s fast-paced market.      

To learn more, we sat down with Steve Pontius, Executive Vice President, Business Development at Episode Six (E6). Steve has over 18 years of experience and has held various leadership positions, including serving as the Executive Vice President & Regional General Manager, North America at Temenos, a banking software company that provides enterprise software solutions for banks and financial technology organizations, prior to his role at E6. n In this discussion, Steve explores why adding cards is a smart move and what to consider when adding cards to your offering.

Who should be thinking about issuing cards?

If you’re a financial or non-financial technology company and haven’t thought about offering your own branded debit or credit card yet, you’re leaving money on the table. The card-issuing game isn’t just for banks anymore. It’s for any company with an engaged customer base, a slick app, or a loyalty program. Let’s break it down: 

• Neobanks & Digital Lenders: If you’re in the digital banking space and your customers already trust you with their money, why not add debit/credit cards into the mix? Cards are a no-brainer extension of what you’re already doing. 

• B2B2X Providers: Are you already proving financial infrastructure or BaaS? You can introduce a Card-as-a-Service offering to enable your clients to offer their own branded cards to their users.
• Financial Management Solutions: If you’re helping companies and contractors manage their business accounts and expenses, you’re in a fantastic position to offer cards to provide an integrated offering streamlining financial management. 

• Payment & Wallet Providers: Are your users keeping money in your wallet? Slap your logo on a card and let them start swiping—those tiny fees (more on that later) will stack up fast.
• E-commerce Players & Marketplaces: Imagine the kind of loyalty and extra revenue you can create by offering a branded card that gives customers perks every time they shop on your platform.
• Gig Economy Platforms: If you’re serving freelancers or the gig workforce, offering fast access to earnings via a debit card will make you the hero of the day.  
• Retailers & Brands with Hardcore Fans: You’ve got brand lovers who’ll buy anything with your name on it. Why not give them a credit card with sweet rewards and discounts they can’t resist? 

What to consider when adding cards to your offerings

If you are thinking about expanding your offerings with credit cards, several key factors need to be at the forefront of your decision-making process. Speed to market and the ability to cut through red tape is essential to staying competitive in this rapidly evolving space.  

You can start by asking the following questions:

Is the card program central to your business?  

• How much of your revenue and customer engagement will depend on this card program?
• Will it be a core driver of growth, or just a side offering?      

How configurable is your system?  

• Can you create custom rewards programs?  
• Can you set different values for points or offer various redemption options?      

What are your customers looking for?  

• For individual consumers: cash-back rewards, travel points, or flexible redemption options.  
• For business customers: expense tracking, cash back on corporate purchases, and custom rewards that match their business needs. 
  
  

Why adding cards is a smart move

Now that you know what to consider, let’s explore how adding credit cards to your offering can create significant benefits for your business, including increased revenue, engagement and customer loyalty. 

Drive Revenue and Customer Engagement  

Cross-selling opportunities: If your customers are already using your banking services, adding a credit card program allows you to offer a one-stop solution. This strengthens customer loyalty and increases the likelihood that they will engage with more of your services.      

Attract new customers: Launching a card program can also bring in new customers, especially businesses looking for a tailored financial solution that includes credit cards. 

Build customer loyalty and flexibility

Flexible, customizable rewards programs can help you differentiate your card from competitors’ offerings. Customers value the ability to redeem points for a variety of rewards, whether they’re applied to travel, merchandise, or cash back.      

Modern technology platforms enable you to tweak and update card offerings based on customer feedback, which means you can stay relevant in the marketplace and better serve current and future customers.

Reduce dependency on legacy systems

Many established banks are stuck with legacy technology that limits their ability to innovate and offer the cutting-edge products their customers want. Financial technology companies have the chance to leapfrog competitors by using modern, agile platforms.      

With the right partner and technology, you won’t need to rely heavily on third-party service providers, meaning fewer hidden costs and more control over your business. 

How to successfully launch a card program

So, you’ve decided that adding a credit card to your offerings is a good move. But how do you go about making it happen? You’ll need the right tech, the right systems in place, and a handle on the full scope of a card program.

Find the right technology partner

Prioritize flexibility and speed to market: You need a technology partner that can help you launch quickly and adapt to the evolving needs of your business. Modern platforms allow you to manage your program with minimal third-party intervention.

Take control: Make sure the platform allows you to design, launch, and manage your card programs on your terms. You should be able to push products to market without unnecessary delays. 

Account for key operational factors 

Program management: Whether in-house or outsourced, you’ll need a solid system to manage your card program.

Fraud prevention and transaction monitoring: Security is a top concern. Make sure your technology partner offers built-in tools for transaction monitoring and fraud prevention.   Customer support: It’s crucial to have a system in place to address customer concerns, such as a reliable call center for cardholders. 

Be aware of the full scope

Entering the credit card space is more than just putting up a card offering on your website. You’ll need to:

• Handle legal and compliance issues. 

• Ensure a smooth process for underwriting and issuing cards. 

• Consider how much of the transaction fees you'll take as the sponsor for the card program.
  

Why Episode Six?

At Episode Six (E6), we specialize in helping financial and non-financial technology companies expand into the card space. We offer the modern technology and support you need to:

• Launch quickly and efficiently, without being bogged down by legacy systems.
• Customize your offering, whether you’re targeting consumers with cash back rewards or businesses with corporate expense tracking.
• Take control of your program from day one, with minimal reliance on third-party service providers.