In this Deep Dive, we unpack the world of launching a card programme—from the evolution of payment cards into a trillion-dollar industry to the nuts and bolts of building, scaling, and monetizing your offering based on Marqeta’s experience. We break down the differences between prepaid, debit, and credit cards, explore the four-party model that powers payments globally, and outline key components like licensing (network vs. regulatory), payment processors, and compliance essentials. We also cover cost considerations, from card production to fraud monitoring, and revenue strategies like interchange, cross-selling, and network incentives. Thinking of scaling internationally? We highlight what to watch for, including regional nuances and choosing the right partners. Whether you’re starting out or looking to optimize, this guide gives you the framework to build and grow a successful card programme.Let me know what you think about this week’s newsletter, and connect with 10,000+ other fintech enthusiasts, on Slack at www.thisweekinfintech.com/community and in WhatsApp here (Americas & Europe) and here (Asia & Africa).Before we dive deeper into the card programme world, you’ll need some useful context to the card and payments landscape. For example, how has the card ecosystem evolved into the trillion dollar industry it is today? And, just as important, what trends will shape the card ecosystem of tomorrow?When you think about the simplicity, ease and convenience of payment cards , it’s a wonder cash has lasted this long. Now throw in technological advances, innovations from the fintech world, changing shopping habits, and a pandemic, and the future of cash is looking ever bleaker. The truth is, using physical currency to pay for goods and services may become obsolete.Now, before we dive into what the future might hold for card payments, let’s look at some notable moments in the evolution of modern-day cards.On paper, prepaid, debit and credit card propositions can look strikingly similar as almost all of them use some form of authorisation technology to streamline how a customer accesses funds on a card. In fact, the use cases and characteristics of these similar looking cards are actually a lot more nuanced than you think.It’s also worth noting that different card networks OR schemes (the central payment networks linked to different types of cards e.g. Visa and Mastercard) have specific product requirements for each type of card. Your card proposition will need to take these requirements into account. Plus, these two card networks each have more nuances depending on whether your proposition is for consumer or commercial use. As technology has evolved, the lines are blurring between product boundaries with a prepaid and debit card often indistinguishable for the cardholder, as the user experience is often similar.A single or multi-use payment card with money loaded onto it. Used like a debit card to buy things or, where applicable,
