Deep Dive: Launching a Card Programme

Sam Boboev
4 min readJan 26, 2025

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In this Deep Dive, we unpack the world of launching a card programme — from the evolution of payment cards into a trillion-dollar industry

TL;DR:

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.

Cards Key Milestones

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.

Types of 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.

Prepaid cards

(Including gift cards and general purpose prepaid cards)

A single or multi-use payment card with money loaded onto it. Used like a debit card to buy things or, where applicable, withdraw cash up to a fixed amount.

Key characteristics

  • Mainly used for disbursements, welfare payments, travel money, and gift cards.
  • Often a lower barrier is set to identity verification with lower, Know Your Customer (KYC) requirements. KYC is about making sure you can verify your customer’s identity, suitability, and risks of doing business with them. (Due to the reduced risk associated.)
  • Flexible — you don’t need a bank account to be directly linked to the card, but you can use it to make standing orders and other recurring payments and pay a regular salary into it.
  • Popular with fintechs as a quick route to market, plus prepaid flexibility has evolved since the very early pays of this card type.
  • As value is pre-loaded, prepaid is sometimes considered lower risk than debit for the issuer.
  • If not part of a major card network (scheme), coverage, and therefore card acceptance, may be limited.

Real-world example

A £100 rebate card is offered by a phone network to consumers purchasing the latest smartphone. The card is loaded in real-time when the cardholder buys a phone, and is no longer usable once they have spent their £100 value.

Credits: This article was originally authored by the Marqeta’s team and published on their website.

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Sam Boboev
Sam Boboev

Written by Sam Boboev

I am a fintech enthusiast and product leader passionate about crafting simple solutions for complex problems. Subscribe https://www.fintechwrapup.com/

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