CaaS (Cards-as-a-Service): The Future of Digital Payments

Nowadays, convenience and ease of use are key factors driving the evolution of payment solutions. One such innovative concept in the digital payments industry is Cards-as-a-Service (CaaS). With the increasing demand for digital payment solutions and the rise of e-commerce, businesses are looking for more efficient ways to manage their card programmes.

What is CaaS (Cards-as-a-Service)?
This technology offers businesses the flexibility to customise and manage their card programs in a seamless and efficient manner. CaaS adoption enables companies to sidestep the complexities of setting up their card systems and instead leverage the CaaS provider’s expertise and already established systems.

How CaaS works?
CaaS providers use APIs and white-label solutions to enable businesses to issue and manage these cards with ease, allowing them effortless participation in the system.

CaaS providers manage various aspects of card processing, including card processing, personalisation, transaction processing, fraud prevention, and compliance. They often enhance their offerings with features such as virtual cards, mobile wallet integration, and analytics, helping businesses deliver an integrated and customised card experience to their customers.

Growth of the Global CaaS Market
The global market for Cards-as-a-Service is projected to experience significant growth in the coming years. According to market research reports, the CaaS market is expected to grow at a compound annual growth rate (CAGR) of over 20% by 2025. Credit card usage in Europe has increased steadily from 2019 to today, according to Statista [1]. This growth is largely due to a significant increase in e-commerce throughout the continent, further amplified by health regulations introduced in 2020 during the global health crisis.

A new study from Juniper Research [2], the foremost experts in fintech and payments markets, has found that the total volume of virtual card transactions will reach 175 billion by 2028, rising from 36 billion in 2023. Another report from Juniper Research [3] shows that the global payment card market will grow by 39% between 2024 and 2029. The cards market is on the rise, and there’s no sign of it slowing down.

What are the benefits of Cards-as-a-Service for your business?
CaaS solutions provide APIs and SDKs that integrate seamlessly with existing business processes, enabling faster development and go-to-market. They perform tasks such as card activation, resignation, and contact tracking, reducing manual processes, minimising errors, increasing operational efficiency, and allowing businesses to focus more on core functions.

By using their own cards, firms can use additional revenue generated through currency swaps to gain cash from customer transactions. CaaS gives businesses complete control over card issuance, allowing them to tailor card policies to suit users’ specific needs. This could include establishing transaction restrictions or limiting the use of cards, which increases security and aligns with consumer preferences.

Additionally, insights from consumer spending data can help companies optimise their supply chains. CaaS enables businesses to create extensive card systems without critical business infrastructure, allowing them to focus on their core competencies.

Who Can Leverage CaaS?
Card-as-a-Service (CaaS) is ideal for businesses looking to offer card services but lacking the required resources or expertise. CaaS is widely adopted across various sectors, including: Financial Services, Insurance, Healthcare, E-commerce and Retail.

How to Select the Right CaaS Provider
When choosing a Cards-as-a-Service provider, businesses should consider factors such as reliability, security, scalability, and customer support. Amaiz is an advanced CaaS provider that offers a comprehensive solution for businesses looking to launch their card programmes. With Amaiz, businesses can access a range of customisable features, robust security measures, and seamless integration options to meet their specific needs.

Interested in starting your own card programme? Learn more about Amaiz's CaaS https://amaiz.com/saas and contact us for a special offer.

1. Statista report ‘Digital Payment Methods in Europe’ by Raynor de Best - 2022-21-06 - [https://www.statista.com/topics/3946/digital-payment-methods-in-europe/#topicOverview]
2. Juniper Research report ‘Credit Cards Strategies: Innovation Analysis, Digital Transformation & Market Forecasts 2023-2027’ by Damla Sat & Nick Maynard - 2023-31-01 - [https://www.juniperresearch.com/research/fintech-payments/core-payments/credit-card-strategies-research-report/]
3. Juniper Research report ‘Global Payment Card Technologies Market: 2024-2029’ by Nick Maynard - 2024-12-08 [https://www.juniperresearch.com/research/fintech-payments/core-payments/payment-card-technologies-market-research-report/]


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