Credit and debit cards are a staple of the economy, and card issuing has become a highly effective tool for companies to grow. While capturing interchange revenue is an attractive prospect, card issuing also gives companies the opportunity to build innovative products based on card activity data.
Here are some of the more popular, and surprising, industries (and companies) using card issuing to grow their businesses and make payments even more rewarding for customers.
Fleet
Companies operating in the fleet industry address several challenges that owner-operators face, such as invoice factoring, access to affordable fuel, and expense management. The companies below are using card issuing to solve these problems in innovative and efficient ways.
Coast
Coast’s all-in-one fleet fuel card and expense management platform for fleet operators aims to eliminate fuel theft and overspending. Notable benefits include:
- Spend controls by day or driver, including purchase amounts, frequency, vehicle mileage, and type of purchases
- Powerful transaction-level reporting that shows the location of fuel purchases, the driver, the number of gallons, and fuel grade
- Ability to quickly cancel and reissue lost or stolen cards
- Accepted wherever Visa can be used
TruckSmarter
Owner-operators have a lot to keep track of, and the TruckSmarter Card aims to help truckers manage the financial aspects of their business.
The company offers a debit card connected to a user’s FDIC-insured TruckSmarter checking account. Highlights include:
- Up to 1% cash back on purchases
- Invoice factoring with a 2.5% factoring rate
- Instant access to cash as soon as invoices are approved
- Fee-free ATM withdrawals
- Discounts on fuel purchases
- Accepted wherever Visa can be used
Motive
Motive is an end-to-end transportation, logistics, and heavy-machinery management solution, using AI and other advanced technologies to increase efficiency and safety. One of its products is the Motive Card, a Mastercard product that simplifies fleet expense management. The Motive Card connects fleet and spend management in a comprehensive dashboard which allows customers to reduce fraud and save money through:
- Mismatch detection when fuel purchases don't align with the vehicle location
- Savings comparisons on gas stations in the area
- AI-enhanced reporting that spots spending trends and fuel savings opportunities
Personal Finance
With consumers increasingly using digital channels to pay, tracking finances through an app is becoming more convenient. As personal finance user counts grow, these companies are exploring card products that address several user jobs to be done, such as building credit and granting fast access to funds and investment opportunities.
An interesting note is that since Intuit decided to discontinue the Mint personal finance app, many of the budgeting and personal finance platforms are exploding with growth, funding, and new opportunities. Personal finance will be an important industry to watch in the coming months, as they have more fuel for innovation.
Privacy.com
Privacy.com, a sister company of Lithic, was one of the first companies to offer a solution to protect consumers from online card fraud. The company helps users create virtual cards to pay for expenses.
Given the platform’s popularity, Privacy.com is slated to expand into financial empowerment tools, like budget and spending dashboards, to assist shoppers beyond just card control.
Using Privacy.com, customers can:
- Shop privately and securely online using automatically generated, unique payment cards
- Easily manage and cancel subscription services
- Set limits to control their spending and pause, unpause, and close cards at any time
While some personal finance and budgeting apps have added card issuing to their stack to enhance their users’ spending flow, Privacy.com is adding budgeting to an existing card product.
Qube Money
Qube offers consumers a digital cash envelope banking and budgeting system featuring a debit card with preset spending limits. Users can use this system to track every dollar spent and create spending goals.
Here’s how it works:
- Consumers add money to their Qube account
- Every dollar is "given a job" and can't be spent until activated
- Cardholders approve spending from the category by tapping on that category’s Qube, which unlocks the card for purchases
Zeta
To combine bank accounts or not? That's the question many couples are asking today, and Zeta seeks to answer it.
With a blend of budgeting apps, educational articles, and a bank account with a debit card, Zeta simplifies money management for families. Ways the card and accompanying tools stand out include:
- Couples combine their finances and track spending in one app
- Transparent reporting helps everyone see where money is going
- When families grow or change, it’s easy to add kids and household members or reprioritize goals
Expense Management
Businesses need better ways to track expenses and approvals. Here's how these companies are using card issuing to simplify expense management and give companies more control over approvals and budget limit enforcement.
Parker
Parker is changing how e-commerce companies handle accounts payable (AP) and working capital management with its card. Using performance-based underwriting, Parker leverages user data to grant appropriate credit limits and the following benefits:
- Credit periods up to 90 days to reduce working capital stress
- Integration with a robust expense management and analytics platform
- One-click bill payments to simplify AP processes
Ramp
Ramp is a spend management control platform that serves companies of all sizes. The company helps its users manage corporate expenses through virtual and physical cards. Ramp cards play an integral role in helping companies control their spending in the following ways:
- Spending limits based on merchant categories
- Customized expense approval workflows for each card issued
- Flagging duplicate and unused subscriptions
Ramp also offers 1.5% cash back to small businesses on all purchases.
Earned Wage Access and Cash Advances
Companies are using fast paycheck access to attract and retain talent. Dubbed earned wage access, this feature removes the need for employees to seek high-interest payday loans.
The following companies are tapping into this fast-growing sector, and card issuing is playing a pivotal role in their growth.
Dave
The Dave banking app bundles many features that have traditionally been unavailable to those without access to a bank account. It offers a spending account with a linked debit card, the ability to apply to additional income opportunities like side hustles, and an instant cash advance feature.
Additional benefits include:
- Up to 4% APY on savings balances
- Cash back on select debit card purchases
- Claim paycheck amounts two days early when using direct deposit
DailyPay
DailyPay partners with employers to give employees access to their earnings anytime before their regular payout day. Friday by DailyPay, a prepaid Visa card, gives users instant access to their paycheck once they transfer money to their Friday card.
Other details include:
- Any remaining money that isn’t requested early gets paid out with regular payroll on the Friday card
- Employees get true flexibility in how and when they get paid
- Works for base pay as well as earned tips
Payactiv
The Payactiv card helps employees access their money as soon as they earn it. Users can access 50% of their net earnings every day they work. They can move funds from Payactiv to their bank accounts, debit cards, or payroll cards.
Other features include:
- Users can pick up earned wages as cash at any Walmart location
- Schedule regular, more frequent payouts to the Payactiv card that equal up to 90% of earned wages
- Users can access free money transfers if their employers have signed up for real-time earned wage access transfers
The Gig Economy
The gig economy has completely transformed the workforce, with around 36% of surveyed U.S. adults in 2022 working as freelancers. Gig workers need innovative financial solutions, and these companies use card-issuing technology to help them.
Uber
Uber is simplifying the payout process for its over five million drivers with the Uber Pro Card. This Mastercard debit card provides drivers a convenient way to accept and cash out earnings and pay for common driving expenses.
A few notable perks include:
- Earnings of up to 10% cash back on gasoline, with no temporary card holds at most gas stations
- Cashback on EV charging, auto maintenance and repairs, and dining
- Automated payouts, within seconds, for more trips
- Ability for qualified drivers to borrow up to $150 with Backup Balance
Fiverr
The Fiverr revenue card gives gig workers on the Fiverr marketplace another place to cash out their project payments. Existing cardholders can:
- Select the card as the preferred method of payout
- Load money from approved gigs onto their card for instant cash access
- Use the card anywhere Mastercard debit cards are accepted
Fiverr has currently disabled the ability for new users to apply for a card, but existing cardholders continue to reap its benefits.
Toptal
The Toptal gig marketplace connects developers, designers, and project managers worldwide with clients. However, processing and sending international payments can be complicated.
The Toptal prepaid Visa debit card aims to reduce obstacles to quick payment by:
- Offering professionals in international locations a convenient way to get paid
- Enabling gig workers to withdraw funds as cash irrespective of their location
- Making funds available faster than checks and other traditional payment methods
Which Industries Will Adopt Card Issuing Next?
Card issuing has become one of the best ways for companies to grow revenue and build innovative products by leveraging user data. As our list above shows, non-fintech vertical SaaS companies like TruckSmarter are increasingly using cards to increase customer value.
As card-issuing technology continues to improve, we will undoubtedly see more companies exploring unique ways of empowering their customers with innovative solutions.
Curious to learn how you can leverage cards to grow your business? Explore what an issuer processor can do for you, and get in touch with our payments experts.