Whether physical or digital, offering personalized, on-demand payment options to customers drives satisfaction, and provides a quick on-ramp for generating interchange revenue for issuers. However, the definition of what constitutes an “issuer” of a card is growing beyond the traditional bank or credit union. Businesses that specialize in retail financing, international currency exchange, tax prep, or check cashing are ripe to become issuers of physical debit cards with Instant Issuance.
Why is Instant Issuance perfect for these sectors? First, for businesses focused on expanding or accelerating access to funding for their customers, quickly putting secure payment cards in the hands of their clients is a natural fit. Imagine this scenario: a tax preparation or financing service has successfully onboarded a customer. That new customer is eager to put new funding to use, so they apply for a payment card just to find out that it will arrive by mail in 7-10 days. Or, worse, the card number is shared with the client to manually enter at a point-of-sale which is a security risk. Instant issuance of physical cards combats both of those issues, giving new customers what they want: a more immediate and more secure access to funds and a stronger sense of loyalty to that service provider.
Secondly, for shoppers in the U.S. market, physical payment cards are dominant, and growing. Research from eMarketer forecasts that total payment card transaction value will grow 4.3% in 2025, as cards continue to gain share from cash and checks. Consumers highly value having access to a card in hand, especially for in-store point of sale purchases. Especially as many retailers are limiting the use of cash at point-of-sale.
Third, community-based retail locations that already support face-to-face interactions with customers can benefit from the de-centralized structure of in-branch card printing.
Instant Issuance Beyond Banks
Instant issuance, originally developed for banks and credit unions, refers to the ability to obtain a fully functional card immediately upon request. With in-branch instant issuance, a physical card is printed, encoded, activated, and presented directly to the customer, using a desktop card printer. However, unlike with banks or credit unions where cards are tied to a debit account, for non-banks, cards are funded according to the contractual agreement with the customer. Cards are then issued and branded with the major payment brands for general purchases.
As digital and mobile wallets have become more common, other services have emerged to help compete by provisioning cards digitally. Both physical and digital issuance options drive immediate interchange and positive customer engagement, however, be wary of so-called “instant issuance” programs that do not offer the capability of printing a physical card on site. Digital-only solutions without a hardware component only deliver half of the value equation, limiting point-of-sale use, possibly resulting in frustrated cardholders.
Why SaaS-Based Instant Issuance is Ideal for Retail Financial Services
Businesses serving fast-moving consumer markets often can’t afford the complexity or upfront cost of building a custom issuance platform. That’s where Software as a Service (SaaS) solutions—like CPI’s Card@Once®—come in. (Read more about the decision between software for purchase (SFP) and SaaS instant-issuance here).
Key benefits to a SaaS-based solution are:
1
Faster time to deployment
SaaS providers offer turnkey solutions that can significantly reduce implementation time. This means you may be able to begin recouping your investment and issuing cards more quickly.
2
Reduced costs in the
short term
SaaS programs can require less upfront capital investment in equipment, because the issuer is not buying and programming a private server.
3
Reduced costs in the long term
SaaS programs typically utilize a pay-as-you-go subscription model, making costs more predictable and manageable. For instance, CPI offers a single, standard pricing model for our instant issuance clients.
4
Easy integration and ongoing maintenance
SaaS instant issuance programs like CPI’s Card@Once offer APIs and pre-built integrations with leading core banking systems and processors. System updates, server maintenance, and troubleshooting are handled by CPI instead of by the issuer.
5
Designed to grow with your program
Leading SaaS programs are designed to be scalable, so you can start small (even with a single location), and expand availability as your issuance volume and demand grows.
What CPI’s Card@Once® Solution Offers Your Business
The potential advantages of instant issuance are clear, but new card issuers may need some guidance. Here are some of the specifics you should be looking for.
- Security and compliance: Your partner should be fully certified and compliant with the latest PCI-DSS data security requirements. They should ensure end-to-end cardholder data encryption, secure card stock management, and printer access controls.
- Card personalization: Just because you’re offering cardholders instant access to their preferred payment method doesn’t mean you have to skimp on design and features. Choose a vendor that offers a variety of in-branch card options including EMV chips, contactless functionality, and custom graphics aligned with your institution’s branding.
- Hardware security module (HSM): An HSM is a specialized computer server used to manage the all-important cryptographic keys used in the personalization of payment cards. Make sure Card@Once HSMs are fully compliant with all PCI-DSS, PCI PIN, and Visa/Mastercard/EMVCo security requirements.
- IT support and service: Top vendors offer round-the-clock software support, along with reliable printer hardware. Ask your vendor about the location of support teams and whether they are available 24/7.
- Vendor reputation and experience: Make sure to partner with a vendor with a proven track record in financial services. Check existing client references and verify they have all necessary industry certifications.
Getting started on your instant issuance journey
If you’re ready to offer your customers the convenience of in-branch instant issuance, CPI is here to help you on your journey. Contact CPI to learn more.
About the author
Carole Turner
Senior Product Manager
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