Checkout.com launches virtual and physical card issuance

Image credit: Checkout.com

Fintech startup Checkout.com is better known for its payment processing product. But the company is launching a new product today as Checkout.com customers can now create payment cards for their own customers.

The company has been testing Checkout.com issuance for some time since there are already millions of cards created with the new service. Checkout.com supports physical cards as well as virtual cards that can be used multiple times or automatically deactivated after the first payment.

Jow, for example, has used it. The company offers a meal planning app that creates a list of ingredients you can buy. And Jow has used Checkout.com Issuing to create single-use virtual cards that can be used to buy groceries at a partner company.

Checkout.com says its issuance product is less reliant on integrations with third-party companies compared to other fintech companies. That should give more flexibility when it comes to generating new cards on the fly.

That means Checkout.com cards can work hand-in-hand with other parts of the product. For example, customers can easily create custom rules that automate fund movements so that there is the right amount of cash behind a specific card.

Issuance also represents a business opportunity for fintech companies. When someone pays by card, the card transaction fees are shared between the merchant’s bank, the card scheme (Visa or Mastercard for example) and the card issuer (Checkout.com in that case). Checkout.com will share its share of the brokerage fees with its own customers.

“Card issuing and embedded finance have exploded in recent years as sectors such as online travel, marketplaces and digital banking use payments to stay at the heart of customers’ financial lives. Checkout.com Issuing is built on open, flexible APIs that mean businesses can create purpose-built card programs, improve cash flow and unlock new revenue opportunities, company CPO Meron Colbeci said in a statement.

So who should use Checkout.com issuance? On-demand companies like DoorDash or Uber Eats rely on cards issued by Marqeta and others. This way, their partners can buy groceries or food without using their own personal funds.

Many industries also use card issuance to make instant payments across a wide variety of merchants. As long as the seller accepts card payments, the card can act as a payment interface. Examples include travel agencies, insurance companies, expense management platforms and more.