In a commoditized prepaid market segment, where open APIs and banking create possibilities for issuers to realize additional value, Financial Software and Systems [FSS] www.fsstech.com prepaid card management system [CMS] is enabling prepaid card issuers to orchestrate customer-facing merchant ecosystems to expand the scope of services and capture new revenue streams.
However, through FSS open API, card issuers can get exclusive merchant-branded wallets linked to a customer’s primary prepaid card account with a few clicks. Issuers can tap into popular spending categories to fuel a range of innovative consumer-centric propositions. For example, customers can create an exclusive merchant cash-back or loyalty wallet quickly after he completes the purchase.
Benefits of FSS prepaid CMS
Nevertheless, FSS prepaid card issuers can issue instant and open-loop virtual co-branded merchant wallets paired with value-added services including instant lending at the point of purchase. This helps to differentiate their card products and drive higher spend per cardholder.
The FSS prepaid CMS provides card and app-based merchant wallets linked to primary card and API-driven services framework for merchant registration and wallet creation.
It also offers instant lending at the point of purchase for prepaid cardholders. For example, a food delivery company can issue a commission wallet for home delivery associates or a meal allowance wallet in partnership with select restaurants.
Specifically, card issuers have the opportunity to offer value-added services. This includes instant access to credit to fund customer spend and drive sales. According to industry estimates, global instant loans represent a $1.2 trillion opportunity. This is expected to grow over 15 per cent year-over-year.
Overall, at affiliate merchant stores, shoppers can opt for an instant open-loop physical or virtual prepaid card. The card can be loaded with the amount needed to fund the purchase. The loan amount is for a specific purpose and issuers can define and monitors spend limits per merchant.
According to Natarajan Sathish, the Deputy Chief Product Officer, FSS, stated that enabling customer-facing ecosystems and the marketplace is the primary driver of future value creation for digital commerce in the open banking world.
“By opening the FSS prepaid CMS platform to third party merchants, we allow card issuers orchestrate an extensive digital services ecosystem and multiply opportunities for engagement and value creation.
“The combination of co-branded merchant wallets with value-added services like instant lending at checkout helps issuers to build a satisfied and loyal base of the prepaid cardholder and improve spend per card.”
Additional credit line
Sathish also informed that customers can obtain an additional line of credit on the same card based on terms pre-determined by the issuers. This will s eliminated the hassle of submitting paperwork again when they shop at a different merchant store.
Additional value comes through instant lending via prepaid cards allows issuers to have a broader relationship with the customer. Prepaid cardholders can top-up cards to pay for orders, earn and track cash-back, and access exclusive sales and offers.
Support for merchant enrolment
In a signed statement, Sathish mentioned that FSS prepaid CMS advanced API-based framework supports rapid merchant enrolment, instant virtual card and wallet creation. It also allows integration with merchant IT systems, a complete gamut of capabilities to manage the lifecycle of the card.
It has the flexibility to load, delete and amend applications, enabling the quick roll-out of customer-centric card programmes.
Supports 150 million cards
Leading prepaid processors globally have deployed the prepaid CMS and it supports 150 million cards. Headquartered in Chennai, India, FSS services leading global banks, financial institutions, processors, central regulators and governments across North America, UK, Middle East Africa and APAC and has 2,500 experts on-board.
As a leader in payments technology and transaction processing, FSS offers an integrated portfolio of software products, hosted payment services and software solutions built over 29 years’ of experience.
FSS, end-to-end payments products suite, powers retail delivery channels including ATM, PoS, internet and mobile and critical back-end functions including cards management, reconciliation, settlement, merchant management and device monitoring.