Unified Issuance Platform

Efficient Card Management for a Digital Age

fsstsprod — Mon, 08 May 2023 10:39:11 +0000

Efficient Card Management for a Digital Age fsstsprod Mon, 05/08/2023 - 16:09

Over the years, card payments have undergone significant changes, moving from the first credit card in the 1950s to the modern digital and mobile payments of today. This evolution has been driven by several key milestones. From the introduction of credit cards allowed consumers to make purchases on credit and debit cards that provided consumers with access to their bank accounts and allowed them to make purchases without cash, to magnetic stripe technology enabling faster and efficient transactions, EMV chip technology, providing greater security to now contactless payments, virtual cards, biometric cards, and more in the recent decades. The evolution of card payments has been driven by advancements in technology, changing consumer preferences, and the need for greater security and convenience. As we move forward, it is likely that we will see further innovation in the world of card payments, with new technologies and features emerging to meet the changing needs of consumers and businesses.

In such a scenario, what is needed is a dynamic, tech-driven, card management and issuance platform that enables issuers to offer greater services to its customers in the shortest possible time and with least amount of friction.

In 2023, customers have certain expectations and needs that they except their issuer banks to fulfil without the need of calling them out explicitly. Some of those expectations revolve around:

Convenience: In the digital age, customers expect issuer banks to provide them with convenient payment options. This includes contactless payments, mobile payments, and the ability to manage their payment cards through mobile apps or online portals.
Personalization: Customers expect their issuer banks to offer personalized products and services that meet their individual needs and preferences. This includes customized rewards programs, flexible payment plans, and personalized credit limits.
Transparency: Customers expect transparency from their issuer banks regarding fees, interest rates, and other charges associated with their payment cards. They will expect clear and concise communication about any changes to these terms, as well as access to their account information through mobile apps and online portals.
Security: Customers today continue to prioritize security when it comes to their payment cards. They will expect issuer banks to provide them with robust security measures, such as multi-factor authentication, tokenization, and real-time fraud monitoring, to ensure that their card transactions are safe and secure.
Responsiveness: Customers always expect their issuer banks to be responsive to their needs and concerns. They will expect prompt and efficient customer service, as well as the ability to easily dispute charges, report lost or stolen cards, and request assistance with any payment-related issues.

With the growing pace of payments, and growing demands of customers, what issuers today need is an end-to-end card management system that can deliver innovative payment experiences for its customers across the lifecycle of the cards. FSS’ Unified Issuance Platform is a solution that meets all such needs.

The FSS UIP is built on a scalable foundation that can dynamically adapt to the evolving requirements of both the bank and its customers. It can fulfil present demands while also having the capacity to accommodate future expansions in customer base and transaction volume. The FSS UIP simplifies the handling of significant issuance requests, transactions, customer onboarding, and other operations, all without requiring manual modifications to the system.

Customers today seek control. Control of their payments mode, payment channels, amount, time, etc. Providing them with dynamic card controls to manage their card payments is no more a vanity feature but a basic necessity as it provides them with a greater level of control and security over their payment.

For customers who seek a greater visibility, such a system allows them to monitor and manage their payment card transactions in real-time, providing them with the ability to block or restrict transactions that they consider suspicious or fraudulent and additionally, can customize their card usage based on their preferences and requirements. For instance, they can set spending limits, restrict usage to certain merchants or categories, and turn off their card when not in use, among other things. This helps to prevent unauthorized transactions and reduce the risk of fraud or theft.

With a changing digital landscape, there are more than enough payment options available for customers, and the customer wants to have it all without any additional hassles. Today's tech-savvy customers desire a modern, digital-first experience that is seamless, instantaneous, and accessible across all major channels. With FSS UIP, issuers can quickly and easily provision virtual cards across a variety of platforms, including third-party wallets, mobile apps, and online banking portals, in just a few minutes.

By offering the ability to carry a digital card and make payments through a range of contactless methods such as NFC and wearables, FSS UIP enhances card usage and drives adoption among modern consumers. In addition, FSS UIP provides a companion mobile application that allows customers to manage their card accounts, view transaction histories, create card controls, and even raise disputes or pay bills. This mobile-first portal enables customers to enjoy an enhanced digital experience and take full advantage of the convenience offered by digital card services.

Providing such capabilities at the click of a button to the hands of the customers ensures that issuers are able to empower their customers and ensure complete satisfaction and that is exactly what a customer expects from his or her issuer.

Issuers who seek to compete in this fast-changing payments landscape need to constantly innovate with their offerings and need a technology partner that can enable them for that. FSS UIP, with the power of 60+ light-weight APIs, gives that ability to its issuer partners. From speed, scale, security, and convenience, FSS UIP covers it all for the end customer, make it a complete solution for the banks.

To know more about FSS UIP, write to us at products@fsstech.com.

Digitalising Payments on the High Seas

fsstsprod — Wed, 30 Mar 2022 08:08:47 +0000

Digitalising Payments on the High Seas fsstsprod Wed, 03/30/2022 - 13:38

Today, shipping monies or a payment instantly to a friend or a merchant is ingrained in the daily transactional lexicon of a growing population of smart, digitally minded consumers, who like the convenience of simple, touch-and-go transactions. Literally taking payments aboard a ship, however, poses challenges. Onboarding payments on the high seas, where there is no connectivity available, is a challenge for any operator, especially when the aim is to make sure the customer’s payment experience is smooth.

FSS, in collaboration with India’s largest public sector bank, and the country’s leading cards issuer, and the Indian Navy has embarked on an ambitious journey to digitalise payments onboard. Through this partnership, FSS Unified Issuance Platform would power issuance of prepaid cards for use on naval ships. Branded NAV eCash, the cards enable defence personnel to conduct payments digitally. Currently, the cards are issued aboard India’s largest naval aircraft carrier INS Vikramaditya. With over 2000 personnel on board, INS Vikramaditya can be considered a full-fledged, mini city, with various amenities including convenience stores, vending machines, recreational facilities, bakeries and health care.

The benefits of digitalising payments are obvious. Personnel posted for a long stint aboard the carrier do not have to carry a separate card to fund spends offshore and enjoy the same anywhere, anytime digital payments experience they are accustomed to when the ship is docked. Cardholders also have greater visibility and control over spends through card statements that can be generated on-demand. For the defence establishment, overheads related to cash management and handling are significantly lowered. The INS Vikramaditya is equipped with ATM facilities onboard. By enabling digital transactions at various merchant points aboard the ship, it potentially lowers cash inventory, handling and replenishment costs.

How it Works

In many Asian countries, smart cards – prepaid rechargeable contactless payment cards – are a common phenomenon. For example, in India, consumers use the National Common Mobility Card to make offline and online electronic payments. Many multi-purse smart cards in East Asia have a wide variety of uses enabling consumers to pay for closed-loop transit systems and general purchases. The NAV eCash card is modelled on a similar concept.

NAV eCash is a dual-chip, rechargeable prepaid contactless card, with a built-in online and offline wallet capability. Cardholders can use the online wallet for transactions such as ATM withdrawals, POS transactions and ecommerce purchases at any location. The offline wallet has a maximum transaction threshold of INR 15,000 (USD 208) and supports closed-loop transactions within the INS Vikramaditya ecosystem. On the ship’s return to the port, once the network is available, the settlement files are securely routed by the central server to the FSS Unified Card Issuance Platform. On successful processing of files, the Unified Issuance Platform updates respective card account balances. The Unified Issuance Platform interfaces with FSS Smart Recon for settling and reconciling these transactions, performed at a frequency of T+1 day, once the ship arrives at the port.

The security of these transactions is a critical imperative. NAV eCash cards have a unique BIN range for easy identification and each cardholder is only allowed to have a single card at any point of time to pre-empt any misuse. Further all transactions are subject to a maximum permissible limit configured by the operator, providing the establishment complete control as well as visibility into transaction velocity and volume at a per cardholder level. All transactions are PIN protected and the system supports AES 256 encryption key for payload encryption.

Way Forward

FSS’ modern, API-based Unified Issuance Platform and Smart Recon power card issuance and transaction reconciliation for this prestigious nation-building project. As the technology service provider, FSS will work with the bank to replicate the concept at other naval ships and defence establishments. To drive great adoption, FSS is collaborating with key stakeholders to support new customer journeys that can potentially be layered on such as festive or seasonal incentives, rewards and loyalty programs and spend management.

Embedded Payments & the Rise of Virtual Cards

fsssiteadmin — Tue, 16 Nov 2021 07:03:24 +0000

Embedded Payments & the Rise of Virtual Cards fsssiteadmin Tue, 11/16/2021 - 12:33

A wide range of non-banking service providers are beginning to embed payments into their suite of offerings making them an invaluable part of an elegant, customer-first digital experience. For example, popular social sharing sites are a great example of a digital platform where "billions of intents” - the need for a home, car, travel - are broadcast by customers. In a customer's buying cycle - the trigger, discovery, and consideration - happens here. These micro-moments provide opportunities to blend payment products with customers’ life needs and improve lifetime value.

For issuers, at a time of declining interchange fees, slimming market share due to increasing adoption of real-time payment rails — the demand for broader integrated services has paved the way to remain competitive by remodelling core card products and capturing new revenue streams. Instant virtual cards can help issuers build new value ecosystems, seek new markets, and address heightened customer expectations for immersive payment experiences. And the opportunity is significant. Juniper Research forecasts that the global value of virtual card transactions will reach US$6.8 trillion in 2026, from US$1.9 trillion in 2021. Payments industry consultancy Mercator Advisory Group anticipates that virtual card use will outpace physical business credit card use by 2024.

Virtual cards essentially function in the same manner as a physical prepaid or a debit card, minus the plastic. They are, emerging as the preferred form of payment because these cards can be provisioned and activated on-demand to facilitate secure online, in-app or mobile payments. The rules that govern virtual cards can be quickly programmed, giving issuers complete flexibility to customize products aligned to specific business needs. Virtual cards, for instance, can be generated to settle a specific vendor transaction -- locked down to a specified amount, and time limit -- or as a general-purpose card. Payments outside of these parameters are simply not authorised, seamlessly protecting buyers from fraudulent transactions without impacting the user experience.

An API-first framework provides issuers the flexibility to tap into adjacent ecosystems and embed payments into an almost unlimited number of consumer and corporate applications. To attract digital-first consumers, new age banks and companies are embedding virtual cards into smart devices to provide e-commerce, mobile and point-of-sale payments. YAP Middle East, the leading digital banking platform in the MEA region, for instance, combines virtual cards with added value capabilities such as intuitive card controls, bill payments and spend tracking. Singapore’s Grab, which began as a ride-hailing service like Uber, for instance, has embedded payment services and its own wallet into its app.

Another example is the pairing of lending options with virtual card issuance capabilities. India’s largest consumer finance company is leveraging FSS Unified Issuance Platform to offer virtual cards with a BNPL option to drive revenue and cement customer loyalty. Consumers can apply for these cards online or receive instant EMI cards at checkout (online and physical point of sale) to fund purchases.

Issuers can also explore new business segments that offer higher margins such as corporates. According to Juniper Research a typical company makes more than 2,000 domestic payments annually. Workforce spend management solutions could equip procurement teams with virtual cards with built-in transaction limits and spend tracking capabilities to prevent misuse. Likewise, in a gig economy, businesses can use virtual cards to provide earned wage access to its contract workers.

For issuers, opening issuance APIs to third party apps represents a step-change in their current business models. By industrializing capabilities and offering Cards-As-a-Service, issuers can model an expansive services marketplace. This is the case with ICICI, India’s leading private bank which provisions an instant virtual card with its wallet app to enable customers access a range of services. Likewise, Emrys France which issues multi-wallet virtual cards. Customers can use the open-loop wallet, resident on the card, to transact at merchant outlets affiliated to the Emrys network or at non-affiliated stores. For purchases made within the Emrys affiliate network, customers receive points that are credited to their loyalty wallet at a defined frequency.

Issuers can also participate in third party ecosystems and embed core payment card capabilities at the optimum point of acquisition, at a lower cost and a higher conversion rate. Vopy Payments, for instance, has partnered with FSS to launch embedded financial services to serve telecom providers, social network platforms, consumer tech and other business verticals across multiple markets in Europe.

Embedded payments demand that issuers modernise card platforms to develop new services and products with speed and flexibility. FSS Unified Issuance Platform -- an API-driven, cloud capable platform - provides critical issuance infrastructure to help customers quickly launch digital products from the ground up. The platform APIs allow issuers to orchestrate a complementary services ecosystem as well as embed card payments into third party ecosystems including Google Pay and Apple Pay. Additionally, the platform supports value-added capabilities such as real-time risk decisioning and insights into cardholder spend patterns.