Until recently, banking institutions monopolised the issue of payment cards. However, individual card-issuing solutions are already rapidly increasing in volume. According to experts’ rough calculations, their market share will almost double in the next five years. Despite the good pace of popularisation of such solutions, companies still need to figure out whether they can provide sufficient security for confidential information and corporate funds. In this article, you will learn about the challenges card-issuing platforms face regarding cybersecurity and how to combat them.
What is a card-issuing platform?
To launch your own card programme, you can either go to a bank or use a dedicated card-issuing solution. This multifunctional platform allows you to issue cards independently, without the bank’s mediation, manage your expenses, and adjust your budget.
You can develop the card issuance platform or use a White Label solution. In either case, the client is independent of the whims of the banking organisation and can issue an unlimited number of cards of any type to achieve their business goals.
Who should be responsible for security?
If you decide to develop your card issuance solution, be prepared to be responsible for the following types of issues:
- financial;
- organisational;
- legal;
- security issues.
You must find qualified employees to develop the software and create the infrastructure from scratch. This is a rather long, labour-intensive, and costly process.
Using solutions developed under the White Label model to launch your own card project is much easier and more profitable. These are ready-made platforms that can be used on condition that a certain subscription fee is paid. The provider who has developed such a solution is responsible for all organisational, financial and legal issues. It ensures the security of all cardholder data and transactions. Such platforms have a lot of advantages for the user:
- Allow to launch a card program in the shortest possible time;
- Do not require costs for infrastructure construction, modernisation and maintenance;
- Can be customised to meet the needs of each user;
- Generate additional income when leased rather than used to meet personal needs;
- Increase brand recognition through customised card design with corporate branding.
If you want to develop your card issuance solution, you will also be responsible for security and countering cyber risks. A White Label solution will save you from such a necessity, as their provider handles all security-related issues.
Top cyber risks in the world of finance
Digital finance can be affected by the following cyber dangers:
- Identity theft. Card issuing platforms store sensitive information about cardholders and corporate finances. The theft of this information leads to financial losses;
- Phishing and hacking attacks. Fraudsters fraudulently or with the help of malware take over credentials, which also causes huge financial losses;
- Please comply with the terms and conditions of payment systems. If the software does not operate by payment system regulations or violates applicable laws, it can result in heavy fines and loss of reputation;
- Technical imperfection. Without constant updating and upgrading of the technical base, solutions for card issuance will quickly become available for unauthorised access by intruders.
The human factor should not be discounted, as users’ lack of cybersecurity education can also become a “loophole” for cybercriminals.
Tools to prevent cybercrime
To avoid worrying about the safety of confidential information and funds in corporate accounts, you should choose card issuance solutions that utilise the most advanced security methods and tools. One such solution is the Wallester platform. It is capable of preventing any cyberattacks through the use of the following tools:
- Multi-level data encryption;
- Controlled access to financial information;
- Fraud monitoring to prevent fraudulent card transactions;
- KYC/AML compliance.
Fraudsters are constantly improving their methods of scamming money and taking over other people’s data. Wallester understands this, so it constantly upgrades the platform and improves its reliability.
Conclusion
A proprietary card-issuing solution allows businesses to gain a competitive advantage. Using Wallester’s White Label solution, you can quickly issue an unlimited number of cards for any purpose and manage your card programme. At the same time, the user does not need to create the infrastructure, modernise it and maintain it himself. Wallester handles all issues, including the security of transactions and personal data.
