CashFlows said this week (July 3) that it has launched a product designed to make it easier for smaller firms to issue prepaid cards and do payment processing through such major networks as Visa and Mastercard.
CashFlows said it will provide a bank identification number (BIN) sponsorship service by working with Open Payments Cloud. According to a press release, that will enable “new payment innovators to issue prepaid cards and process payments through major global payment schemes like Visa and Mastercard.” The offering targets new and smaller card programs whose low card volumes create barriers to entry, the company said.
The Open Payments Cloud, or OPC, “enables developers, entrepreneurs and new Program Managers to bring new payment programs to life by enabling them to connect with the FinTech services they need, such as BIN sponsorship, processing and KYC (Know Your Customer) through a single platform,” CashFlows said.
CashFlows announced this offering amid a time of significant prepaid growth. Citing Mastercard research, it said that prepaid will top $500 billion in global annual sales by 2020, with $131 billion of that coming from Europe.
“Growth is strongest in Europe where prepaid is increasing at 18 percent year over year compared to 5 percent to 7 percent for consumer credit and debit,” CashFlows said.
“OPC is addressing a real need in the market. It is continuing the trend of innovation in prepaid, enabling smaller programs that previously wouldn’t have got off the ground due to economies of scale to launch,” said Jonathan Bennett, the chief commercial officer of CashFlows. “CashFlows is pleased to be a key partner of OPC and look forward to a highly productive working relationship.”