Research has shown that over 75% of payments worldwide are made digitally. When it comes to card issuing in South Africa, every financial business must understand how these strategies can impact their revenue, growth, and esteem. 

Let’s explore the implementation of card issuance in South Africa, with pros and cons highlighted. We’ll also include tips at the end to help you choose the right provider for your business. 

What is Card Issuing?

Card issuing, or issuing banks, are institutions or organizations that offer card payment capabilities, such as credit or debit cards, to respective companies or individuals.

These card issuers act as an intermediary between credit card companies and the cardholders. Examples of these credit card companies are Visa, Mastercard, American Express, etc. 

These processes enable cardholders to be able to make purchases, access funds, and manage their finances seamlessly. One of the best card-issuing providers in South Africa is Miden. 

Miden provides card-issuing capabilities to South African Fintech founders, product managers, CTOs, and more. 

How Card Issuance Benefits FinTech Industries in South Africa

1. Heightened Financial Inclusion and Access: 

According to the World Bank, there are over 3.5 million adults who remain excluded from financial platforms in South Africa. In the same light, as supported by the University of Stellenbosch Business School research, over 11 million adults are disconnected from relaible credit saving optionsor formal banking systems in South Africa. 

To this end, enabling Fintech companies to issue virtual cards to the unbanked individuals in South Africa allows the end users to shop online, pay for goods, and manage their finances without the need for a traditional banking relationship. 

For example, Miden offers card-issuing capabilities to financial institutions across South Africa. This feature increases the adoption of digital banking solutions in the country, thereby helping the unbanked become financially knowledgeable. 

2. Enhanced Expense Management for SMEs:

In the fintech industry, real-time spending visibility and control are important for corporate/formal settings. As a team, the ability to issue cards with a definite budget, instant freeze or unfreeze capacity, and category restrictions will not only increase transparency but also team accountability. To add to this, Miden offers these features with an option of customizing these cards to suit the company’s theme, culture, or values. 

3. Improved Lending and Credit Disbursement:

To add, card issuing solutions assist money lenders and BNPL providers in issuing cards to disburse loans or credit lines. These help them track fund disbursement, return delivery dates, creditworthiness, spending habits, and many more. 

Miden provides highly optimised card-issuing services to Fintech lending institutions in and beyond South Africa. 

Key Use Cases for Card Issuing In South Africa

  • Neobanking & Digital Wallets: These are more or less digital banking institutions that offer virtual or physical cards linked to mobile wallets for everyday spending, ATM withdrawals, and online banking. 
  • Gig Worker & Freelancer Payments: These are freelancers, creators, and workers who need a fast and direct payment method that allows them to get paid instantly without needing a bank account. 
  • Corporate Expense Management: These are SMEs, remote teams, and the finance department that require customizable team cards, merchant category restrictions, and real-time reporting for better expense tracking.
  • Travel Agencies: These are for tourists, international students, business travelers, and more that need a multi-currency cards and wallets with better FX rates and spend control to streamline payment transactions across the border. 

Why Fintechs Choose Miden for Card Issuing in South Africa

The South African market is gradually adopting digital banking solutions, even in rural areas. However, to be in control of the users’ finances, it’s important to stay in tune with their needs as they arise. 

That’s where Miden comes in.

This leading card-issuing company has quickly become a top choice for financial and non-financial organisations in South Africa, and here’s why:

  • Compliant with Regulatory Rules: Miden is a clear example of ‘local expertise meets global-standard infrastructure’. They are fully compliant with South Africa’s laws and regulations. In addition, they are PCI-DSS compliant and NDPR Certified. 
  • Flexible API Integration: Miden is structured to fit into every organization's needs, from payment processing to wallet management, card creation, and more. 
  • Speedy Processing: Speed matters, especially in the Fintech industry. Miden helps companies move from prototype to production quickly, without the drag of banking bureaucracy. Teams can test, iterate, and launch card products in weeks, not years.
  • Full Control Management: Unlike other card-issuing providers, Miden offers real-time control and tracking solutions over the created cards. They offer the capability to set spending limits, track expenses in real time, increase anti-fraud protection, and more.

Final Thoughts on Card Issuing in South Africa

In this guide, we’ve explored the concepts of card issuing in South Africa, what it entails, its effect on Fintech institutions, and more.

We’ve also included tips to help you choose the right provider for obtaining a card-issuing license. 

Highlighting Miden as one of the best card issuing providers in South Africa showcases the strength, benefits, and importance of this issuing bank for every fintech and non-fintech organisation. They equally offer seamless capabilities to acquire virtual USD card issuing for African businesses. 

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Fintech