Edgars Lasmanis, Walletto Owner: What Are Co-Branded Cards?

Edgars Lasmanis, Walletto owner, has a wealth of experience of the e-commerce and digital payments sectors. This article will look at co-branded payment cards and how they can be used to boost retailer revenues.

Co-branded cards are payment cards issued by a debit or pre-paid card issuer or network working in partnership with a particular retailer of consumer goods or services. Often bearing the logo of both the retailer and payment card company, co-branded cards enable users to earn points, merchandise discounts or other types of rewards when used with a sponsoring merchant. In addition, they can also be used anywhere that accepts cards from the card network.

Co-branded payment cards are sponsored by two parties. One is the bank or card network, for example Visa, MasterCard, American Express or Discover. The other sponsor is the retailer, for example an airline, department store or other retailer. Co-branded cards can be an important element of a retailer’s business, attracting consumers who would not be interested in an ordinary store payment card. They are also used by non-profit organisations and other types of institutions and affinity groups.

Capable of being used anywhere that accepts the issuer’s cards, co-branded cards work like any normal payment card. However, they often feature special images, providing cashback opportunities or special merchandise discounts for particular types of purchases.

Co-branded card relationships are structured in a variety of different ways, but essentially, to issue a co-branded card a financial institution must partner with a retailer or other type of organisation. Usually, the retailer’s services bank doesn`t have a co-brand programme. In  most instances, the retailer may elect to work with a third-party that holds principal membership in an international cards organisation like Visa, Mastercard, Discover or American Express.

Walletto’s White Label payment card programme enables businesses to enter the market quickly and easily, allowing them to manage expenses and build brand recognition while increasing their market share and revenue all at the same time. Walletto’s White Label card issuing and processing services enable organisations to launch bespoke card programmes swiftly and efficiently, eliminating the need to invest in a standalone solution.

Walletto’s plastic and virtual payment cards stimulate savings and revenue by increasing card activation and customer retention, simultaneously building customer loyalty. In addition, the company’s e-wallet solution facilitates app and web-based card payments, presenting a fully customisable portal for companies to incorporate their own branding. From the customer’s perspective, Walletto enables them to pay for everyday purchases via Apple Pay and Google Pay, providing fast, convenient and innovative ways to pay at different stores, websites and apps.