Revolutionizing Banking: How Cobranded Cards and BaaS Are Changing the Game

Banking as a Service (BaaS) is a relatively new concept in the banking industry that allows non-bank companies to offer banking services to their customers using the infrastructure of a partnering bank. One of the strategies to increase the banking portfolio and boost partner retail transaction turnover is the issuance of cobranded cards that offer a hybrid of bank loyalty and merchant loyalty programs.

The issuance of cobranded cards was one of the strategies used to increase the bank’s portfolio and partner transaction volume. It was not always an easy task, especially when it came to creating two balances. However, I recently read about a product launched by a FinTech company Sudo that allows retailers working with the company to have their own branded cards. These cards can be used for online and offline payments, with the ability to set limits and monitor expenses.

Thanks to embedded finance technology, customers can create virtual and physical cards in just a few clicks. Sellers can offer customization options, such as a unique design to connect with their brand or environmentally friendly materials like biodegradable plastic. For retailers, the Sudo card is marketed as a way to save on acquiring fees and earn more by receiving a percentage of card payments. By partnering with fintech companies like

Sudo, retailers can expand their financial services offerings, provide a better customer experience, and increase customer loyalty. Meanwhile, partnering banks benefit from new revenue streams and the opportunity to tap into the fintech market.

Overall, BaaS and cobranded cards have the potential to transform the banking industry and provide new opportunities for both banks and non-bank companies.