In the fast-moving world of digital payments, launching a card programme, whether virtual or physical, requires more than just an idea. Businesses looking to issue debit, credit, prepaid, or virtual cards have several routes to enter the market. The right approach depends on regulatory requirements, business model, and desired level of control.
The main card issuance methods available on the market today, include:
- direct card issuing (the company applies for a principal membership with Visa, Mastercard, or American Express)
- BIN Sponsorship
- co-branded cards (typically used for reward and cashback programs).
The most common cases are direct issuing payment cards and BIN sponsorships, which allow businesses to issue various types of payment cards.
We have previously written a detailed blog post about direct card issuing, covering its benefits, challenges, and how businesses can become direct issuers with Visa, Mastercard, or other networks.
Let’s focus on BIN sponsorship in this article, its definition, requirements, benefits, and challenges.
What is BIN sponsorship?
A Bank Identification Number (BIN), also known as a Banking Identification Number, is the first 6-8 digits of a payment card number, used to identify the issuing institution. BIN sponsorship is a model where an established financial institution with a principal membership from card networks (such as Visa, Mastercard, or American Express) allows a third party — typically a FinTech or payment company to issue cards under its umbrella.
Instead of becoming a direct card issuer, which requires regulatory approvals and extensive financial infrastructure, businesses can partner with a BIN sponsor to access the necessary capabilities while focusing on product development and customer acquisition.
How does BIN sponsorship work?
- A licensed bank or financial institution holds direct membership with Visa, Mastercard, or another network.
- A FinTech or payment provider partners with this institution to use their BIN to issue cards.
- The BIN sponsor provides compliance oversight, network access, and settlement services.
- The BIN setup process is a critical component when engaging with BIN sponsors, as it streamlines access to payment card schemes and ensures ongoing support and compliance with relevant regulations.
- The fintech customises cardholder experiences, branding, and functionalities while the sponsor manages regulatory responsibilities.
Difference between direct card issuing and BIN sponsorship
While both card issuing and BIN sponsorship are essential in the payment ecosystem, they serve distinct roles in enabling businesses to issue and manage payment cards.
| Feature | Card Issuing | BIN Sponsorship |
|---|---|---|
| Definition | The process of issuing debit, credit, or prepaid cards directly to customers. The entity responsible for card issuing is typically a financial institution. | A partnership model where a licensed financial institution allows a fintech or payment provider to use its BIN to issue cards without becoming a direct issuer. |
| Who Does It? | Licensed banks or financial institutions with direct membership in card networks like Visa, Mastercard, or American Express. | Banks or financial institutions acting as BIN sponsors for third-party fintechs, neobanks, and payment companies. |
| Regulatory Status | Requires a principal membership with a card network and compliance with financial regulations. | The fintech company does not need direct regulatory approval but must follow compliance rules set by the BIN sponsor. |
| Compliance Responsibility | The issuer handles KYC, AML, fraud monitoring, and risk management. | The BIN sponsor ensures compliance, while the FinTech partner focuses on branding, customer experience, and product features. |
| Time to Market | Long (can take years to obtain direct issuing licences and set up infrastructure). | Shorter (months), since the fintech leverages an existing BIN sponsor’s regulatory approvals. |
| Cost & Investment | High (licensing, compliance, infrastructure, and risk management costs). | Lower cost, as the fintech does not need to become a direct issuer. Revenue is shared with the BIN sponsor. |
| Control & Customisation | Full control over pricing, card features, and transaction approvals. | Limited control, as the BIN sponsor dictates compliance, settlement processes, and sometimes pricing. |
| Common Users | Banks, digital banks, and large-scale fintech companies that can afford full compliance and regulatory approval. | Startups, fintechs, neobanks, and embedded finance providers looking for a fast and cost-effective way to issue cards. |
Direct card issuing refers to the process of directly issuing payment cards as a licensed financial institution with all necessary regulatory approvals.
In contrast, BIN sponsorship provides an alternative pathway where FinTechs can offer card products by leveraging a sponsor’s existing regulatory approvals and financial infrastructure without becoming direct issuers themselves. This arrangement is particularly attractive to FinTechs seeking to accelerate their market entry, as it allows them to focus on their core technology and customer experience while relying on an established banking partner to handle compliance requirements and provide network access. BIN sponsorship creates a symbiotic relationship that enables innovation while maintaining regulatory standards through partnership with experienced financial institutions.
What are the benefits of BIN sponsorship?
BIN sponsorship offers multiple benefits, making it an attractive option for fintech companies looking to enter the card issuance market quickly.
1. Faster time to market
Becoming a direct card issuer requires extensive regulatory approval, compliance frameworks, and financial reserves. BIN sponsorship allows fintechs to bypass these barriers and launch products in months rather than years.
2. Regulatory and compliance support
Payment regulations vary by region and are often complex. A BIN sponsor ensures adherence to Know Your Customer (KYC), Anti-Money Laundering (AML), and transaction monitoring rules, reducing the fintech’s compliance burden.
3. Cost-efficient scaling
Direct issuer licences can be expensive to maintain. BIN sponsorship provides a cost-effective route for startups by leveraging the sponsor’s infrastructure and network relationships.
4. Access to global networks
A principal membership with Visa or Mastercard requires rigorous vetting and high transaction volumes. With a BIN sponsor, fintechs can access worldwide card networks without needing to secure direct approval.
5. Risk management
Card fraud and chargeback handling are critical components of payment processing. A BIN sponsor provides risk management frameworks, helping fintechs operate securely without the need to build fraud prevention tools from scratch.
BIN sponsorship requirements: what FinTechs and financial institutions need to qualify
BIN sponsorship enables fintechs, neobanks, and payment service providers to issue cards without obtaining a direct issuing license. However, financial institutions acting as BIN sponsors set strict requirements to ensure regulatory compliance and risk management.
1. Business legitimacy & licensing
- Registered legal entity: The FinTech must be an officially registered business in a jurisdiction where the BIN sponsor operates.
- Appropriate licensing (if required): Depending on the business model and regulatory framework, the fintech may need an Electronic Money Institution (EMI) licence or a Payment Institution (PI) licence (especially in Europe under PSD2 regulations). Partnering with a regulated financial institution ensures adherence to financial regulations and risk management standards.
2. Compliance & risk management
- AML/KYC procedures: The FinTech must have robust Know Your Customer (KYC) and Anti-Money Laundering (AML) processes in place to prevent fraud and financial crimes.
- Fraud prevention & risk controls: The sponsor will assess the FinTec’s risk management policies, including:
- Transaction monitoring
- Chargeback handling
- Fraud detection tools
- Secure onboarding processes
- Regulatory adherence: The FinTech must comply with local and international regulations, such as:
- GDPR (for EU customer data protection)
- PCI DSS (for secure card transactions)
- PSD2 (for payment services in Europe)
- Bank Secrecy Act (BSA) and FinCEN (for US-based companies)
- Scheme approved BINs: Only direct scheme members can sponsor clients to use scheme approved bins, which are essential for compliant transaction processing and card issuance.
3. Business model & financial stability
- Clear business case: The FinTech must demonstrate how card issuance fits into its business strategy, detailing expected use cases (e.g., neobank services, prepaid cards, corporate expense cards).
- Sustainable financials: Sponsors often require:
- Proof of funding or financial backing
- A stable revenue model
- Adequate capital reserves (to cover potential losses or operational risks)
4. Technology & integration readiness
- API readiness: Many BIN sponsors provide APIs for fintechs to integrate card issuance, transaction processing, and user account management. The fintech must have a development team capable of handling these integrations.
- PCI compliance: If storing or processing cardholder data, the FinTech must adhere to Payment Card Industry Data Security Standards (PCI DSS).
5. Partnership & revenue model
- Revenue sharing agreement: Most BIN sponsors require a revenue-sharing model where the fintech splits interchange fees or service charges.
- Operational fees: Fintechs must cover costs such as:
- Setup fees for onboarding
- Per-card issuance fees
- Transaction fees for processing payments
6. Customer support & dispute handling
- Chargeback & dispute resolution: BIN sponsors expect fintechs to handle customer disputes efficiently to maintain a low chargeback ratio (often below 1%).
- Dedicated support: Having a support team capable of handling customer queries, lost card replacements, and fraud claims is essential.
Challenges and considerations
While BIN sponsorship offers many advantages, fintechs must be aware of the challenges and limitations that come with it.
By avoiding direct scheme membership, fintech businesses can reduce costs and simplify the complexities of launching payment solutions.
1. Limited Control
The sponsoring institution holds final authority over compliance, risk management, and transaction approvals. This may limit a fintech’s ability to introduce innovative features or customise the user experience fully.
2. Revenue Sharing
Since the BIN sponsor provides key services, fintechs typically share a portion of the revenue generated from card transactions, interchange fees, and account maintenance.
3. Dependence on the Sponsor
Any operational changes, regulatory issues, or policy shifts on the sponsor’s side can directly impact the fintech’s card programme. Choosing a reliable and transparent sponsor is crucial.
How to choose the right BIN sponsor
Selecting the right BIN sponsor can define the success of a fintech’s card programme. Partnering with BIN sponsors allows businesses to leverage the established payment processing infrastructure of major card networks like Visa and Mastercard. Here are key factors to consider:
1. Major card networks availability
Ensure the sponsor has partnerships with major card schemes like Visa, Mastercard, or the relevant networks needed for your business.
2. Compliance and regulatory expertise
A good BIN sponsor should have a strong track record in compliance, ensuring seamless adherence to local and international financial regulations.
3. Geographic reach
Consider whether the sponsor provides cross-border issuance and supports multiple currencies if your business operates globally.
4. Pricing and fee structure
Understand the costs involved, including setup fees, transaction fees, and revenue-sharing models.
5. API and integration capabilities
For fintechs building custom digital experiences, the BIN sponsor should offer robust APIs that integrate seamlessly with existing platforms.
BIN sponsors list by regions
Several financial institutions and service providers offer BIN sponsorship to help fintech companies and businesses issue payment cards without obtaining a direct issuing license. Here are some notable BIN sponsors:
United States
- Zenus Bank: Offers BIN sponsorship programs enabling businesses to issue virtual and physical USD debit cards globally.
- Stripe Issuing: Provides an issuing platform that enables businesses to create, manage, and distribute virtual and physical cards.
United Kingdom
- Enfuce: Holds its own Electronic Money Institution (EMI) licenses and offers BIN sponsorship services, allowing companies to issue various types of payment cards.
- B4B Payments: Provides end-to-end BIN sponsorship services, supporting fintechs from co-branding to becoming fully regulated issuers and scheme members.
Europe
- Enfuce: As a principal member of Visa and Mastercard, Enfuce offers BIN sponsorship services across European Economic Area (EEA) countries, enabling rapid market entry for card programs.
- FINCI: A licensed EMI and principal member of Mastercard, FINCI provides BIN sponsorship services, assisting businesses in launching card products efficiently.
- Marqeta: Through its acquisition of TransactPay, Marqeta offers BIN sponsorship and card program management capabilities across the UK and EU.
How much does BIN sponsorship cost?
BIN sponsorship fees vary based on the sponsoring bank, card network (Visa, Mastercard, etc.), region, and service scope. These fees generally cover compliance, licensing, card issuance, transaction processing, and regulatory oversight. They also include costs related to payment processing, which simplifies and streamlines transactions by improving speed, accuracy, and providing access to extensive payment networks and infrastructure.
Common BIN sponsorship fees
The cost structure typically includes the following:
| Fee Type | Description | Estimated range |
|---|---|---|
| Setup fee | One-time cost to onboard the fintech, set up BINs, and integrate with card networks. | $10,000 – $50,000 |
| Monthly BIN maintenance fee | Ongoing fee for maintaining BIN allocation and compliance support. | $2,000 – $10,000/month |
| Per card issuance fee | Cost for issuing physical or virtual cards, including manufacturing and delivery. | $2 – $10 per card |
| Transaction fees | Processing costs per transaction (including interchange, network, and issuer fees). | 0.1% – 2% of transaction value |
| Revenue share | Some BIN sponsors take a percentage of interchange revenue. | 10% – 50% of interchange fees |
| Chargeback handling fee | Fees for handling disputes and chargebacks. | $15 – $50 per dispute |
| Compliance & KYC fees | Regulatory checks, fraud prevention, and anti-money laundering (AML) monitoring. | Varies ($0.10 – $1 per KYC check) |
Factors affecting BIN sponsorship fees
- Card Type: Prepaid, debit, or credit cards have different cost structures.
- Region: Fees vary depending on local regulations and card network pricing.
- Volume: Higher transaction volumes may lead to lower per-card or per-transaction costs, making it more efficient to process payments.
- Service Scope: Some BIN sponsors offer additional services such as fraud protection, risk management, or enhanced reporting.
Real-life examples of BIN sponsorships
Here are some real-world scenarios where BIN sponsorship plays a crucial role:
1. Neobanks Launching Debit and Prepaid Cards
Example: A digital-only bank like Revolut or Monzo
Use Case:
- A neobank wants to offer debit and prepaid cards to its customers without holding a banking license.
- Instead of applying for a direct Visa or Mastercard issuing license, the neobank partners with a BIN sponsor.
- The BIN sponsor issues the cards under its license, while the neobank focuses on branding, customer acquisition, and financial services.
Outcome: The neobank quickly enters the market with branded cards and compliance handled by the BIN sponsor.
2. Corporate expense & payroll card programs
Example: Brex, Ramp, or Pleo
Use Case:
- A company wants to issue corporate expense cards for employees to manage business spending efficiently.
- Instead of dealing with regulatory approvals and card network compliance, they use a BIN sponsor to issue cards.
- The fintech integrates expense tracking, real-time spending limits, and employee card issuance through APIs.
Outcome: Businesses automate expense management while ensuring compliance through the BIN sponsor.
3. Embedded finance & white-label card issuance
Example: Uber, Shopify Balance, or AirBnB payouts
Use Case:
- A non-financial company wants to issue branded payment cards (e.g., Uber Pro Cards for drivers or Shopify Balance cards for merchants).
- Instead of building a payments infrastructure, they use a BIN sponsor to issue white-label cards.
- The cards allow payouts, commission management, and instant withdrawals for gig workers, merchants, or freelancers.
Outcome: The company enhances customer loyalty and monetizes financial transactions without needing a banking license.
4. Travel & multi-currency cards
Example: Wise (formerly TransferWise) or Revolut travel cards
Use Case:
- A fintech wants to issue multi-currency prepaid cards for travelers and expatriates.
- Instead of securing a direct issuer license, they partner with a BIN sponsor to issue Mastercard/Visa cards.
- The fintech adds FX conversion, global ATM withdrawals, and real-time spending alerts via APIs.
Outcome: Travelers enjoy seamless payments worldwide, while the fintech leverages BIN sponsorship to scale internationally.
5. Merchant acquiring & payment facilitators (PayFacs)
Example: Stripe, Square, or Adyen
- A fintech wants to help merchants accept card payments without becoming a direct acquirer.
- Instead of applying for Visa/Mastercard acquiring licenses, they partner with a BIN sponsor that holds an acquiring license.
- The BIN sponsor handles settlements, risk management, and compliance, while the fintech focuses on onboarding merchants and processing payments.
Outcome: Small businesses can accept card payments via the fintech’s platform without needing direct acquirer status.
6. Crypto-to-fiat payment cards
Example: Crypto.com, Binance Card, or Coinbase Card
- A cryptocurrency exchange wants to issue crypto-backed debit cards for users to spend crypto like cash.
- Instead of dealing with fiat banking and Visa/Mastercard approvals, they partner with a BIN sponsor.
- The sponsor allows real-time crypto-to-fiat conversion at point-of-sale, enabling cardholders to use their crypto assets anywhere.
Outcome: Users can spend cryptocurrency globally while ensuring regulatory compliance through the BIN sponsor.
7. BNPL (Buy Now, Pay Later) & virtual cards
Example: Klarna, Affirm, or Afterpay
- A fintech wants to issue virtual Buy Now, Pay Later (BNPL) cards that consumers can use for online shopping.
- Instead of securing direct issuing rights, they use a BIN sponsor to enable instant credit issuance.
- The fintech integrates BNPL financing directly into checkout processes.
Outcome: Consumers enjoy seamless deferred payments while merchants benefit from increased conversions.
Why BIN sponsorship matters?
BIN sponsorship allows FinTechs and businesses to issue payment cards, process transactions, and scale financial services without heavy regulatory burdens. Whether for neobanks, embedded finance, travel FinTechs, crypto payments, or BNPL solutions, BIN sponsorship remains a strategic enabler for innovation in digital finance.
How SDK.finance enables fast card issuing with BIN sponsorship?
Launching a card issuing program can be complex, requiring regulatory approvals, compliance with payment networks, and technical integration. SDK.finance simplifies this process by providing a ready-to-go solution with pre-integrated BIN sponsors like Marqeta, allowing businesses to issue payment cards quickly and efficiently.
Why Choose SDK.finance for BIN Sponsorship-Based Card Issuing?
- Pre-Integrated BIN Sponsors – Our platform is already connected with leading BIN sponsors eliminating the need for lengthy integrations.
- Faster Time to Market – Skip the hassle of acquiring direct issuing licenses and start issuing cards within months instead of years.
- Seamless API Integration – Easily connect our modular, API-driven platform with your fintech app, digital wallet, or embedded finance solution.
- PCI DSS Level 1 Certified – Ensures secure and compliant payment card operations.
- Scalable & Flexible – Issue virtual, debit, prepaid, or corporate expense cards, with customizable spending controls.
Who Can Benefit?
- Neobanks – Quickly launch branded debit and prepaid cards.
- Fintech Startups – Enter the market with a compliant, pre-integrated card issuing solution.
- Embedded аinance зroviders – Offer seamless card services within your platform.
- Corporate expense & payroll platforms – Provide employees with corporate spending cards.
With SDK.finance, you don’t need to worry about compliance, technical complexity, or regulatory approvals. Our pre-built BIN sponsor integrations make card issuance simpler, faster, and more accessible for fintech innovators.
Ready to launch your own payment card program? Contact us today to get started!
