COREDO > Business support > Instruments for Financial Institutions > Payment Card Issuance

Payment Card Issuance

Issuance of Debit, Prepaid and Corporate Cards for Licensed Financial Institutions

Payment card issuing enables financial institutions and fintech companies to launch their own card products under the Visa and Mastercard brands, expand their service offering, and strengthen customer loyalty. A card programme can become a key component of a broader payments and digital services ecosystem.

Since 2016, COREDO has been assisting clients with the launch of card programmes, helping EMIs, PSPs, and fintech companies address regulatory, operational, and technical matters — from selecting the appropriate issuing model to integrating with payment infrastructure.

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How Card Issuance Works

Card issuance involves several technical and regulatory layers. At the top level is the international payment scheme (Visa, Mastercard), which owns the brand and the authorisation network. Below that is the issuer (a licensed financial institution) that opens a card account or wallet for the client and bears legal responsibility for transactions. The processing platform provides real-time technical handling of transactions.

A key element of a card programme is the BIN (Bank Identification Number): the first 6–8 digits of the card number, identifying the issuer and card type. To obtain a BIN, it is necessary either to become a principal member of the payment scheme or to use BIN sponsorship — an arrangement with an already-accredited financial institution that provides access to its BIN.

The technical process of transaction handling covers authorisation (verification of limits and funds availability), clearing (reconciliation of data between banks) and settlement (transfer of funds). The entire cycle takes seconds in real time, but financial settlement occurs within 1–2 business days.

Modern card programmes require mandatory tokenisation. A token replaces the 16-digit card number with a unique cryptographic identifier for each digital wallet. This requirement applies to Apple Pay, Google Pay and other NFC platforms. Implementation via Visa Token Service (VTS) or Mastercard Digital Enablement Service (MDES) is mandatory for market entry.

Who This Service Is For

Launching a card programme is relevant for a wide range of licensed financial institutions and start-ups operating through partnership structures, as well as companies operating in non-EU markets seeking global card issuance capabilities.

Electronic Money Institutions (EMI).

EMIs licensed under EMD2 are authorised to independently issue prepaid cards linked to electronic wallets. This is the most common model for fintech.

Payment Institutions (PSP/PI).

Full-service PIs may issue cards for the execution of payment transactions. The minimum capital under PSD2 is EUR 125,000 for authorised PIs. For payment initiation services — EUR 50,000.

Fintech companies without a licence.

Start-ups and platforms without their own licence can obtain access to card issuance through BIN sponsorship. The sponsoring bank or EMI provides the regulatory shield, while the fintech manages the product and client experience under the sponsor’s brand or its own sub-brand.

Corporate treasuries.

Companies with large expenditure volumes issue corporate cards for managing travel expenses, procurement and day-to-day payments. Virtual cards with single-use limits have become the standard in B2B.

Requirements for Launching a Card Programme

Launching a card programme involves meeting three groups of requirements: regulatory, technical and scheme-related.

Regulatory prerequisites. Independent issuance requires an EMI licence (minimum capital EUR 350,000 under EMD2) or a PI licence (EUR 125,000 under PSD2). The licence is issued by the national regulator of the country of incorporation — for example, Česká národní banka (ČNB) in the Czech Republic, Lietuvos bankas in Lithuania, Latvijas Banka in Latvia. For cross-border activities, passportisation notification is required in the target EU Member States.

Payment scheme requirements. To operate with Visa or Mastercard, it is necessary either to become a principal member or to enter into a BIN sponsorship agreement. Principal membership involves due diligence by the scheme, technical certification and payment of security deposits. Accelerated onboarding programmes — Mastercard Fintech Express — are available for companies from a number of European jurisdictions.

Technical requirements. Transaction processing requires a certified processing platform supporting EMV (chip card standard), 3DS2 (online payment authentication) and NFC/tokenisation. Card personalisation and physical production is carried out through certified personalisation bureaux.

COREDO's Card Issuance Solutions

COREDO has been active in financial licensing and regulatory advisory since 2016, with expertise in both EU and non-EU markets. The team provides a full cycle of preparation for launching a card programme globally.

Regulatory analysis and jurisdiction selection.

COREDO assesses the client’s current licence status, identifies the optimal jurisdiction for obtaining an EMI or PI licence, and develops a roadmap. EU jurisdictions such as the Czech Republic, Lithuania and Estonia offer competitive licensing timelines and low minimum capital requirements under PSD2 and EMD2. For clients seeking international operations, COREDO also assists with card issuance structures in the UK (through FCA-regulated EMIs), Singapore (MAS-regulated providers), Dubai/UAE, and other key markets offering BIN sponsorship and card issuing partnerships.

Licensing support.

Preparation of a full documentation package for obtaining an EMI or PI licence: business plan, programme of activity, AML/CFT policies, description of governance structure and capital. Interaction with the national regulator at all stages of review.

Licence passportisation.

After obtaining the base licence, COREDO accompanies the passportisation notification to access the markets of other EU Member States — without the need to obtain separate licences in each country.

BIN sponsor and processing platform selection.

COREDO assists in selecting a BIN sponsor with optimal terms and a compatible processing platform that meets the technical requirements of Visa/Mastercard and the regulator. For global operations, card programmes with BIN sponsorship are available through regulated providers in the UK, Singapore, and other jurisdictions, enabling seamless expansion across multiple markets without separate licensing in each country.

AML/KYC infrastructure for the card programme.

Card issuance requires a robust client identification system. COREDO develops KYC/KYB procedures, transaction monitoring policies and internal regulations in accordance with the requirements of EMD2, PSD2 and the forthcoming AMLR.

Global Card Issuance Beyond the EU

While the EU market remains central, card issuance has expanded to become a truly global service. Visa and Mastercard operate in more than 200 countries and territories worldwide. COREDO helps clients access card issuance programmes not only in EU jurisdictions but also through:

United Kingdom: FCA-regulated EMIs and payment institutions continue to issue Visa and Mastercard cards, with established card issuing programmes available to both UK-based and international clients.

Singapore: The Monetary Authority of Singapore (MAS) regulates a growing fintech ecosystem where card issuance is available through licensed Digital Banks and Payment Institutions, offering an Asia-Pacific gateway.

Dubai and UAE: Regulated financial institutions in the UAE offer card issuance programmes and BIN sponsorship arrangements for companies seeking Middle East and Gulf region expansion.

Other Key Markets: Card issuance partnerships and programmes are available through regulated providers in other jurisdictions, allowing clients to establish multi-regional card operations.

These structures typically operate via BIN sponsorship agreements, allowing clients without local licenses to issue cards through established, regulated partners while maintaining control over customer experience and revenue generation.

Payment Card Regulation in Canada and Switzerland

Canada. Card issuance in Canada is regulated under the Retail Payment Activities Act (RPAA) and the Payment Card Networks Act. Financial institutions issuing payment cards must be subject to federal or provincial banking regulation. Money Services Businesses (MSBs) engaged in card issuance are required to register with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). Payments Canada oversees the national clearing and settlement infrastructure, while the Bank of Canada maintains oversight of systemic payment systems. Interac — Canada’s domestic network — operates alongside Visa and Mastercard for card transactions.

Switzerland. Card issuance in Switzerland is regulated by the Swiss Financial Market Supervisory Authority (FINMA), which oversees institutions licensed to issue payment instruments. The Swiss National Bank (SNB) maintains oversight of payment systems and financial infrastructure to ensure stability. Unlike the European Union, Switzerland has not adopted a PSD2 equivalent; however, Swiss payment institutions must comply with comparable standards for consumer protection, fraud prevention and transaction security. SIX Payment Services operates as the primary domestic card and payment infrastructure provider, facilitating settlement and clearing for Swiss payment schemes.

Pricing

The cost of support for launching a card programme is calculated individually — depending on the client’s current licence status, the chosen jurisdiction, the type of card product and the required scope of work.

Contact COREDO for an individual cost calculation.

Our Experts

Pavel Kos

Head of Legal at COREDO. Pavel specialises in financial licensing and regulatory advisory for financial institutions in the EU. With COREDO since 2017, he has led legal projects in the fields of EMI, PSP and financial infrastructure for more than 7 years.

Daniil Saprykin

Head of Customer Success. Daniil ensures prompt communication, coordination between the client and the legal team, and deadline management at all project stages.

Frequently Asked Questions

Is a licence required to issue payment cards?

Yes. Independent issuance of payment cards requires an EMI licence (under Directive 2009/110/EC) or a PI licence (under Directive 2015/2366/EU). Fintech companies without a licence can issue cards through BIN sponsorship — an arrangement with a licensed financial institution. COREDO supports both licence acquisition and the search for a BIN sponsor.

What is the minimum capital required for an EMI licence?

Obtaining an EMI licence requires a minimum initial capital of EUR 350,000 pursuant to Article 4 of the EMD2 Directive. For a full-service payment institution (PI) — EUR 125,000 under PSD2. After the licence is obtained, own funds requirements are calculated dynamically based on the volume of operations.

Can one licence cover the entire EU?

Yes. The European “single passport” allows a licensed EMI or PI to provide services in all 27 EU Member States on the basis of a single licence through the passportisation mechanism (freedom of services or establishment notification). COREDO supports this process.

What is BIN sponsorship and how does it work?

BIN (Bank Identification Number) refers to the first 6–8 digits of the card number, identifying the issuer. BIN sponsorship allows a fintech company without its own BIN to issue cards under the BIN of a licensed financial institution-sponsor. The sponsor bears regulatory responsibility before the payment scheme; the fintech manages the product. This is an accelerated path to card issuance without full licensing.

Which payment schemes are available?

The most common in the EU are Visa and Mastercard. Both offer onboarding programmes for financial institutions, including accelerated tracks for fintech. The European SEPA scheme and local national systems operate in parallel. The choice of scheme depends on the geography of operations and the target client segment.

How long does it take to launch a card programme?

Timelines depend on whether a licence already exists. If an EMI/PI licence is already in place, the technical launch of a card programme takes 3 to 6 months. If a licence needs to be obtained, the total time is 6 to 18 months depending on the jurisdiction. COREDO assesses the client’s specific situation and proposes the optimal route.

Submit Application

Ready to launch a card programme or want to assess the regulatory prerequisites? COREDO’s specialists will prepare an individual plan taking into account your licence, jurisdiction and business model.

Or contact us directly: info@coredo.eu | +420 228 886 867