Streaming movies on demand, receiving same-day deliveries, and settling bills at the click of a button all speak to the clear demand of today’s consumers: we want it and we want it now. This concept of “instant gratification” has permeated every aspect of our lives, and businesses are responding in-kind with operational changes that are designed to meet these expectations.
Instant issuance - or providing functioning debit/credit cards on the spot - is growing for this reason. Shipments of instant issuance cards are expected to grow from 305 million in 2023 to 559 million by 2028. This growth is in direct response to businesses recognizing the need to provide and move money quickly, safely, and flexibly.
From relief agencies supporting disaster victims to businesses running promotional campaigns, instant issuance is a solution to the challenge of being able to distribute funds instantly. In this blog, we will explore what makes instant issuance such a game-changer, the industries it benefits most and the key advantages that come from adopting this innovative solution.
What is Instant Issuance?
As the name implies, instant issuance means the ability to create and distribute a fully functional debit, credit or prepaid card in real time. Unlike traditional card issuance which can take days or weeks to process and deliver via the mail, instant issuance allows businesses to provide activated cards on the spot.
How Instant Issuance Works
The instant issuance process involves just a few short steps:
- Card Inventory Management - the company orders physical cards in order to maintain a stock that is available for use when needed.
- Cardholder Eligibility Verification - when a customer comes in (or any other need is determined), an agent qualifies the customer’s eligibility and assigns them a card from the inventory.
- Activation - the card is activated and loaded with funds as per the requirements of the specific situation.
- Immediate Usability - the customer walks away from the transaction with the ability to use the card instantly.
Who Benefits from Instant Issuance
Instant issuance is a versatile solution applicable to a wide range of industries. Some of the biggest beneficiaries include relief organizations who can use this method to provide financial aid to beneficiaries quickly during emergencies, reducing delays in getting funds to where they are needed most.
It’s also an ideal solution for conference organizers or other businesses that are running promotional or loyalty campaigns and want to provide people with incentives that they can use immediately.
Key Benefits of Instant Issuance Solutions
Adopting an instant issuance solution allows organizations to meet customer demands for speed, security and convenience. They can expect to receive the following benefits:
- Immediate Access to Funds - with instant issuance, organizations are empowered to distribute funds in real-time, which is crucial for relief organizations providing emergency aid.
- Enhanced Customer Experience - customers appreciate the quick access to funds when needed, as evidenced by research that shows cards that are issued instantly are generally used within 93 minutes of activation.
- Operational Efficiency - an automated instant issuance solution reduces the administrative overhead associated with mailing and handling cards. In some cases, companies may offer self-service kiosks or digital platforms that further streamline operations and provide 24/7 service to customers without increasing staff time.
- Customization and Branding - cards can be designed and branded to reinforce the organizations’ identity and create a cohesive experience for the end users. This is especially important for promotional campaigns and loyalty programs where such personalized and branded solutions can build trust and visibility.
- Security and Fraud Prevention - instant issuance solutions are designed with advanced security features, including encrypted data transmission and identity verification via biometrics or secure online platforms. These built-in measures are there to protect both the issuer and the end user, reducing misuse or unauthorized issuance.
Real World Applications of Instant Issuance
Organizations that have already incorporated instant issuance into their portfolios are better able to manage and distribute funds, especially in scenarios where immediacy and control are critical. Following are two real-world examples:
- H&R Block: Accelerating Tax Refunds
Everyone is familiar with the ads around tax season and H&R Block has become known for reimagining how customers can receive their tax refunds. Instead of waiting for the IRS to issue and mail a check, for a small fee, H&R Block provides them with a prepaid card loaded with instant cash. 90% of customers choose the immediate option, as they value the speed and convenience.
- Red Cross: Supporting Disaster Relief
The Red Cross has field workers & volunteers in disparate locations, dispatched to provide relief when and where it’s needed. By providing these relief workers with instant issuance prepaid cards, the Red Cross can ensure that those in need receive the aid as quickly as possible with the fewest bureaucratic hurdles.
What to Look for in an Instant Issuance Provider
Choosing the right instant issuance provider can make or break the success of the solution. Some of the key factors to consider when evaluating providers include:
- Proven Security Measures - whenever you’re dealing with funds and financial data, security and fraud prevention are non-negotiables. Make sure any solution you consider is fully PCI-compliant, uses encryption for secure transmission, and has fraud prevention tools in place such as real-time monitoring and identity verification.
- Customization Capabilities - look for a provider that can tailor the solution to meet specific needs. For example, cards should be able to be customized to match your brand with logos and other messaging that reinforces your organization’s identity.
- Easy Integration and Scalability - businesses are dynamic and many use a variety of technological systems so it’s important to choose an instant issuance solution that can easily integrate with existing systems via an API. The solution should also be able to scale up as needed and increase issuance volumes without compromising on speed or security.
- Data Insights and Reporting - it’s not just about issuing funds instantly, but also monitoring and analyzing usage to enable better decision-making in the future. The solution should offer detailed transaction data to track spending patterns and optimize programs.
- Reliable Support and Expertise - no matter how intuitive or user-friendly a solution may be, there will also be a need for troubleshooting or support, and it’s important to choose a provider that will be there to help when needed. Look for a provider that offers access to a responsive support team to minimize downtime and resolve issues quickly.
Overcoming Common Challenges in Adopting Instant Issuance
While there are many benefits to instant issuance, there are some challenges that do need to be addressed. These include:
The Challenge: Integration with Existing Systems
If an instant issuance solution doesn’t easily integrate with existing systems, it will be difficult for employees to get on board with using it and it can easily turn from a potential profit-maker to an unused solution.
To overcome this challenge, it’s important to look for providers that offer API-based solutions to facilitate easy connectivity with existing internal platforms. It may also help to choose a provider with past experience in similar implementations to avoid compatibility issues.
The Challenge: Training and User Adoption
Introducing a new system can always be disruptive, especially if it requires significant training for staff or if most of the staff are unfamiliar with payment solutions.
By choosing a solution with an intuitive interface, the learning curve can be minimized, making it easier for employees to adapt. It can also help to partner with a provider that offers comprehensive onboarding support, including training sessions, tutorials and ongoing assistance.
The Challenge: Security and Fraud
Ensuring that instant issuance systems are secure and protected against fraud is a big concern, especially for relief organizations who need to be sure that the funds are getting where they need to go and are not being misused.
Whether it’s a relief organization or any other company, it is critical to choose a solution that incorporates the most updated security features like encrypted data transmission, biometric verification and advanced fraud detection tools. Another layer of protection includes the ability to implement controls such as restricting spending to specific categories and performing eligibility checks in real time.
Delivering Speed, Security and Success with Instant Issuance
The demand for speed, security and flexibility as well as the ability to meet customers’ needs for instant gratification has never been higher and instant issuance delivers on all fronts. From enabling relief organizations like the Red Cross to distribute aid with precision and efficiency, to empowering businesses like H&R Block to transform customer experiences, instant issuance solutions are proving their value across industries.
Ready to explore how instant issuance can transform your organization’s operations? Contact us to learn more.
