The rise and integration of fintech solutions have led companies to face challenges such as obtaining licenses and complying with strict data protection regulations. A key challenge in providing financial services is managing the BIN, which is essential for issuing cards and ensuring secure transactions within a legal framework.
Many financial institutions and fintech providers offer BIN sponsorship, but Inswitch takes a more flexible, scalable, and comprehensive approach. With multiple BIN issuance models—including full issuance, affiliate membership, BIN sponsorship, and processing-only solutions—Inswitch adapts to the needs of businesses, ensuring compliance, efficiency, and faster go-to-market execution.
Here’s what makes Inswitch a standout partner in card issuance and processing:
Traditional banks and legacy fintech providers often require months to approve BIN sponsorship agreements, leading to delays and operational inefficiencies. Inswitch streamlines this process with its Mastercard license and regulatory expertise, allowing businesses to launch branded card programs in a fraction of the time—whether they need full issuance or just processing capabilities.
Many BIN providers impose rigid structures, forcing businesses to adapt to predefined models. Inswitch eliminates these constraints with a fully modular, API-based platform, enabling companies to seamlessly integrate card issuing, transaction processing, and financial services into their existing systems with minimal friction. This approach supports both businesses that require end-to-end solutions and those that only need processing services.
Unlike standalone BIN sponsors, Inswitch provides an end-to-end embedded finance ecosystem that extends far beyond card issuance. Businesses can issue and process cards while also integrating digital wallets, payment processing, and cross-border remittances—all under one unified platform. This not only simplifies operations but also reduces costs and dependency on multiple vendors.
By offering multiple BIN issuance models, local regulatory expertise, and a fully integrated financial stack, Inswitch empowers businesses to retain greater control over their financial services, optimize operational efficiency, and accelerate market entry with a competitive edge.
Having a comprehensive solution like Inswitch Issuing and Processing allows companies not only to access their own BIN, but also to manage the entire card issuance and processing process from a single platform. From designing and customizing physical and virtual card programs to real-time transaction authorization, Inswitch streamlines the integration of fintech services in an agile, secure, and cost-effective manner.
While traditional banks remain the main card issuers, the landscape has expanded with the growth of fintech solutions, leading more financial institutions and financing companies to enter the market.
Starting from scratch without the required experience can be an additional challenge when launching financial solutions. That’s why having a fintech technology partner that provides the necessary infrastructure, along with a partner with access to a BIN (Bank Identification Number), is essential. This requirement is fundamental for issuing any type of card and ensuring project success.
The BIN serves as an issuer identification number that defines key aspects such as the associated payment network, card type (credit, debit, prepaid, etc.), and the issuing country. This information is vital to guarantee secure and seamless transactions in the financial industry.
Regardless of the industry in which they operate, companies are integrating fintech solutions to automate financial processes and services or develop their own innovative products in areas such as digital payments, money transfers, alternative financing, wealth management, and more.
One common way to integrate financial services is through card issuance to expand offerings and enter new markets. However, this process can be complex and expensive for organizations. In the U.S., for example, only banks can issue cards. To offer them, companies must partner with a bank, use a payment software, and comply with regulations such as KYC.
During the card issuance process, companies must decide, among other factors, which providers, technologies, and implementation model best align with regulatory requirements and the high expectations of users in an increasingly competitive environment. Having a licensed BIN is crucial for integrating fintech solutions and setting up a card program while complying with government, card network, and banking regulations.
In practical terms, obtaining a card program license requires compliance with the Payment Card Industry Data Security Standard (PCI DSS). This involves establishing a secure network and systems, protecting cardholder data, and maintaining a management program.
Ultimately, companies also face the challenge of implementing fraud prevention measures and ensuring user data protection, as these issues are becoming an increasing concern for organizations worldwide. In 2024, the average cost of a data breach in Latin America was USD 2.76 million, according to technology firm IBM.
One of the common challenges in card issuance is obtaining and managing a proprietary BIN, as it is often considered a lengthy and complex process within the industry.
Although it may go unnoticed by users, the BIN identification is essential to the financial system as it enables connections between institutions and global and local payment networks. Its importance lies in its ability to facilitate secure and efficient transactions.
In accordance with global payment standards the first digit of the six-digit BIN indicates the company or industry associated with the card, while the following five digits identify the issuing bank of the credit, debit, or prepaid card.
"If your card starts with 1 or 2, it belongs to the airline industry; those starting with 3 are for travel and entertainment, such as American Express; cards starting with 4 are Visa, 5 is Mastercard, 6 is Discover Card; 7 corresponds to the oil industry, 8 to telecommunications, and 9 is reserved for the country where the card operates."
Early-stage fintech companies that need to launch these services typically turn to BIN Sponsorship, which is essentially an agreement between a regulated financial institution and a company, allowing the latter to issue cards under the bank’s license to speed up the process. This is why having access to a BIN is a valuable asset for organizations that obtain one.
Inswitch offers a more flexible and scalable approach compared to traditional models, enabling companies to obtain their own BIN through its Mastercard license and efficiently manage both card issuance and processing. With solutions like Inswitch Issuing and Processing, businesses can launch physical and virtual card programs in a fast, secure, and customized manner, optimizing costs, enhancing customer experience, and gaining full control over operations. This allows companies to reduce dependency on intermediaries and stand out in a competitive market.
Additionally, by having a proprietary BIN through Mastercard, Inswitch not only complies with local regulations but also has the necessary agreements with financial institutions to process transactions and settlements. This reinforces its strategic position within the payment chain, allowing it to manage transactions for both its own cards and third-party cards.
Some of the key advantages of Inswitch having its own BIN include the ability to offer customized processing solutions to companies without in-house technology, optimize costs through local issuance, and reduce reliance on intermediaries. Additionally, it enhances omnichannel capabilities by enabling payments in physical stores, e-commerce, and mobile applications, all from a single platform.
According to Nilson Report (2024), the number of credit, debit, and prepaid cards in circulation worldwide reached 26.71 billion, with projections indicating an increase of 3.29 billion over the next five years.
This trend is driven by the growing number of companies seeking to offer fintech solutions that go beyond card issuance, including payment processing, digital wallets, and digital banking.
At the same time, the fintech ecosystem has experienced significant expansion, establishing itself as one of the main drivers of entrepreneurship and global investment. Statista projects that the number of digital payment users will steadily grow to reach 4.81 billion by 2028 worldwide.
According to Inter-American Development Bank (IDB) data, the number of fintech companies in Latin America grew from 703 companies in 18 countries in 2017 to 3,069 in 26 countries in 2023. This growth is driven by the high demand for financial services, advancements in digital financial infrastructure, and the availability of specialized talent.
In the region, Brazil leads in the number of fintech startups, accounting for 24% of the total, followed by Mexico (20%), Colombia (13%), and Argentina and Chile (10% each), according to the report.
As Mexico strengthens its position as a fintech hub in Latin America, it serves as a platform for regional expansion, creating opportunities for Inswitch to expand its presence in the fast-evolving payments ecosystem across the region.
Opportunities to Further Strengthen Latin America's Local Payment Infrastructure
As one of the most promising markets for fintech solutions in the coming years, Latin America presents a strategic opportunity for businesses to compete with traditional banks and other fintech companies. Having a proprietary, licensed BIN is a significant advantage, enabling companies to operate under central bank and financial authority regulations, ensuring transparency and trust for users.
In the specific case of Latin America, having a licensed BIN offers key advantages such as lower costs for national payment processing and compliance with local regulations, making tax and regulatory operations more efficient. Additionally, it grants access to national payment networks like SPEI and CoDi, along with the capability to process international payments. This enhances the user experience by allowing customers to receive cards in local currency, simplifying transactions and eliminating the need for currency conversions.
In this context, the issuance of debit, credit, or prepaid cards that comply with local regulations, and are usable both nationally and internationally, further strengthens the local payment infrastructure and the fintech ecosystem.
In Latin America, according to IDB data, fintech companies primarily focus on underbanked and unbanked individuals and businesses, contributing to financial inclusion. Additionally, the IDB highlights that countries with "established or provisional fintech regulations have experienced growth and consolidation in their fintech ecosystems".
In the region, fintech companies stand out particularly in the payments and remittances segment, which accounts for 21% of all fintech firms, followed by lending (19%) and corporate financial management (13%). Meanwhile, according to fintech companies surveyed by the IDB, the main challenges they face are scalability (41%) and access to funding (19%).
In summary, while card issuance may seem like a challenging task, platforms like Inswitch Issuing and Processing help businesses overcome regulatory, operational, and cost barriers. With a proprietary BIN and an all-in-one platform covering everything from issuance to transaction authorization, Inswitch not only simplifies fintech service integration but also provides companies with the tools they need to scale efficiently and competitively. This enables businesses to enhance customer experience, offer more agile financial solutions, and meet the highest security and regulatory standards.
Take Control of Your Card Issuance with Inswitch
Expanding your financial services with card issuance no longer has to be complex, costly, or time-consuming. Whether you need a full BIN issuance solution, a flexible processing model, or seamless API integration, Inswitch provides the fastest, most scalable, and cost-effective path to launching your own branded cards. Reduce dependency on intermediaries, accelerate time to market, and enhance customer experience—all from a single, secure platform.
Ready to launch your own card program? Contact Inswitch today and discover how we can help you scale your financial services with speed and efficiency.
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