Lithic, a prominent card issuing platform, is expanding its offerings for FinTech companies in the United States by now allowing them to issue cards through the American Express (NYSE:AXP) network. This strategic move provides FinTechs a new pathway to launch debit, credit, and prepaid cards. With the integration of American Express into their platform, Lithic aims to enhance product choice for its customers. Furthermore, experts suggest that Lithic’s inclusion in the Amex network will not only be beneficial to FinTechs but also streamline the card issuance process significantly for emerging financial companies seeking a reliable network option.
Several months ago, American Express had expanded its Agile Partnership Network to optimize card issuance for both credit and debit programs. These efforts were aimed to assist companies, like Marqeta, in leveraging its partnership platform, opening more opportunities for FinTech sectors. This previous move reflects the continuous growth and adaptations within the financial technology industry, demonstrating a broadened focus towards inclusive and varied payment solutions.
What Does Lithic’s Expansion Mean for FinTechs?
FinTech companies can now extend their service offerings due to Lithic’s integration with American Express. This integration provides ease of access to diversified financial products, allowing businesses to tailor offerings to better fit client needs. According to Lithic CEO Bo Jiang, customers will see increased value through this differentiated product choice.
How Does American Express Benefit?
American Express, through its partnership with Lithic, ensures a seamless and versatile platform for FinTechs looking to innovate. As Will Stredwick from American Express noted, these collaborations are part of Amex’s ongoing strategy to deliver innovative solutions to a growing customer base.
Lithic’s robust API facilitates the creation and configuration of virtual cards into business operations, enabling a broad spectrum of applications from insurance claim disbursements to the facilitation of travel-related purchases. This simplification and automation of financial processes appeal strongly to companies that don’t traditionally operate as card and payment entities, extending their capabilities more efficiently.
Echoing Lithic’s strategy, Marqeta, another card issuing platform, recently highlighted the advantages of the American Express Agile Partnership. Focused on broadening card program options, Marqeta’s interim CEO Mike Milotich emphasized how FinTech and embedded finance partners will benefit from increased choices and flexibility.
The strengthening collaboration between such platforms and credit networks signifies the growth trajectory of financial technology solutions within the sector. As FinTechs continue to evolve, their integration with traditional financial networks facilitates innovations, driving efficiency and variety in the financial products space.
Experts within the industry indicate that these expanded capabilities yield comprehensive benefits for emerging and established financial businesses. By tapping into established networks such as American Express, FinTechs can advance towards a more agile and diversified market presence.
