Fintech startup Checkout.com is better known for its payment processing product. But the company is launching a new product today as Checkout.com customers can now create payment cards for their own customers.

The company has been testing Checkout.com Issuing for a while as there are already millions of cards that have been created with the new service. Checkout.com supports physical cards as well as virtual cards that can be used multiple times or that are automatically disabled after the first payment.

For instance, Jow has been using it. The company offers a meal planning app that creates a list of ingredients to buy for you. And Jow has been using Checkout.com Issuing to create single-use virtual cards that can be used to purchase groceries at a partner company.

Checkout.com says that its issuing product doesn’t rely as much on integrations with third-party companies compared to other fintech companies. It should give more flexibility when it comes to generating new cards on the fly.

It means that Checkout.com cards can work hands in hands with other parts of the product. For instance, customers can easily create custom rules that automate fund movements so that there is the right amount of cash behind a specific card.

Issuing also represents a business opportunity for fintech companies. When someone pays with a card, the card transaction fees are split between the merchant’s bank, the card scheme (Visa or Mastercard for example) and the card issuer (Checkout.com in that case). Checkout.com will split its portion of the interchange fees with its own clients.

“Card issuance and embedded finance has exploded over the past few years as sectors like online travel, marketplaces and digital banking use payments to stay at the heart of their customers’ financial lives. Checkout.com Issuing is built on open, flexible APIs that mean businesses can create purpose-built card programmes, enhance cash flow and unlock new revenue opportunities,” the company’s CPO Meron Colbeci said in a statement.

So who’s going to use Checkout.com Issuing? On-demand companies like DoorDash or Uber Eats rely on card issued by Marqeta and others. This way, their partners can buy groceries or food without using their own personal funds.

Many industries are also using card issuing to make instant payouts across a wide variety of merchants. As long as the merchant accepts card payments, the card can act as the payment interface. Examples include travel agencies, insurance companies, expense management platforms and more.

Checkout.com launches virtual and physical card issuing by Romain Dillet originally published on TechCrunch