December 30, 2025
Even though few people realize it, there is an invisible technology that makes it possible for an application or a digital store to launch and manage cards with its own brand. It is the infrastructure of the Banking as a Service (BaaS) model that enables this, connecting banks, card networks, fintechs, and companies from various sectors to offer innovative – and secure – financial experiences.
To understand how a card, whether physical or virtual, is created solely from an app, a website, or a new financial product, it is important to delve deep into the operation. See how it works, what the stages, partners, and technologies involved are, and how Azify positions itself as a protagonist in this new landscape.
What is banking as a service (BaaS)?
BaaS is a model of integration via APIs that allows companies, even those that are not financial institutions, to offer and operate complete banking solutions. Without the need to take on the heavy part of the process: regulation, back office, transaction processing, or 24/7 support.
All of this happens because financial services are delivered as pluggable APIs, which integrate the company into a ready, secure, and scalable banking infrastructure.In other words, in BaaS, products like accounts, cards, payments, and investments are delivered via technological integrations, not as conventional banking services.
This architecture makes it possible for companies without a history in the financial sector to launch cards and other products, focusing their efforts on what really matters: the customer experience. We delve deeper into this concept in the article Understand the concept of Banking as a Service in Brazil.
How does BaaS facilitate the issuance of cards?
Until recently, only large banks and financial institutions were able to facilitate the issuance of credit or debit cards on a large scale. The process was time-consuming, dependent on high investment in technology, regulation, processes, and agreements with brands like Visa or Mastercard. With the arrival of technological infrastructure platforms, this scenario has changed completely.
Operations are centralized in APIs and platforms that already handle communication with banks, processors, and brands.
APIs do what previously required years of development and multiple integrations.
Compliance and back office are embedded from the beginning of the flow.
The time to create, issue, and operate cards with the company’s own brand drops from years to weeks.
Today, companies can create anything from prepaid and benefits cards to corporate credits or innovative products, without the pains and risks of direct regulation. The secret lies precisely in the invisible infrastructure of partners like Azify.
What are the roles and responsibilities of the participants?
The issuance of cards through cloud-based technological infrastructure depends on a chain with well-defined roles. Each company focuses on its specialty, forming a consistent and reliable network. Meet the main participants:
Sponsoring financial institution (BIN sponsor): Bank or institution licensed by the card network. It is the one that effectively connects the card network, payment networks, and the fintech or partner company. It "lends" its regulatory seal so that the issuance occurs under its supervision.
Processor: Responsible for the operational infrastructure that "brings the card to life" – creates, activates, processes, closes billing, and routes transactions to the card networks.
Technology/infratech company: Provider of the APIs, integrations, and platforms that connect the ends. Azify, for example, takes care of the entire journey, from onboarding to card management, compliance, reporting, and support.
Card network: International acceptance network (such as Visa or Mastercard) responsible for ensuring that the card will be accepted at thousands of establishments and ATMs.
Partner company or fintech: The one that puts its brand in front of the product, maintains the relationship with the end customer, defines usage rules, benefits, etc.
The modular model allows each point in the chain to be replaced, updated, or adapted without impacting the user experience. This flexibility is what drives innovation in cards in Brazil and around the world.
Operational flow: from card creation to transaction processing at Azify
Understanding the complete journey of the card shows why the API infrastructure is so valuable. See each step:
Registration and KYC (Know Your Customer) – The customer initiates the request for a card through the app, website, or partner platform. Azify's system automatically performs the KYC: validates data, queries official databases, assesses sanctions, and approves or rejects the request according to the embedded compliance rules.
Issuance – After approval, the card is issued digitally (virtual), physically, or both. For physical cards, the system already triggers approved suppliers for production and shipping, without the company needing to deal with multiple contracts.
Activation and customization – Activation can be instantaneous (for virtual or digital cards) via the app. Functions such as blocking, limit adjustment, notifications, and a second copy can be controlled by APIs in real-time.
Transaction processing – When the customer makes a purchase, the request goes through the processor and is forwarded to the sponsoring financial institution, which validates limits, balances, fraud prevention rules, and authorizes or denies the transaction. Everything happens in milliseconds, following the rules of the card brand.
Management and monitoring – Detailed reports, usage tracking, revenue, delinquencies, blocks, and disputes are accessed via APIs and dashboards of the infrastructure. Continuous compliance ensures that regulatory changes are monitored automatically.
This flow shows how Azify, even though it is not a bank, can empower digital banks, fintechs, brokers, and even retailers looking to launch their own card, without worrying about layers of banking complexity.
What are the advantages of the modular model and plugable APIs?
Creating a custom card using a complete platform is not just a matter of convenience. The impact goes beyond, take a look:
Agility to launch products: several companies are able to go from concept to active card in weeks, without compromising the experience or regulation.
Customization with savings: it is possible to create corporate cards, co-branded cards, benefits, or innovations like cashback and parental control, without reinventing the wheel.
Automatic compliance: compliance by design, ensured by Azify, guarantees that each transaction follows the Central Bank's rules and those of the card networks automatically, reducing risks of fines or disqualification.
Scalability and global support: it serves both companies that want a few thousand cards and operations with millions, thanks to the robustness and stability inherited from the Azimut Group.
End-to-end security: sensitive data is protected by encryption, strong authentication, and 24/7 monitoring, reducing risks of fraud or leakage.
Well-designed APIs reduce integration time, increase stability, and allow for innovation with less fear of making mistakes.
For those interested in the details of APIs in financial operations, the content BaaS APIs provides clear explanations about integrations, webhooks, and best practices.
The modular model reduces dependency, enables partnerships, and accelerates innovation in payment methods in Brazil. It is like connecting a “ready-made bank” to the brand, allowing focus on what makes sense for the end audience.
On Azify's blog, the article BaaS and fintechs shows real examples and product formats enabled by this invisible infrastructure.
Issue cards with built-in compliance and scalability with Azify
To launch, issue, and operate customized cards, companies need the right partner, one that offers end-to-end operations, stable technology, easy-to-integrate APIs, and everyday real support.
Azify stands out precisely in this: it delivers ready-to-run technological and operational infrastructure, with embedded compliance and international protection, without your company needing to become a bank. This allows the freedom to create proprietary products, expand revenues, and serve customers quickly, without surprises or regulatory risks.
Access our BaaS page or read how to evaluate BaaS providers in Brazil to understand how to take your project from zero to an active and successful card. Freedom to innovate in payment methods only exists when compliance and technology walk hand in hand.
In conclusion, issuing cards through Banking as a Service is not just a trend, but a reality accessible to businesses of all sizes in Brazil. Forgoing the construction of all banking infrastructure allows companies to launch their own cards quickly and securely, without sacrificing customization and customer experience.
Azify has distinguished itself by offering not only technology but also ready processes, know-how, and support, making this task fluid for both digital banks and retailers, brokers, and fintechs. Embedded compliance, global security, and scalability are advantages that only large institutions could access before.
Do you want to launch your own physical or digital card, securely, at scale, and within Brazilian regulations? Discover Azify's invisible and ready-to-scale infrastructure right now.
Frequently asked questions about issuing cards via Banking as a Service
What is Banking as a Service?
Banking as a Service, or BaaS, is a technological solution that allows companies from any segment to offer their own financial products through digital integrations, without being traditional banks. In BaaS, all the complexity of the back end, regulation, processing, compliance, and brand service is centralized in platform providers, offering agility and cost reduction for those looking to launch solutions like accounts, cards, and payments.
How does BaaS card issuance work?
In the BaaS model, card issuance occurs in partnership with a licensed financial institution and infrastructure provider like Azify. They manage the integration with the networks and processors, coordinate customer onboarding (KYC), execute physical or digital card issuance, and ensure that the entire operation is compliant with market standards. All of this is done via APIs, reducing the time and complexity of the launch.
What are the advantages of BaaS for cards?
The main advantages include: speed to market, customization of the experience, reduction of costs with regulation and technology, flexibility to create innovative models, and automation of compliance. Additionally, scalability is nearly unlimited, as the architectures are designed to handle everything from small operations to large digital banks.
Is it safe to issue cards via BaaS?
Yes, issuing cards via BaaS is safe because the modern infrastructure includes encryption, access control, monitoring, and strict fraud prevention policies. Serious providers like Azify incorporate compliance from the outset, quickly adapting to new regulatory demands and protecting the company against operational risks and cyberattacks.
How much does it cost to issue cards with BaaS?
Costs vary according to the volume of cards, desired integrations, product customization, and type of compliance management. There are usually fees for issuance, monthly maintenance, and for the use of APIs. However, prices tend to be lower than independent structuring, as there are economies of scale, standardization, and automation at all stages, enabling competitive offers without hidden cost surprises.
