How to Seamlessly Issue Cross-Border Cards in LATAM

In an increasingly globalized world, financial institutions and fintech companies seek card-issuing solutions that enable them to operate beyond geographical constraints. Yet, issuing cards for customers residing in other countries often seems complicated, filled with regulatory hurdles, compliance risks, and operational challenges.

If your company is exploring cross-border card issuance solutions in Latin America, here's how PayCaddy makes the process safe and efficient.

What Exactly is Cross-Border Card Issuance?

Cross-border card issuance enables financial institutions, fintechs, or payment companies to issue payment cards in a country different from their customers' country of residence. This capability is crucial for companies serving emerging markets, expats, international clients, or businesses operating regionally.

In LATAM, cross-border issuance has become increasingly viable due to jurisdictions like Panama, where the US dollar is legal tender, and there are no significant barriers to serving customers across different countries.

The Top 3 Challenges of Cross-Border Issuance (and how PayCaddy solves them):

1. Regulatory and Compliance Complexities

A major challenge in issuing cards internationally involves adhering to multiple local and international regulations, including:

✅ KYC (Know Your Customer) and identity verification.

✅ Fraud prevention and compliance with international sanction lists.

✅ Compliance with local financial regulators and Mastercard requirements.

🔹 How PayCaddy resolves this:

• BIN sponsorship management and clear regulatory compliance frameworks, ensuring the portfolio is compliant with AML regulations and other standards.
• Frictionless digital onboarding with integrated KYC processes.
• Infrastructure fully aligned with Mastercard’s cross-border issuance framework, simplifying expansion.

2. Technical and Operational Infrastructure

For many institutions, the challenge isn’t just issuing cards but managing them at scale securely and efficiently.

🔹 How PayCaddy resolves this:

• Neobank API platform: Automates card issuance, activation, and portfolio management processes.
• Offers both virtual and physical cards tailored to your business and market needs.
• Provides real-time support and transaction monitoring.

💡 Already have banking or fintech infrastructure? PayCaddy integrates seamlessly into your existing setup.

3. Time-to-Market and Scalability

Launch timelines are critical. Many institutions spend months (or even years) navigating approvals to launch their card programs.

🔹 How PayCaddy resolves this:

• Instant access to active BINs, avoiding lengthy approval processes.
• Direct Mastercard support through the Engage program, including potential waivers to accelerate launches.
• Quick scalability, capable of supporting up to 30K virtual cards rapidly.

🚀 With PayCaddy, you can be up and running in weeks—not months.

Why Financial Institutions Choose PayCaddy:

✅ Guaranteed compliance: Robust KYC and AML management under the supervision of Panama’s Superintendency of Banks.

✅ Scalable infrastructure: API-first integration for quick setup.

✅ USD issuance without friction: Operate in multiple countries, issuing cards seamlessly in US dollars.

✅ Expert support: Comprehensive guidance throughout your card launch process.

If your bank, fintech, or payment company is considering cross-border card issuance in LATAM, talk to our experts today. Find out how PayCaddy can help launch your card program quickly, securely, and efficiently.