For companies seeking to expand their product offering and overcome the operational challenges of traditional business models, LatCard proposes new generation gift card solution – a controlled loop MasterCard prepaid gift card.
Controlled Loop Cards, also known as semi-open loop or restricted loop cards. This cards utilize the open payment network (MasterCard) for redemption, but at the same time redemption is restricted only to selected merchants.
Many companies still rely on paper-based coupon solutions because of the challenges and costs they face in implementation closed loop gift card schemes. But LatCard proposes the Solution – Controlled loop cards are the ideal for:
Controlled loop cards allows flexibility in product design and functionality, meaning that you can bring the card to life with your corporate branding and tailor your program to the way you want it to work.
Retailer do not need to invest in connectivity – LatCard AS will manage all technology. At the same time, customer would have full access to his data, so he can see what happening any time.
|Network||Private card||Controlled loop MasterCard|
|Acceptance||Restricted to retailers that have been set up as part of the network. Cards can be redeemed at all participating retailers||Available at all places connected to MasterCard, but restricted only to necessary merchants.|
|Connectivity||You need to build acceptance network and overcome technical and legal challenges||A "white list" of retailers is formed over established MasterCard network. All retailers accepting MasterCard already ready to participate|
|Branding||Own brand that need additional marketing efforts to promote||Your brand powered with MasterCard brand|
|Settlement||You need to set-up your own clearing and settlement cycle||MasterCard clearing and settlement process|
|Compliance||Need to explain scheme to local financial authority. May require licensing.||Straight-forward process with established product.|
|Speed to market||Legal and technical connectivity solutions may require increased time to market||Fastest route to market. No technical and legal problems.|
|Set-up||Low card fee, high connectivity fee for every retailer.||Higher card fee, no connectivity fee.|