2025 BaaS Rating:
Top BaaS Providers
This guide explains how BaaS works, highlights the leading BaaS platforms for 2025, and outlines the key advantages, potential challenges, and selection criteria to help you choose the right provider for your business. Whether you're a fintech startup, an established business, or a non-financial company looking to integrate wallet services, this guide will equip you with the knowledge needed to navigate the world of BaaS effectively.
Author: Kate Podgaiskaya
Last updated August 15, 2025
Contents
Introduction to the 2025 Banking-as-a-Service Landscape
Banking-as-a-Service (BaaS) allows companies to deliver financial products, such as accounts, cards, and payments, by integrating with licensed banks via APIs. In 2025, the market is driven by compliance demands, faster product launches, and embedded finance growth. Velmie offers modular platform and access to BaaS providers network that help businesses build scalable, regulation-ready solutions without owning banking infrastructure.
What is Banking as a Service (BaaS)? How does BaaS work?
Banking-as-a-Service is a model where licensed banks provide their infrastructure through APIs, enabling non-bank businesses to offer financial services. BaaS enables third-party entities to provide seamless full-banking services directly through their own non-bank business offerings without the need to obtain a full banking license. Embedded bank services include Fintech payments and getting product financing, loans, and credit cards through a seller’s website.
How Does BaaS Work?
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A company integrates with a BaaS platform.
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The platform connects to partner banks.
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Customers access financial products under the company’s brand, while the bank handles compliance and core banking operations.
Understanding Banking as a Service (BaaS) requires knowing basic concepts and where it’s used. The foundation of BaaS is an Application Program Interface (API) software link between banks and non-banks, including fintech firms, enabling businesses to integrate various financial functionalities into their platforms. These services may include account creation, payments processing, lending, compliance, and more. BaaS essentially acts as a bridge between traditional banking services and innovative digital platforms. To obtain financial services such as loans, payment processing, product financing, credit cards, or digital wallets, the user doesn’t need to visit different banks’ websites. The financial services provided by the embedded BaaS can be co-branded or implemented as white-label banking, which hides the branding of the bank.
In the BaaS model, there are several key players involved in the value chain:
Providers
BaaS providers are the licensed banks that offer their banking services to non-bank businesses through APIs. These can be traditional banks or challenger banks.
Distributor aggregators
Distributor aggregators are companies that work with BaaS aggregators to distribute the BaaS offering to a wide range of non-bank businesses.
Aggregators
BaaS aggregators are companies that bring together the services of multiple BaaS providers and offer them to non-bank businesses as a single solution.
Distributors
Distributors are companies that offer BaaS services to their customers on behalf of BaaS providers or aggregators.
Role of BaaS in the modern financial industry
BaaS offers new clients and expanded revenue streams for traditional banks. Launching new small businesses with significant growth potential, innovative products, and business models is a specialty of fintech firms and other BaaS experience providers.
BaaS driving banks to digitize and modernize. Banks are modernizing their outdated banking systems. To integrate financial services and financial goods into numerous businesses, bank technology must function in BaaS. Customers now have access to a wider variety of high-quality banking applications thanks to BaaS partners.
Banking as a Service is being quickly embraced by businesses. They come in a variety of sizes, from start-ups and small businesses to Fortune 500 corporations. These companies provide their consumer base with quick access to embedded financial services and banking products as a direct result of BaaS.
Benefits of BaaS for businesses:
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Accelerated time-to-market: BaaS eliminates the need to build banking infrastructure from scratch, allowing businesses to launch financial products and services faster.
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Cost savings and reduced complexity: BaaS providers handle regulatory compliance and backend operations, reducing operational costs and complexities.
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Enhanced customer experience: BaaS empowers businesses to offer seamless financial experiences, leading to higher customer satisfaction.
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Access to banking infrastructure: non-financial companies can integrate financial services without navigating complex regulatory requirements.
Use Cases for BaaS:
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Fintech startups (payments, card-issuing, investments): BaaS enables startups to focus on innovation and customer experience without the burden of developing complex banking systems.
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Neo- or challenger banks - organizations that are often digital-only with no physical branches.
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Established businesses: traditional companies looking to diversify into financial services can leverage BaaS to enter the market swiftly.
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Non-financial companies: retailers, e-commerce platforms, and other non-financial entities can integrate payment and lending services seamlessly.
BaaS seamlessly provides essential services and financial products to customers, contributing substantially to economic growth.
BaaS Market Trends and Innovations to Watch in 2025
The Banking-as-a-Service (BaaS) market has experienced rapid expansion in recent years and is projected to continue its upward trajectory.
Key 2025 BaaS trends include:
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Embedded finance growth across e-commerce, SaaS, and retail.
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AI-driven compliance tools for faster onboarding and fraud detection.
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Cross-border payment capabilities integrated into BaaS platforms.
These shifts push providers to expand APIs, enhance security, and support broader regulatory coverage in multiple markets.
According to Research and Markets, In 2024, the market is valued at $716 billion and was expected to reach $842.44 billion by 2025, reflecting a strong compound annual growth rate (CAGR) of 17.7%. This growth has been fueled by several key factors, including the surging demand for digital banking, the growing need for tailored financial services, the rise of embedded finance, increasing globalization and cross-border trade, as well as evolving regulatory landscapes.
This growth trajectory positions BaaS as a pivotal component of strategic agendas across various industries, not just banking. The integration of financial services into customer experiences is a game-changer, enabling industries to develop new propositions.
The adoption of BaaS is primarily driven by the rise of embedded finance, which seamlessly integrates financial services into non-financial platforms. Retail banking remains a core focus, with significant growth observed in Point-of-Sale (PoS) financing. Additionally, small business lending through BaaS is on the rise, with projected annual revenue growth of 30% .
In 2025 the BaaS landscape is witnessing several notable trends:
- Global expansion: BaaS providers are expanding their services across geographical borders, enabling businesses to offer financial products internationally.
- Focus on compliance: Heightened regulatory scrutiny has led to BaaS providers placing greater emphasis on robust compliance procedures.
- Adoption of BaaS in many industries: BaaS has revolutionized how businesses across sectors offer financial services, empowering them to enhance customer experiences, streamline operations, and drive innovation. Among the sectors that adopted BaaS are neobanks, e-commerce, travel and hospitality, healthcare and insurtech, real estate and investments.
- Integration of advanced technologies: AI, blockchain, and data analytics are being integrated into BaaS offerings, enhancing security and efficiency.
- Ecosystem partnerships: BaaS providers might forge partnerships with fintech startups, established financial institutions, and other technology companies to create comprehensive financial ecosystems. This collaboration could offer users a wide range of integrated services under one platform.
Top 15 BaaS Providers in 2025
The leading Banking-as-a-Service (BaaS) providers offer API-based infrastructure that enables companies to deliver financial services—such as accounts, payments, and cards—without holding a banking license. In 2025, these platforms vary in geographic coverage, compliance capabilities, product scope, and integration speed. The list below includes both global and regional players, giving businesses flexibility to match target markets and regulatory requirements.
A BaaS provider is typically a fintech company or other third-party entity that integrates licensed banking services into a client’s products and platforms via APIs. Acting as intermediaries, BaaS providers allow businesses to offer a wide range of financial functionalities without building and maintaining a full banking system or securing their own license. They manage regulatory compliance, backend operations, and other complex processes, enabling companies to focus on product innovation and customer experience.
In 2025, the BaaS market features a diverse set of providers. Below are the top 15 BaaS platforms worldwide to consider.
(UK) Founded in 2009, Unlimit provides fast-growing innovative businesses with a constantly evolving financial interface, made by innovators for innovators, and designed to make the financial world of tomorrow closer to businesses here and now.
(UK) ClearBank was built on the belief that banking infrastructure would no longer slow down progress. Instead, it would be the catalyst that unlocks the potential to innovate. It would adapt to cater to different needs so a new era in financial services could begin.
(France) Treezor is a Paris-based banking platform as a service, a “one-stop-shop payment solution.” Recently acquired by the Societe Generale group due to their innovative expertise, the startup is accredited to provide its clients with personalized payment services. Acquiring, digital wallets, virtual and physical card products—nothing’s off the menu.
(Lithuania) ConnectPay is one of the fastest growing EMI companies in Europe, ConnectPay offers an all-in-one financial platform. With extensive functionality, the platform is able to be integrated into various online business, thus removing the need for companies to rely on multiple financial solutions and providers. ConnectPay is licensed and regulated by the Bank of Lithuania and is subject to the regulatory framework of the European Central Bank.
(Sweden) Intergiro is a Swedish fintech company licensed and registered as an electronic money institution with the Swedish Financial Supervisory Authority (Sw. Finansinspektionen) with the authority to issue electronic money and to provide payment services.
(UK) Finastra is a financial software company headquartered in London, England. The company offers a portfolio of products and solutions to the retail banking, transaction banking, lending, and treasury capital markets.
(Lithuania) Bankera is an international payment services business, offering solutions to individuals and companies. It is built with a focus on digital businesses; hence it welcomes clients from various digital industries such as affiliate marketing, eCommerce, gambling, cryptocurrency exchanges, P2P finance and others. Bank account alternative solution offers personal and business payment accounts with dedicated IBANs as well as private and corporate VISA cards. Currently, it supports SEPA and SWIFT transfers. Later the offering will expand to include mobile wallets and more.
(USA) The Green Dot Corporation is an American financial technology and bank holding company headquartered in Austin, Texas. It is the world's largest prepaid debit card company by market capitalization. Green Dot is also a payments platform company and is the technology platform used by Apple Cash, Uber, and Intuit.
(USA) Synctera’s platform gives companies of all sizes the technology infrastructure, sponsor bank connection, and compliance framework they need to launch FinTech or embedded banking products. With a single set of powerful APIs, companies are able to quickly launch and scale products such as debit cards, bank accounts, charge cards, lines of credit, and money movement.
(Germany) Solarisbank is a tech company with a full German banking license, including a Digital Assets Custody license, an e-money license – covering the UK and EEA – and a UK consumer credit license.
(USA) Mbanq is a global provider of cloud banking technology. They are headquartered in North America with additional offices in Europe and Asia.
(USA) Headquartered in Austin, Texas and part of the Q2 family, Helix gives innovative fintechs and brands the building blocks of banking — accounts, cards, payments, data and controls, admin tools, and monetization solutions — to make it easy to embed personalized financial experiences that easily integrate and scale.
(China) OneConnect is a technology-as-a-service platform for financial institutions. The Company was listed on the New York Stock Exchange in 2019. OneConnect is an associate of Ping An Group.
(USA) Solid is a modern fintech infrastructure provider – a one-stop shop that offers a fully integrated and compliant suite of fintech services.
(Brazil) Nubank is a neobank and the largest fintech bank in Latin America. Its headquarters are located in São Paulo, Brazil.
How to Choose the Best BaaS Provider for Your Business?
When selecting a BaaS provider, consider the following factors:
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Regulatory compliance: Most governments demand that anyone who wants to provide financial services has a banking or e-money license. Financial license acquisition is a time-consuming and expensive process. It is crucial that you verify that the BaaS provider you select has a strong compliance program and is up-to-date with all regulatory requirements. You can start your own financial service and use the banking or EMI license of many providers. Some providers, however, are constructed on top of other third-party licensed organizations, which can lead to unforeseen modifications to unanticipated changes in risk policy and extra expenses. Evaluate their data protection measures, AML, and KYC procedures.
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Customization and flexibility: Look for providers that offer customization options to tailor services to your business model.
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Pricing structure: Understand the provider's fee structure, additional costs, and scalability expenses. But don’t just look at the price - above all, learn what features are included and if are there any hidden costs. Make sure you understand all the costs before making a decision.
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Support and customer service: Check the provider's responsiveness, availability, and troubleshooting support.
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Technology stack is another key point when choosing a BaaS provider. Assess the provider's API capabilities, scalability, and security protocols. Ensure compatibility and ease of integration with your existing systems. Look for a provider that is investing in the future. Look at their roadmap and decide if it matches your business plans and vision.
Checklist of core BaaS features
When evaluating BaaS providers, it's essential to ensure that they offer a comprehensive set of features to meet your business needs. Here's a checklist of critical BaaS features to consider:
1. Account management:
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API access for account creation, management, and closure
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Support for different account types (individual/business/joint, savings, checking, multiple bank- or business-based accounts) and manage multiple expense cards out of a single account.
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Real-time balance and transaction information
2. Real-time payments (RTP) and transactions:
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Payment initiation and processing APIs (local and international)
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Real-time fund transfers and transaction tracking
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Integration with payment networks (ACH, SWIFT, SEPA, etc.)
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Payment status notifications and alerts
3. Card issuance and management:
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API access for card issuance and management (credit/debit, virtual/physical cards)
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Customizable card design and branding options
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Transaction history and card spending insights
4. Compliance and security:
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Anti-Money Laundering (AML) and Know Your Customer (KYC) verification APIs
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Identity verification and document authentication services
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Multi-factor authentication (MFA) for secure access
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Data encryption and protection measures
5. Lending and credit services:
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Loan origination and underwriting APIs
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Credit scoring and risk assessment tools
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Loan application status trackingIntegration with credit bureaus and scoring agencies
6. Regulatory and legal support:
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APIs for compliance with financial regulations and reporting requirements
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Support for tax reporting, regulatory filings, and audits
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Documentation and reporting for Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) compliance
7. Currency exchange and forex services:
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Real-time currency conversion rates and APIs
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Foreign exchange (Forex) APIs for international transactions
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Integration with global payment systems for cross-border payments
8. Analytics and reporting:
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Access to transaction data and financial insights
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Reporting and analytics APIs for monitoring financial activities
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Customizable dashboards and data visualization tools
9. Customization and branding:
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White-label options to brand the BaaS platform under your business identity
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Customizable user interfaces and user experiences
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Flexibility to tailor financial services to your target audience
10. Developer resources and support:
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Comprehensive API documentation and developer resources
11. Integration and compatibility:
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Compatibility with your existing technology stack and systems
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Flexibility to integrate with third-party applications and services
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API versioning and updates to ensure seamless integration over time
12. Regulatory compliance:
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Adherence to industry regulations and standards (e.g., PSD2, GDPR)
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Documentation and transparency for regulatory audits
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Regular compliance assessments and updates
Common BaaS Challenges and How to Overcome Them
BaaS adoption can face challenges such as regulatory compliance, integration complexity, and dependency on third-party platforms. To overcome these, businesses should:
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Choose providers with strong compliance and security measures.
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Use scalable, API-driven platforms for easier integration.
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Maintain monitoring and contingency plans for service disruptions.
Providers like Velmie support these measures with ready-to-use, regulation-compliant solutions.
BaaS and other API-driven technologies are gaining prominence among financial organizations due to its numerous advantages. These benefits include rapid time-to-market and reduced operating costs. However, while API solutions and cloud-based BaaS offer substantial advantages, they do not address all the challenges faced by both traditional banks and non-bank entities aiming to establish embedded banking offerings.
Some of the other issues that make BaaS offerings unattractive for building new products are:
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Lack of flexibility. Most BaaS platforms are being distributed "as is," and customers should not expect any customizations to be made. While many BaaS solutions on the market cover many types of businesses and use cases, many businesses still require more attention than BaaS vendors can give.
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Lack of geographic coverage. Expanding into the global market is a common goal for numerous fintechs. However, few BaaS providers can offer the required geographic coverage.
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Pricing structure: Understand the provider's fee structure, additional costs, and scalability expenses. But don’t just look at the price - above all, learn what features are included and if are there any hidden costs. Make sure you understand all the costs before making a decision.
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Support and customer service: Check the provider's responsiveness, availability, and troubleshooting support.
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Technology stack is another key point when choosing a BaaS provider. Assess the provider's API capabilities, scalability, and security protocols. Ensure compatibility and ease of integration with your existing systems. Look for a provider that is investing in the future. Look at their roadmap and decide if it matches your business plans and vision.
How to overcome the challenges?
Velmie seeks to address these BaaS disadvantages by offering a next-generation banking software solution with unique attributes:
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Modular approach, based on microservices architecture, ensures greater flexibility because modules can be customized and configured independently for each customer.
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Ecosystem. Velmie has built up an extensive network of partners and integrations, allowing banking solutions to be configured for all local markets.
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Data security. The software is usually based on single-tenant systems, with no shared resources between different customers. Different customers' data is kept independently, which means that if one customer's data is breached, other customers' will not be compromised. It also allows user experiences to be customized.
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IP ownership. Customers have more control and flexibility over managing and expanding their business because Velmie shares the IP rights with the client.
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End-to-end delivery. Customers don't have to gain expertise and resources required for system integration and support as it all handled by Velmie.
While BaaS holds significant potential for banks and their non-bank collaborators, the long-term success of the offering dependes on the sustainability, scalability, and flexibility of the digital banking platform. What may appear cost-effective now could potentially lead to higher expenses in the future. Hence, prudent selection is crucial to ensure your system delivers the superior financial services and customer experience you seek.
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FAQ
Q1: How to integrate a Banking-as-a-Service platform into an existing product?
A: Integration starts with selecting a BaaS provider offering API documentation, sandbox environments, and SDKs. Connect core modules - such as accounts, payments, or cards - via secure APIs, then test for compliance and performance. Velmie supports staged integration with developer tools and dedicated onboarding teams for faster go-live.
Contact us to discuss - www.velmie.com/contact
Q2: How to launch a fintech product using BaaS in 2025?
A: Define your product scope, ensure licensing compliance (either directly or via your provider), integrate APIs for core banking functions, and set up KYC/AML workflows. Velmie offers solutions to launh your fintech product using integrations of our BaaS partners in weeks, not months.
Explore more - www.velmie.com/partner-ecosystem
Q3: How to scale a BaaS-powered product across multiple regions?
A: Choose a provider with multi-currency support, regional licensing coverage, and adaptable compliance modules. Velmie’s architecture and wide partner ecosystem enable cross-border expansion with localized onboarding and payment rails. Learn more at www.velmie.com/why-velmie
Q4: What features should a BaaS platform include for fintech growth?
A: Core features include: Digital onboarding and KYC automation API-driven accounts, payments, and card issuing Fraud prevention and risk management tools Scalability for user growth Velmie delivers these as configurable modules for fast deployment. Book a demo to learn more - www.velmie.com/contact
Q5: How to reduce vendor dependency risks in BaaS?
A: Use providers with open API standards, exportable data formats, and clear SLAs. Velmie offers flexible integration models so businesses can maintain control over their core data and services.
Q6: How to integrate card issuing with a BaaS platform?
A: Connect to card network APIs via your BaaS provider for virtual and physical card issuance. Velmie supports white-label card programs, including Apple Pay and Google Wallet integration.
Talk to an expert - www.velmie.com/contact
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