European payment infrastructure provider FinXP has partnered with global issuer-processing company Thredd to expand its card issuing capabilities and support the next stage of its embedded finance business.
The partnership will allow FinXP to strengthen its debit card programmes through Thredd’s issuer-processing infrastructure. The technology will support functions including card tokenisation, digital provisioning, fraud and risk management, card controls and automated back-office processes.
FinXP will continue to manage its own ledger and determine how its card programmes are structured, while Thredd will provide the underlying processing infrastructure.
Expanding FinXP’s Card Services
FinXP has been issuing payment cards for five years and provides a range of financial services to businesses, including accounts, payments, collections, payouts and embedded finance solutions.
The new partnership is intended to help the company support more complex card programmes and expand its services across multiple markets.
FinXP works with fintech companies, platforms and businesses in regulated and underserved sectors. The company said the additional processing infrastructure will allow it to scale its card programmes while maintaining control over its own programme operations.
The partnership will also allow FinXP to act as a European BIN sponsor for customers within Thredd’s global network.
A BIN, or Bank Identification Number, identifies the institution associated with a payment card and plays an important role in card issuing and payment processing.
Focus on International Expansion
The agreement comes as demand for embedded financial services continues to grow, with businesses increasingly incorporating payments and financial products directly into their platforms.
For FinXP, strengthening its card infrastructure is part of a wider strategy to provide payment services across multiple jurisdictions.
The company said it selected Thredd following a competitive evaluation of potential providers. Factors considered included technical capabilities, responsiveness and the ability to adapt the processing infrastructure to FinXP’s existing operating model.
FinXP co-founder and CEO Jens Podewski said card issuing forms an important part of the company’s broader embedded finance strategy and that the partnership would help it support more complex use cases and enter additional markets.
Thredd Expands Partner Network
For Thredd, the agreement adds another European partner to its issuer-processing ecosystem.
Thredd provides infrastructure for financial institutions and fintech companies that want to launch and manage payment card programmes. Its platform supports functions ranging from card issuing and processing to controls and programme management.
Thredd CEO Jim McCarthy said the company aims to provide regulated institutions and fintech businesses with the infrastructure and operational support needed to develop and scale payment products.
The partnership will give Thredd’s clients access to FinXP’s European BIN sponsorship capabilities while allowing FinXP to use Thredd’s processing infrastructure for its own card programmes.
Partnership to Be Highlighted at Money20/20
The announcement comes ahead of Money20/20 Las Vegas, where representatives from both companies are expected to meet with fintechs, banks and technology platforms exploring embedded finance, card issuing and international payment services.
The partnership reflects the growing use of specialised infrastructure providers by financial companies seeking to launch payment products across multiple markets.
For FinXP, the agreement provides additional processing capabilities as it expands its card and embedded finance services. For Thredd, it adds another partner to its international issuing network and strengthens its presence in the European payments market.
Disclaimer: This article is for informational purposes only and does not constitute legal, tax, investment, financial or other professional advice.
