Traditionally, software companies bundled card issuance with spend management platforms as an integrated solution. However, the industry is evolving toward separating these components to enable greater flexibility and innovation.
Card Issuance and the Revenue Impact
Card programs generate substantial margins of 250-280 basis points per transaction, making them critical to business models. Beyond financial returns, card issuance provides an invaluable resource: real-time insights into spending behavior.
Real-time data enables finance leaders to manage expenses efficiently and capture receipts at the moment of purchase rather than accumulating them for month-end reconciliation.
Companies like Astrada demonstrate that real-time transaction data can be accessed from any card, in real-time, just like a company's self-issued card. This shift toward bring-your-own-card functionality allows businesses to maintain existing card relationships while accessing modern spend management tools.
Why Bundling Still Matters
Integrated card and spend management systems offer seamless user experiences comparable to Apple's ecosystem, where hardware and software work together cohesively. However, this approach limits user choice. Some businesses prefer flexibility in card selection while benefiting from modern expense platforms.
Revenue vs Opportunity Cost
The addressable market expands significantly when spend platforms support any card option. Many organizations currently use multiple platforms — combining travel software, expense reporting, and separate cards from different providers.
Tying the expense platform and the card together often works for smaller organizations, but enterprise customers increasingly demand choice. Platforms adopting bring-your-own-card models demonstrate faster growth and increased customer satisfaction.
Decoupling allows platforms to reach mid-market and enterprise customers with established banking relationships who want modern tools without being forced to switch financial institutions.
The Hidden Costs of Running a Card Program
Card programs involve substantial operational burdens: compliance requirements, chargebacks, missed payments, and regulatory complexities. These escalating compliance costs can challenge program sustainability and divert engineering resources from core product development.
Conclusion
As regulatory environments evolve and platforms like Astrada demonstrate viable alternatives, the industry is shifting from bundled, proprietary offerings toward flexible solutions that embrace choice for businesses across all sizes.
The future belongs to platforms that can deliver real-time transaction data and spend management capabilities without requiring organizations to abandon their existing card programs and banking relationships.