BIN Sponsor Partner: What is it, and how does it enable new players in the means of payment industry?

Published on Jan 09 2023.

reading time 9 minutes reading

It is impossible to conceive financial solutions without credit cards—a consumer’s favorite product when making payments in retail. But how can they make the most of the opportunities in the credit card industry? Fintechs and businesses looking to join this industry can rely on a BIN Sponsor Partner. In this article, we’ll explain what BIN Sponsorship is and how your business can develop card-related services more quickly. Check it out!


Even with the consolidation of new means of payment - you instant payments, among them – the card market continues to expand widely in Latin America. Result of the advancement of financial inclusion and the strengthening of electronic payments, the sector has achieved consistent growth both in the number of transactions and in amounts transacted.

As evidence of that, we have the milestone of 30,5 million cards circulating in Mexico in August 2022 and a 30% growth in payments using cards in Brazil within a year (Q3 2022 vs. Q3 2021).

In other words, having an excellent credit card offering is more relevant than ever for banksfintechs and companies from different segments looking to provide financial services. And relying on a BIN Sponsor is key to accelerate this process. Learn more in this article!


What is BIN Sponsor?


Before we discuss the credit card offering for your audiences and how easy this process is by relying on a partner, did you know what a BIN Sponsor is?

In the financial universe, BIN is the acronym for Banking Identification Number, used to name the first card number of credit and that identify who is the institution responsible for issuing it - which will then be the BIN Sponsor.

In practice, this means that the BIN Sponsor Partner is the institution that already has a link with one or more card flags (such as Visa and Mastercard) and grants BINs to its customers through this partnership, simplifying the process for businesses that need a go-to-marketfaster and with lower costs, without the need to have an exclusive BIN.


How does a BIN Sponsorship contribute to growing businesses?


So a BIN Sponsor is simply a means to drive businesses by providing card-related services, even if they’re companies taking their first steps in it or servicing a market showing lower potential (such as niche fintechs).


Learn about the main benefits in relying on a BIN Sponsor Partner:

  • Quick time-to-market: the regulatory procedure for issuing cards can take quite a while, but you can release your products within months by using a BIN Sponsor;
  • Expert experience: BIN Sponsors like Dock are companies that have extensive experience in working in the credit card industry, dealing with credit card brands and developing white-label payment platforms. It enables your business to scale from that existing, consolidated expertise;
  • Customization: relying on a BIN Sponsor partner does not impact on your brand’s look and feel for services released. The credit cards you issue via BIN Sponsor are custom.



Strategic decision: How to choose a BIN Sponsor to support your operation?


When learning about the advantages in relying on a BIN Sponsor to get your card operation up and running, it is essential to choose a partner based on some factors that make them eligible to support your operation from its first steps to its consolidation. Check out some recommendations below:

  • Technology and compatibility: Investigate whether the platform offered by the partner is compatible with your products and capable of providing the services you want to put on the market in the future and whether it has an ecosystem of partnerships to add relevant solutions.
  • Growth potential: another important factor to check is that if the BIN Sponsor can grow with you in order to provide more robust solutions as you expand your operations. Therefore, you avoid the hassle in changing partners at a crucial point of your journey.
  • Expert knowledge:  the BIN Sponsor you want to work with is familiar with your business niche? Are they up to speed with specific demands that might emerge among your customers? That kind of knowledge is important and can be valuable in the long run.
  • Licenses and permissions: before deciding on a BIN Sponsor Partner, you should check if they have all licenses and permissions required nationally and globally to operate as your intermediary party.



Internal funding vs. Third-party funding: how does it work in a card operation?


From the understanding of what BIN Sponsor and BIN Sponsor Partner is, when launching your operation, it is also important to know the two Funding strategies that exist in the ecosystem of cards currently:


Internal funding (BIN Sponsor)


In this model, a bank, fintech or company offering cards for their customers chooses to fund their own operation and have a direct contract with a card brand, thus taking over all responsibilities towards them.

In this mode, the company provides the entire capital to meet their cash needs for financial flow and funding/credit operations. Therefore, the entire product revenue (including compensations such as exchange fees, cash flow optimization and credit revenue) is part of the funding entity’s responsibilities.

And when is Own Funding worth it? For all the demand for a relationship with the brand and the time to sign this contract, this is an option that is usually adopted only by the big companies. payment institutions, which have a large volume of issued cards.


Third-party funding (BIN Sponsor Partner)


In this funding model, your business and your partner share compensation and funding responsibilities. Learn more below:

  • The financial risk for operations, including credit risk, is part of your company’s responsibilities.
  • The capital required and credit risk are part of your BIN Sponsor’s responsibilities.
  • Your company is responsible for the relationship with users and the availability of the credit card product.
  • Product configurations are set by your BIN Sponsor, including setting fees, limits and billing flow.


BIN Sponsor and our Credit Card as a Service at Dock


We’ve clarified some of the most important questions on BIN Sponsorship, but it’s also worth mentioning that Dock also relies on BIN Sponsorship solutions for companies and players of all sizes and from different segments that are interested in going beyond with their business.

By leveraging our Credit Card as a Service solution—which is part of our complete payment and banking platform—we offer credit card products for players that don’t have the required infrastructure, licenses or budget to work directly in the regulatory industry for credit card brands.


Want to learn more about what moves us in growing the financial universe? Watch our video manifest:  


BIN Sponsorship: Takeaways from this article


  • BIN Sponsors are payment-focused companies enabling other businesses (such as fintechs) to offer credit card solutions for their customers in a streamlined manner and at lower costs through their relationship with credit card brands.
  • In a BIN Sponsorship, a player turns to a payment solution provider operating in the industry as a financial institution that is regulated to issue a BIN.
  • A BIN Sponsor works as an intermediary party between your company and credit card brands: by using it, you can process payments and offer a credit card.
  • When choosing a BIN Sponsor, check if they have all permissions and licenses required to operate and if they can offer the products you’re interested in.


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