When the first payment card appeared in-store on a J-hook, it was a revelation in card distribution. For the first time, obtaining a card was, from the consumer’s point of view, decoupled from a bank or credit card company. You got your card at a retail location—a grocery or convenience store, drug store or even a gas station. Today, third-party card distribution is a multi-billion-dollar business in the U.S.
What the J-hook gift card experience showed—along with consumer acceptance of challenger banks and other innovative financial companies like PayPal and our great group of fintech clients including Chime, Varo and TransferWise to name just a few—is that consumers will embrace new distribution channels and new providers if the value proposition is clear and the brand delivers on that value proposition with frictionless service that includes an amazing user experience.
As the tech behind leading fintech companies, Galileo has put our innovation engine to work to create new distribution channels for all kinds of payment cards, giving consumers new ways to obtain first-class financial services. Last year, we introduced the Galileo Securities Solution, enabling wealth managers to offer transactional products drawing on their customers’ invested assets. Just last week we launched Galileo Money+, a full-featured account with checking and wealth accumulation features that offer interest rates significantly higher than typical banks, along with low fees and FDIC insurance. And soon, we’ll introduce a way for virtually any business to issue cards quickly and economically, so small businesses can reap the benefits of their own payments cards.
New distribution channels for card-based financial products offer burgeoning opportunities for fintechs, banks, financial advisors, employers and others. Join our founder and CEO Clay Wilkes for an in-depth session about rethinking distribution channels at Card Forum’s Innovation in Cards and Payment track, May 21 at 4:15 p.m. in New Orleans. Or contact us at [email protected].