TLDR
Learn what BIN sponsorship is, how it enables PSPs and fintechs to issue payment cards without direct card scheme membership, and why it's a common path to launching card programmes.
What is BIN sponsorship?
BIN sponsorship is a business arrangement in which a licensed card issuer or payment institution allows another company to issue payment cards under its bank identification number (BIN). It gives fintechs, payment service providers (PSPs), and other payment businesses access to card network infrastructure without becoming a direct Visa or Mastercard member themselves.
How BIN sponsorship works
A BIN sponsor is a regulated financial institution that already has membership with card schemes such as Visa or Mastercard. The sponsor provides access to its BINs while the sponsored company manages customer-facing services, such as card issuance, onboarding, and program management.
The BIN sponsor remains responsible for regulatory compliance, scheme obligations, and settlement with the card networks, while the sponsored company focuses on delivering its card product.
Why businesses use BIN sponsorship
BIN sponsorship helps companies launch card programs much faster than obtaining their own scheme membership or banking license. It is commonly used by:
- Fintech companies launching debit, prepaid, or virtual cards
- PSPs expanding into card issuing
- Embedded finance platforms
- Digital wallets and expense management platforms
BIN sponsorship vs. direct card scheme membership
The main difference is ownership of the BIN and scheme relationship.
- BIN sponsorship: uses a sponsor's BIN, is faster to launch, has a lower upfront investment, and the sponsor handles scheme responsibilities.
- Direct membership: uses the company's own BIN, has a longer approval process, higher regulatory and operational requirements, and the company manages its own relationship with Visa or Mastercard.
For payment businesses, BIN sponsorship provides a practical route into the card ecosystem. Instead of spending years obtaining licenses and card scheme membership, a PSP can partner with a BIN sponsor and begin offering card products while concentrating on merchant acquisition, customer experience, and product development.
Related terms
Go deeper
- Blog post
How do payment processors make money? A revenue model breakdown
Model-by-model economics of operating under a sponsor bank versus holding a principal scheme membership and your own BIN.
- Blog post
Licensing paths to launch a payment business: EMI, PI, and agent models
EMI, PI and agent licensing paths, and the relationships a licence does not grant you, BIN sponsorship among them.