Video: What are fleet cards and how are they evolving?

Walter Van Huyck, OpenWay’s Fleet Solution Expert explains how fleet cards can become generators of new revenue in the near future. 

What challenges are faced by fleet card processors today?

Walter: In many countries, fleet card processing relies on quite outdated systems. Most of them even have not gone to contactless or chip. They are magstripe based and are revolving in a world where we have mobile payments, mobility and so forth. So for processors at the moment, the next step is that fleet cards will evolve from magstripe cards to mobile cards, wallets and things like that. But not too many companies are there yet. Together with our experience in banking and fuel cards, OpenWay can help processors get to the mobile payments world.

What services will become revenue generators in the fleet card business?

Walter: You have two types of fleet cards. Most of fleet cards are closed-loop. This means that a company issues a card and accepts it in its own network, or a couple of other networks. So if it’s being used in its own network, there are only discounts. But with co-branded cards, there are two elements. One is the purchase of the fuel, the sales. There is serious revenue there, but that is not a new stream. The second element is mobile applications and mobile payments, where the potential revenue is huge. With mobility, electric cars, what is going to happen to fossil fuels? So this is what we need to focus on and help the fuel card business have a proper revenue in this new world, and that is where OpenWay can help our customers or potential customers.

What valuable experiences did you gain from OpenWay Club?

Walter: It’s amazing. This afternoon there was a fleet card presentation. In the time I was here, I was asked by many people: what are fleet cards? What can we do as banks and processors? So I think there is huge potential, and without OpenWay Club I would have never met these people. So both for me and for customers, OpenWay Club has been an important experience because we have had a forum to talk about these things.