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Noam Braude

The Future of Payments: Unlocking Potential With Open-Loop Fleet (Credit) Card

Updated: Oct 22

Picafuel introduces a new model for fuel payments with open-loop cards, enabling retailers to have new revenue opportunities and stay ahead in the market.



In the rapidly evolving landscape of fintech and payments, seamless payment processes are crucial for maintaining operational efficiency and enhancing the user experience. In particular, energy retailers and fleet managers face the challenge of adapting to new technologies.


Traditional, closed-loop fuel cards have long been the norm, which limits use to specific brands, networks, and product categories. However, as technology advances, new advanced methods arise to manage and process payments.


A new model is emerging—open-loop cards. Driven by Picafuel’s innovative approach and technology, these cards offer universal acceptance at limitless locations, flexibility to cover various products and services beyond fuel, and scalability to grow with your business, enabling retailers to break free from the limitations of closed-loop payment systems. Picafuel is revolutionizing payment systems, empowering companies to unlock new revenue streams and enhance operational efficiency, helping them stay competitive in an increasingly fast-paced market.


Close-loop card

Traditional Fuel Cards: Closed-Loop Systems


Closed-loop fuel cards, typically issued by specific brands, have been a staple in the energy retail industry for decades. These cards are restricted to designated providers, locations, and services—mainly fuel at participating stations. While they offer the advantage of controlled spending environments, they also come with significant limitations in flexibility and scalability.



Pros&Cons of closed loop cards

Pros:

  • For Fleets: Control over spending, with purchases restricted by location and type.

  • For Retailers: Brand loyalty, as customers return to the same fuel network.


Cons:

  • For fleets: Lack of operational flexibility, as closed-loop cards can only be used at specific authorized fuel companies and are restricted to fuel purchases only, requiring drivers to carry multiple cards for other expenses.

  • For Retailers: Addressing new market needs. The closed-loop systems are limiting retailers from expanding due to costly system updates to offer new products, limited by their integration capabilities with other payment systems and the high cost of scaling.


Open-loop card

The Shift to Open-Loop Cards


Open-loop cards introduce a new model for fuel cards, functioning like credit cards and accepted at unlimited locations beyond fuel stations. Unlike closed-loop cards that are limited to specific brands and products, open-loop cards allow for an unlimited range of products and services, including fuel, EV charging, in-store purchases, maintenance services, travel, and expenses (T&E). Providing greater flexibility and scalability, enabling businesses to use one card for various payments—similar to a personal credit card—while still maintaining full control over spending.


Example: An employee on a business trip can use an open-loop card for fuel, T&E, and even emergency expenses. Combining these expenses with traditional fuel services under one versatile open-loop payment system eliminates the limitations of closed-loop systems and enables businesses to integrate a broader range of services into a single, convenient platform.



Why Open-Loop Cards Are the Future


Energy retailers can break free from the limitations of closed-loop systems. Transitioning to open-loop systems will provide retailers the flexibility needed to launch new revenue opportunities and position their businesses for future growth.



Key benefits- Open loop cards

Key Benefits of Open-Loop Cards


  • Unlock new revenue streams: Go beyond fuel sales by capturing additional revenue opportunities such as in-store purchases, EV charging, tolls, parking, and support of multiple fuel networks under one card.

  • Improve customer experience: A single, versatile card accepted at limitless locations simplifying the user experience while retaining the control of traditional fuel cards.

  • Provide unparalleled flexibility: Fleet managers can customize card usage, combining fuel, T&E, maintenance, and other services without limitations on products or locations.

  • Lower costs: Open-loop cards integrate as digital cards, reducing the need for physical card issuance and providing lower maintenance and upgrade costs of payment systems, as they are based on standard credit card infrastructure.



How Picafuel’s Open-Loop Card Solution is Transforming Payments


Picafuel’s open-loop card solution ensures that retailers can manage payments efficiently, tap into new revenue channels, and optimize operational performance. Picafuel is enabling retailers to stay ahead of market trends while ensuring a seamless and future-proof payment experience.


Our platform provides a highly intuitive, easy-to-use management system that empowers fleet managers to oversee spending across a wide range of products and services—all within one unified system.


Picafuel’s platform supports the full lifecycle of card management—from issuance and real-time monitoring to integration with broader payment networks—allowing for effortless tracking and reconciliation of transactions.


Explore how Picafuel’s open-loop card solution can help you grow your revenue and optimize operations.


Contact us today to see how we can support your business in achieving its full potential.


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