White-Label

Executive Summary

A white-label solution allows one company to offer products or services that are developed and maintained by another company, under its own brand.
In the financial industry, white-labeling is widely used in digital banking, payments, and fintech services.
It helps non-banking companies quickly enter the market by outsourcing infrastructure, compliance, and technology.
Common examples include branded credit/debit cards, payment gateways, mobile banking apps, and trading platforms.
It enables scale, speed, and brand expansion while maintaining user trust and functionality.

Definition

White-label refers to a business model where one company produces a product or service, and another company rebrands and sells it as its own. In finance, this often means using another company’s banking or payments infrastructure to deliver services under your own brand, without developing the backend technology yourself.

Background / Backstory on White-Label

The white-label concept originated in retail, particularly in generic consumer goods. As industries digitized, the model evolved into software and financial services. In banking and payments, the rise of APIs, fintech-as-a-service, and BaaS platforms enabled white-labeling of complex infrastructure. This allowed companies to offer card issuing, digital wallets, or even full banking services without becoming fully licensed banks themselves.

How is White-Label Used in the Industry Today?

White-labeling is used across financial services to enable:

Neobanks and fintech startups to launch without building core infrastructure.
Retailers and tech firms to offer branded credit cards and wallets.
Payment processors to provide gateways and platforms that clients can rebrand.
Crypto platforms to offer branded exchanges, wallets, and cards.

The underlying services are powered by regulated or infrastructure providers, while the customer sees only the client’s brand.

How Does It Work?

Example 1: Branded Fintech App

A startup wants to launch a digital banking app. Instead of building the tech or applying for a banking license, it partners with a licensed BaaS provider offering white-label services. The startup customizes the app with its own branding and user interface, while the backend—accounts, payments, compliance—is handled by the provider.

Example 2: White-Label Crypto Card

A crypto company wants to offer a debit card that allows users to spend crypto. It partners with a licensed issuer offering white-label card services. The card bears the crypto company’s brand, but transactions, KYC, and settlement are managed by the issuing provider.

Simple Analogy for White-Label

Think of white-labeling like ordering a custom cake from a bakery. The bakery does all the baking (infrastructure), but you put your name on the cake box (branding) and sell it as your own product.

ELI5 (Explain Like I’m 5)

It’s like playing with a toy someone else made, but you put your name sticker on it and show it to your friends like it’s yours. The toy still works the same, but it has your name on the box!

Stakeholders and Implementation

Fintechs and startups: Use white-label platforms to launch fast without heavy infrastructure costs.
Banks and infrastructure providers: Offer backend services, compliance, and APIs.
Retailers and tech firms: Expand brand presence with financial products.
Regulators: Monitor the underlying licensed entities for compliance, KYC/AML, and risk.

Challenges include:

Dependency on third-party providers.
Limited control over backend infrastructure.
Regulatory complexity in cross-border applications.

Pros & Cons

Pros:

Fast time to market
Lower cost and technical barriers
Brand ownership and customization
Focus on customer experience rather than backend

Cons:

Reliance on external providers for core services
Limited innovation on standardized platforms
Compliance still required even without a full license

Future Outlook

The white-label model is expected to expand with growing demand for embedded finance, open banking, and API-driven services. More non-financial companies—like e-commerce, social platforms, and ride-share apps—are entering finance using white-label tools. BaaS and fintech infrastructure providers will continue to scale and specialize in regional compliance and innovation.