Learning the friendly way

Generational wealth is not just about building a large stash of money, it's also about how you pass it on. Once you've paid off your debts and established various forms of income, the next step is to start to build generational wealth that can surpass your lifetime.

In this article, we explore what generational wealth is and how to start building it. As with any investment account, the earlier you start the better the end result. While building generational wealth is a great place to be, we encourage you to get your current financial situation in order and build your financial education before you start exploring this concept.

What is generational wealth?

Generational wealth, also called family wealth, is the transfer of assets from one generation to the next within a family. This may include multiple streams of income from financial investments like stocks and bonds, as well as valuable assets, real estate, and family businesses. These assets continue to generate financial value as opposed to just being a lump sum of cash.

It's important to note that when an individual is born into wealth, that wealth was created by a generation before them, whether that be decades or centuries before. This financial success can help eliminate financial struggles for generations to come, or if not handled correctly, could be eradicated by just one generation.

The key factor when it comes to passing on generational wealth

Creating wealth is not the hardest part, the hardest part is educating the next generations on how to manage this wealth. According to the Williams Group wealth consultancy, 70% of wealthy families lose their wealth by the second generation while a whopping 90% lose it by the third. 

Generational wealth is not about creating enough money to allow your children’s children to sit around all day, it’s about passing wealth down for generations to come to make the world a better place and empower the family tree. It's not about materialism or consumerism, it should be about financial education and philanthropy. Consider how important generational wealth is to you before embarking on building wealth for future generations.

The key steps to building generational wealth

There are two key components that need to come together in order to build generational wealth: firstly, building this wealth, and secondly, passing on this wealth. In this first section, we will cover the former. 

Creating generational wealth isn't going to happen overnight. It's a journey that necessitates time, purposeful planning, and commitment. There are no shortcuts when it comes to creating generational wealth, it's a marathon, not a sprint, no matter which financial assets or stock market you might choose to invest in.

It involves not only taking care of your personal finances through proper planning but also educating the next generation about financial literacy and personal finance. This legacy wealth could go on to fund a child's education or college education, or be used to build an impressive real estate portfolio or invest in family businesses.

It's not about inheriting a trust fund at a young age so that one can simply enjoy life, it's about learning how to be financially fit, understanding how to create wealth, and hopefully building a secure financial future for the next generation.

1. Build a solid financial foundation

First and foremost, you will need to build a solid financial foundation before you start to build generational wealth which means you need to get out of debt and establish an emergency fund (three to six months' worth of expenses).

Do not progress to step two until this step has been completed. In order to build wealth one needs a firm foundation, so set yourself up to weather any storms that might come your way before you embark on the journey to create generational wealth.

2. Start allocating 15% of your income to a retirement fund

Now that you are out of debt and have established an emergency fund, allocate at least 15% to your retirement fund. In this step, consistency is key. Determine what kind of investment account (whether using new-age financial assets or the stock market) you wish to use, consult a financial advisor if necessary, and start allocating 15% of your gross income to this tax-advantaged retirement account.

If you consistently do this for two to three decades you will have built enough wealth to live comfortably after retirement and pass some on. 

3. Build slowly and consistently

As we mentioned earlier, building generational wealth is a marathon, not a sprint. This is a long-term commitment that requires no rush and no pressure. Commit to consistently building your wealth for the rest of your life. 

4. Communicate with your family and educate them about money

Discuss your financial goals with your children and use the opportunity to share your knowledge about wealth. If your wealth creation involves investing in real estate, building a family business, or any avenue that requires active participation, ensure that you keep your descendants in the loop and provide them with the wisdom, knowledge, and skills to maintain and ideally continue to build generational wealth. 

By discussing money frequently, being open about mistakes you have made with finances, and demonstrating smart financial decisions in your own life, you can teach your children about the importance of managing their money wisely.

5. Officiate things by making them legal

When it comes to building generational wealth, a financial advisor is optional but including a lawyer is essential. This step ensures that the generational wealth you spent your lifetime building is distributed accordingly.

Ensure that you go through the necessary legal proceedings to make sure you're not only on the right side of the law but also that the generational wealth is passed on as per your intentions. 

How to pass on generational wealth

Now that you've put the processes in place to start to build generational wealth, the next step is to put in place the necessary steps to ensure a smooth handoff. Here are three key steps to ensure that your generational wealth remains a blessing and not a chaotic curse for those left behind. 

1. Create a will

No matter what earthly possessions or family wealth one has, a will is essential for everyone 18 years and older. This legal document outlines how your assets are distributed after you die. While consulting legal counsel is advised, there are plenty of templates and methods online for writing and establishing your will. Regardless of whether you create generational wealth or not, this step is important.

2. Establish an estate plan

Estate planning entails organizing your possessions and determining how they should be handled after you have departed. A will is a very important component, but if your net worth exceeds $1 million, consulting a professional could be wise to guarantee that all the details of your estate plan are in order. 

Expert estate planners can help with more complex situations, like a family business or intricate family wealth, as well as demonstrate tactics for diminishing federal taxes so you don't pay any more than necessary.

3. Put together a legacy drawer outlining your family wealth

Crafting your legacy drawer should be on everyone's to-do list, it is a place where you store important documentation and items that will become invaluable for your family (and family wealth) should anything happen. While there are many documents to consider keeping in this secure location, here are a few must-haves:

• Your will and estate plan
• Financial account information
• A copy of your monthly budget
• Life insurance policy
• Tax returns
• Account passwords
• Personal letters to loved ones
• Funeral instructions

Create lasting generational wealth

If you want to create lasting generational wealth and blessings for generations to come, it's time to put your head down and get started. Consider this a long-term journey that with the right investments and education will empower generations to come.

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Arbitrage is an alternative trading style where investors buy an asset on one marketplace and sell it on another for a higher price. Used across a wide range of asset classes in different markets, for example, the stock market like the New York Stock Exchange, financial markets, commodity trading, and cryptocurrencies. This style of trading can be very lucrative if you know what you're doing, but as always, there is a risk involved.

Below we explore what arbitrage is, what an arbitrage trade looks like, and what risks are involved.

What is arbitrage?

Arbitration is the process of profiting from differences in asset prices by simultaneously buying and selling the same asset in different markets. Arbitrage exists due to market inefficiencies, which it both exploits and resolves by bringing attention to the price difference. 

Traders that use this form of trading are called arbitrageurs and will typically look for arbitrage opportunities within one chosen asset class. Arbitrageurs look for unique circumstances usually across foreign markets that allow for the same goods to be traded for different prices. For instance, an arbitrageur will buy the same stock on the London Stock Exchange and sell it on the New York Stock Exchange and collect a profit.

While this sounds foolproof, the reality is that arbitrageurs require an in-depth knowledge of different markets, the skills required to spot arbitrage opportunities, and a keen understanding of the relevant news cycles. With notable risks involved, arbitrage trading is not advised for beginners. 

What are the risks involved with arbitrage trades?

While arbitrage trading may sound easy, it is quite complicated. Many things can go wrong if an investor does not fully understand the market and the variables involved before trying to make a quick profit.

Those with fewer resources and expertise are less likely to execute arbitrage because it requires a large amount of up-front cash as well as working knowledge of derivatives and margin trading. Arbitrage trading is not for every investor. Before you jump on any arbitrage opportunities, below are several risks involved in the practice:

Errors in market price differences

Considering that arbitrage trades are based on market inefficiencies, there is a high chance that the price could quickly take a turn, leaving the investor with a large amount of an asset. To overcome this unpredictability, arbitrageurs study financial markets, stay informed with the news, and build a deep understanding of the markets in which they invest. 

Fees and exchange rates

Brokerage fees, transaction costs and foreign exchange rates play a big role in unforeseen expenses when conducting arbitrage trading. These expenses should be factored into the cost calculations prior to taking on any arbitrage opportunities in order to best understand what you're getting into. 

Timing

Possibly the most crucial element to this trading technique, timing needs to be well calculated as it plays a role in whether you catch or miss the price discrepancies and ultimately profit from your trades. 

How does one get into arbitrage trading?

As arbitrage trading involved trading between international markets, the first place to start is by thoroughly monitoring and researching international markets and news. In doing so, the arbitrageur will look for any discrepancies in asset prices across the markets, and pinpoint a precise time to buy and sell the asset across the different markets. This is done at the same time so as not to miss out on price opportunities and be left holding onto an asset. 

An example of arbitrage

To assist you in better understanding what is arbitrage, let's take a look at an example of an arbitrage trade. Say you have your eye on a stock that is traded on both the London Stock Exchange and Tokyo Stock Exchange (TYO). From monitoring the price fluctuations you pinpoint the perfect moment to execute a buy-sell trades. Let's say you're looking at stocks in an automotive company as it's valued at $100 on the LSE and $75 on the TYO (obviously priced in their respective currencies).

Taking advantage of the price discrepancy, time difference and fluctuating circumstances of each market, you buy the cheaper version of the stock and simultaneously sell it on the higher-valued exchange. 

While the price discrepancy indicates profits of $25 per share bought and sold, the reality is that there will also be discrepancies in the currencies used and the fees payable for conducting these trades. The more shares you buy the higher your profits will be, so ensure that you calculate the earning potential before investing a large amount of capital. 

Should I get into arbitrage trading?

While the opportunity for profits sounds great, there is a lot of research and calculations required in order to be successful in this field. As with all investment strategies and trading techniques, arbitrage is no exception to the amount of risk involved. If you're willing to do the work and put in the hours, arbitrage trading could work in your favor. 

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There are plenty of certainties in life, and trading is no different. Whether you’re a novice trader or a professional, one of the few guarantees when it comes to any market is that there will be bear markets, and there will be bull markets.

It’s easy to get caught up in the highs of a bull market, but when it comes to navigating bear markets one needs to keep their wits about them. Below we outline 8 trading strategies to take with you through times of dropping price movements. 

Only invest what you’re willing to lose

The golden rule of investing: never invest more than you can afford to lose. It might sound grim, but the reality is that no market or asset is ever guaranteed to succeed so be wise with your investments. Whether in a bear market or a bull market, this golden rule should never be skipped.

Once you’ve set up your budget and determined your living expenses (rent, groceries, insurance, etc), only then can you establish how much money you can invest. Bear markets and price corrections can have a significant impact on your finances, never take a chance with your living expenses or by underestimating the importance of establishing what your risk tolerance is.

Embrace dollar cost averaging

Economic cycles will inherently go up and down, and a great way to minimize risk is to implement dollar cost averaging into your trading strategy. Ideal for traders with a 10+ year timeline, dollar cost averaging involves buying the same asset on a consistent basis no matter the price. With the varying price differences, investors typically accumulate more for less over a long period of time. 

This dollar cost averaging strategy is particularly useful during bear markets when the asset prices are typically undervalued, which leads us to the next point. 

Find undervalued assets

During a bear market, asset prices are often described as being pummeled and underpriced, presenting an excellent buying opportunity for the savvy investor. The trick here is to know what you’re looking for and to conduct adequate research. In a bear market, both good and poor companies have hammered down asset prices, ensure you do your research to determine the one from the other. 

Bear markets tend to also be a great time to accumulate more from the companies/assets you are already invested in, accumulating the assets for less than they’re worth. This is a common strategy used in the stock markets when stock prices are undervalued.

Market timing can mean everything whether you're in bear market territory or not, so make sure you have adequate information before engaging in declining markets.

Branch out with diversification

Bear markets are a great time to implement an asset allocation strategy and broaden your investment horizons. When asset prices are low (even during market volatility) it creates an excellent buy-in opportunity for investors to spread their portfolios across alternative investments such as bonds, different asset classes, cash, and stocks.

Regardless of whether it's a bear market or a bull market, always consider your risk tolerance and financial goals, and as always conduct your own research, as you explore different markets and determine whether they would be a good fit for your portfolio. 

Explore non-cyclical stocks on the stock market

Non-cyclical or defensive stocks are a type of investment that usually do well even when the overall stock market is down. These stocks are from companies that make things like toothpaste, toilet paper, and soap, items that people still use even during tough times and market downturn. They usually pay regular dividends and have stable earnings, which can make them a good choice for investors who want to reduce risk during stock market decline.

Treat bear markets like you would a bear

During a bear market sometimes the best thing to do is exactly what you’d do if faced with a real bear in the woods: play dead and don’t make any sudden moves. In the financial sense, this means moving your money to safe places and not making any sudden, irrational buy/sell trades.

This typically involves putting more of your money into safe investments that you can easily access, like certificates of deposit (CDs) or U.S. Treasury bills. By doing this, you can ride out the market's ups and downs without losing too much money

Leave your emotions out of it

On Wall Street, there's a saying that 'The Dow climbs a wall of worry,' which means that even when things seem bad, the stock market can keep going up. Applicable across all markets, as an investor, it's important to not let your emotions guide your decisions. Sometimes big problems turn out to be not so bad in the long run. Fear can make it hard to think rationally, so it's best to stay calm and carry on with your investment strategy.

Short selling

If prices are falling, there are ways to make money from the situation. One way is through short selling, where you borrow shares in a company, ETF or asset and sell them with the hope of buying them back at a lower price. Another option is using put options, which increase in value as stock prices fall and limit your potential losses. 

Inverse exchange-traded funds (ETFs) also let you profit from a falling bear market by increasing in value when major indexes go down. These can be easily purchased from your brokerage account without requiring margin accounts or advanced trading skills.

Not ideal for beginner traders, only implement these strategies if you feel confident to do so or have contacted the necessary professionals. 

In conclusion

Bear markets are an inevitable part of trading, and it's essential to be prepared with strategies to minimize losses and even profit from the situation. By only investing what you can afford to lose, embracing dollar cost averaging, finding undervalued assets, diversifying your portfolio, exploring non-cyclical stocks, leaving emotions out of your decisions, and potentially using short selling or inverse ETFs, you can weather the storm of any bear market. 

It's crucial to remember to stay calm, do your research, and seek professional advice if needed. With these strategies in mind, you can navigate a bear market with confidence and come out on top.

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Tap (XTP) is a pioneering financial technology platform established in 2019, revolutionising finance by merging traditional banking with cryptocurrency management. It facilitates instant, free money transfers within its network, incentivising its community and simplifying bill splitting and expense sharing. Tap aims to democratise finance and empower individuals with comprehensive financial tools, offering intuitive interfaces, powerful features, and robust security measures.

What is Tap (XTP)?

Managing money across different platforms and currencies can be a daunting task in today's digital world. Tap (XTP) emerges as a groundbreaking fintech solution, bridging the gap between traditional finance and cryptocurrencies. Established in 2019, this innovative app is on a mission to democratise finance and empower users with comprehensive financial tools.

What sets Tap apart is its ability to provide an all-in-one ecosystem where you can send and receive money or crypto instantly fee-free within its Tap2Tap network , pay bills, and invest in a range of cryptocurrencies. Tap also offers an easy on-ramp to convert fiat into digital assets and off-ramp services to cash out using low fees. No more juggling multiple apps or fretting over international fees when traveling abroad.

The XTP token, Tap's native ERC-20 cryptocurrency, is the key that unlocks the full potential of this platform. Use XTP to access premium features like up to 8% cashback on spending, earn rewards, and gain entry to exclusive services within the Tap ecosystem. With its integrated Mastercard, you can effortlessly spend your funds and earn cashback at millions of merchants globally.

Powered by robust security measures, regulatory compliance, and a user-friendly interface, Tap offers a secure and transparent financial journey tailored for the modern consumer.

What is Tap - Introducing Tap's Functionality

Tap is a comprehensive financial platform that seamlessly combines traditional money accounts and cryptocurrency management, providing users with a centralised platform for all their monetary transactions. At its core is a mobile app that serves as the primary interface for accessing Tap's services.  

Before gaining access, users must undergo a verification process that involves providing personal information to comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. Once verified, the user-friendly app allows them to purchase, sell, and securely store a diverse range of cryptocurrencies – currently close to 50 different options.

The app simplifies the process of acquiring cryptocurrencies by accepting various payment methods, including debit cards and bank transfers. Users can also transfer cryptocurrencies from their external wallets into their Tap account or sell their holdings and transfer fiat currency directly to their bank accounts. Alternatively, users can also can send cryptocurrencies to other wallets or exchanges.  Tap's wallet system is designed with robust security measures and encryption capabilities, ensuring the safekeeping of users' assets.

For seamless spending of cryptocurrencies, users can order a Tap Mastercard – available in both physical and virtual forms – directly through the app. To use the card for purchases, they can preload it directly from their Tap wallet. The card also enables cash withdrawals from ATMs globally and offers generous cashback of up to 8%, depending on the user's tier. Additionally, the card provides excellent FX conversion rates, enabling its users to spend worldwide worry-free.

What makes Tap Unique?

Forget juggling multiple apps and accounts. Tap seamlessly blends traditional money accounts with cutting-edge crypto, all in one intuitive platform. Instantly convert your digital assets to cash for everyday use or grow your portfolio with a wide range of supported cryptocurrencies. It's the best of both worlds.

What truly sets Tap apart is its ability to instantly convert cryptocurrencies to fiat currency with its on-off-ramp feature. No more waiting around or dealing with convoluted processes. This feature  comes in handy for users looking to incorporate cryptocurrencies into their everyday transactions, as it removes the usual delay associated with crypto-to-fiat conversions.

Tap's supports a wide range of cryptocurrencies provides users with the flexibility to store, manage, and trade a diverse portfolio all from one platform. This broad support makes it a go-to app for cryptocurrency enthusiasts.

What is the Tap Ecosystem?

The Tap ecosystem embodies a comprehensive suite of financial services and functionalities aimed at delivering a seamless interface for overseeing both fiat and cryptocurrency holdings.

Here is a list of the different functionalities it offers:

Multi-Currency Wallet:

Tap offers a secure and encrypted digital wallet that supports over 50 different cryptocurrencies. This wallet allows users to store, manage, and easily switch between various crypto and fiat currencies, catering to both investment and everyday transaction needs.

Cryptocurrency Exchange:

Users can trade a broad and diverse range of cryptocurrencies. Unlike other platforms with limited pairs, Tap allows users to exchange any asset for another without constraints. This hassle-free process ensures flexibility and ease of use. Additionally, the trading platform prioritises speed and efficiency, delivering a dependable and user-friendly experience to all users.

Tap Prepaid Mastercard:

A pivotal component of the Tap ecosystem is its prepaid Mastercard, empowering users to spend and withdraw money worldwide.

Cash Back:

A standout feature of Tap's offerings is its cash back program, providing rewards to all users who use their card. By upgrading, users can unlock even greater benefits, earning up to 8% cash back on their Tap card purchases.

Instant Money Transfers:

Tap enables quick and free money transfers worldwide through its Tap2Tap network, allowing users to send crypto to other Tap users within the app without incurring additional charges.

Fiat Currency Support:

Alongside its crypto services, Tap also supports various fiat currencies, allowing users to manage traditional currency alongside their digital assets.

Investment and Trading Tools:

Tap provides users with a range of tools and features, including a smart trading router, market newsletter, and real-time price tracking.

Smart Trading Router:

The top-of-the-line smart router locates the best execution location by scanning multiple exchanges and liquidity providers in real-time, to find the best available price available price it can locate for their purchases.

What is the XTP Token?

The XTP token serves multiple purposes within the Tap platform. Primarily, it facilitates trading by reducing trading fees and enabling users to access various premium plans, each offering a wide range of benefits. Users can also exchange XTP for numerous cryptocurrencies listed on the platform, thanks to the availability of multiple XTP trading pairs. This flexibility allows users to diversify their digital asset portfolios conveniently.

By utilising XTP tokens, users can upgrade to premium plans that offer perks such as up to 8% cashback, reduced trading fees, decreased FX fees, higher card spending limits, exclusive market newsletters, and premium support within the app. Furthermore, Tap facilitates quick and free transfers of XTP tokens between Tap accounts, providing a seamless solution for global asset transfers. This functionality is particularly valuable for individuals seeking efficient and cost-effective methods to move funds across borders.

Tap's well-regulated and secure app ensures a smooth trading experience, catering to the unique needs of each user. Additionally, the platform provides a secure wallet for the safe storage of XTP tokens, offering peace of mind and streamlined asset management for users.
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In the fast-paced world of fintech, standing still means falling behind. At Tap, we've embraced this ethos wholeheartedly, pushing the boundaries of what's possible in digital finance. As we reflect on the first half of this year, we're proud to share a story of relentless innovation, expansion, and customer-centric improvements that have solidified our position as an innovative crypto-fintech player.

A Fresh Face for Finance

Our journey this year began with a seemingly simple yet profoundly impactful change – we gave our card a fresh new look. This was more than just aesthetics; it was a statement. In a world where your card is an extension of your digital identity, we wanted to ensure that every time our users reach for their Tap card, they feel a sense of pride and modernity.

Our community spoke, and we listened. Our users, ever  trendsetters, made it clear: they wanted to flaunt their Tap cards without turning their hands into impromptu privacy screens. The result? A card so sleek, so modern, that it practically begs to be photographed which makes a big difference in today's social media-driven world.

But we didn't stop at the surface. While giving our cards a modern facelift, our engineering dev team was hard at work enhancing our platform's core. We’ve also added a new exchange to our smart router and improved trading execution times. For our users, this means faster, more efficient transactions – because in the world of finance, every second counts.

Unparalleled Rewards - The Game-Changing Cashback Feature

Our standout achievement this year is undoubtedly the launch of our new Cashback feature. Born from the vocal requests of our vibrant community, this feature offers one of the industry-leading Cashback rates of up to 8% on card purchases. It's more than just a perk, it's a game changer that puts real rewards back into our users' pockets with every transaction.

This feature also breathes new life into our native XTP token, creating a symbiotic ecosystem where token holders can unlock even more value. By embedding XTP directly into our Cashback system, we've supercharged its Tokenomics, seamlessly connecting the best of traditional finance and crypto in a way that's simple, rewarding, and user-centric.

Expanding Horizons: Conquering the American Frontier

Our ambition knows no borders, and this year, we've made significant strides in our global expansion, particularly in the USA. This wasn't just another market entry – it was a testament to Tap’s resilience and unwavering commitment to our global vision.

The path to the US market was fraught with challenges. The regulatory landscape in the USA is notoriously complex, and the new government crackdown in early 2023 delayed our expansion plans, halting our launch just one week before it was set to go live. 

While this setback caused many companies to retreat from the jurisdiction, we saw it as an opportunity to demonstrate our adaptability and determination.

In the face of these obstacles, we didn't just persevere – we thrived. We've built a new, updated app platform specifically for our American users, tailored to navigate the intricate regulatory environment while delivering the innovative financial solutions Tap is known for.

Our successful expansion into the USA, despite the hurdles, is more than just a new market entry. It's a clear signal of Tap’s global ambitions and our ability to adapt and excel in even the most challenging environments.

Premium Experiences for Premium Users

Recognising that our users' needs evolve, we've introduced new premium user tiers. These tiers are designed to offer tailored experiences that align with the diverse financial journeys of our users and to fit every taste and budget. This is a reimagining of how financial services can be personalised.

Each plan now includes our brand new Cashback feature, allowing users to earn as they spend, and a dedicated market newsletter to keep them informed and empowered in their financial decisions. From the budget-conscious to the exclusivity seeker, there's now a Tap experience crafted for everyone.

Elevating the User Experience

Many of you requested this add on and that’s why we've introduced a search bar – a simple addition that makes navigating our feature-rich app a breeze. This simple yet effective addition makes it easier for users to find specific features, transactions, or information within the app.

The search functionality helps both new and experienced users navigate our growing range of services more efficiently, saving time and improving overall satisfaction with the app.

As part of our ongoing efforts to provide diverse financial options, we've expanded our cryptocurrency offerings this year. We've added two new tokens to our platform: GALA and YFI, giving our users more choice in their crypto investments.

Additionally, we've introduced an in-app XTP-BTC trading pair. This new feature allows users to conveniently trade between our native token and Bitcoin directly within the Tap app.

Strengthening Our Core: Behind-the-Scenes

While the changes mentioned above are the ones you can see and touch, they're just the tip of the iceberg. Behind the scenes, we've implemented close to 80 improvements that, while not immediately visible, have dramatically enhanced the overall user experience. 

From app fluidity enhancements to reinforced security measures and new provider integrations, we've been working round the clock to make your Tap experience smoother, safer, and more efficient than ever before.

Looking Ahead‍

As we move into the second half of the year, we're more excited than ever about the future of Tap. We're not just a financial app; we're your partner in navigating the complex world of modern finance. 

With every update, every new feature, and every market we enter, we're driven by a single goal: to empower you to get more from your money.

The story of Tap is one of constant evolution, and we're thrilled to have you along for the ride. Here's to the innovations of today and the financial revolutions of tomorrow.

In the ever-evolving world of finance, delivering seamless payment experiences is paramount for businesses aiming to stand out. Here enters the game-changer: white-label payment solutions. These innovative services empower businesses to present their unique branded payment methods, all backed by the cutting-edge technology and infrastructure of established third-party providers.

These customisable payment solutions are becoming increasingly relevant, as the global digital payment market continues to soar. According to data collected by Markets and Markets, the global digital payments market size was valued at $111.2 billion in 2023 and is anticipated to reach $193.7 billion by 2028.

What's driving this remarkable growth? Businesses are recognising the immense value that white-label payment solutions can bring to the table. 

What are white-label payment solutions?

Anyone in business will confirm that prioritising strong customer connections is essential. White-label payment solutions provide a special chance to not just boost brand identity but also to nurture customer loyalty.

The centrepiece of these problem-solving solutions is the branded payment card. By incorporating a company's logo, colours, and design, these cards become a constant visual reminder of the brand, reinforcing recognition and familiarity with every use.

Beyond aesthetics, these branded cards also serve as powerful engagement tools. By coupling payment capabilities with customer-centric perks like discounts, rewards, and personalised offers, businesses can incentivise frequent usage and higher spending. The cards transform into valuable marketing platforms, enabling direct communication and tailored promotions that boost customer satisfaction and loyalty.

Ultimately, customised payment solutions empower businesses to strengthen their brand presence, differentiate themselves in the market, and forge deeper, more meaningful relationships with their customers.

The power of white-label payment solutions

By leveraging these tailored services, companies can tap into several benefits as outlined below:

Enhance brand identity

White-label payments enable businesses to seamlessly integrate their brand's unique visual elements, messaging, and personality into the payment process - a crucial touchpoint that shapes customer perception. Additionally, it can further establish the brand’s credibility and expertise within its industry.

Improve customer loyalty

A cohesive, branded payment experience fosters a stronger connection between the business and its customers, enhancing loyalty and retention.

Leverage advanced functionality

White-label solutions offer a wide array of cutting-edge payment features and capabilities, allowing businesses to cater to evolving customer preferences and stay ahead of the competition.

Streamline payment processes

By outsourcing the technical complexities of payment processing, businesses can focus on their core operations while delivering a streamlined, hassle-free payment experience.

Industries that leverage white-label payment solutions

While white-label products can be applied across a multitude of industries, certain business categories have particularly excelled at leveraging this strategic approach:

Retail giants

Large retailers like Whole Foods and Walmart have effectively developed their own branded products, manufactured by third-party providers. This allows them to cater to the unique needs and preferences of their customer base in real-time.

Electronics manufacturers

The appeal of white-labelling extends beyond retail. Top-tier mobile and computer manufacturers often utilise white-label products to expand their portfolios, positioning more affordable, branded offerings alongside premium lines.

Transnational corporations

The white-label trend has gained significant traction among major corporations. Pioneered by Tesco in 1998, the strategy of segmenting customers and cultivating tailored brands has been widely emulated. Target, for instance, seamlessly integrates over 10 distinct white-label brands, each catering to specific demographics and generating over $1 billion in annual revenue.

Across diverse industries, from grocery to electronics, businesses have capitalised on the versatility and commercial benefits of white-label solutions. This empowers them to better align their offerings with evolving customer demands and solidify their competitive edge in the marketplace.

Tap’s white-label card offering

As part of Tap’s business solutions, the fintech platform offers an easy card-issuing service for businesses of any size. As we’re fully accredited, we can give partner companies Mastercard-powered private cards quickly and inexpensively compared to integrating directly with financial services.

In 2023, Tap teamed up with Bitfinex, a major crypto exchange, to make a customisable prepaid card for the company to offer to their customers. Bitfinex used Tap's financial system to offer their clients a special payment choice and make extra money.

Tap's big advantage is its ability to issue cards and its own processing system, allowing businesses to make their own branded cards efficiently and effectively. With Tap's programs, companies can smoothly add custom payment options that fit their needs, whether they deal in regular money or cryptocurrencies.

If you’re interested in accessing these services, please get in touch here or through the website.