Highnote’s John MacIlwaine — On Unlocking the Embedded Finance Opportunity
In today’s episode, Rhea Advani hosts John MacIlwaine, Co-Founder & CEO at Highnote. They delve into the evolving payments processing space, emphasizing the rise of innovative embedded finance platforms like Highnote. The conversation also unveils insights into Highnote’s latest Credit Issuing product.
Check out the episode on Spotify | SoundCloud | Apple Podcast
Read on for a sneak peak:
How have legacy players like FIS and Fiserv responded to non-financial institutions offering financial products?
“Legacy players are in the driver’s seat for large-scale capabilities but struggle with innovation. Platforms like Highnote offer flexibility, innovation, and nimbleness, enabling businesses to move faster and compete effectively.”
Can you provide an example of a customer well-suited for Highnote’s services?
“One interesting vertical is the fleet or fuel card industry. Highnote supports telemetry, enabling innovations like tracking vehicles during fueling. It also offers various programs like prepaid debit, disbursement fuel cards, and invoice management.”
What are the regulatory considerations when building in this space?
“Highnote acts as a Program Manager, educating customers about compliance and regulatory requirements. Customers sign cardholder agreements, obligating them to adhere to these requirements, with Highnote’s support in compliance education and reporting.”
What were the challenges in launching Highnote’s credit product?
“Challenges included implementing loan servicing, managing repayment structures, and staying ahead of evolving regulatory requirements. Highnote’s platform integrates all functions, providing an all-in-one solution for credit programs, differentiating itself from competitors.”
Why did Highnote expand beyond debit to offer credit products?
“Customer feedback drove the expansion. Customers wanted credit programs to offer differentiated products, and Highnote responded to this demand. The goal was to provide nimble, competitive, and differentiable credit programs.”
What are the switching costs for corporations using another platform for their issuing programs?
“Switching can be challenging, but Highnote offers collaborative solutions. Launching new programs alongside existing ones or smoothly transitioning cards reduces short-term costs. Highnote works closely with customers to minimize risks and costs during the transition.”
What are your predictions for the issuer processing space?
“Legacy platforms, innovative embedded platforms like Highnote, and in-house bank issuing platforms will coexist. Each serves different markets, and companies may switch or run programs in parallel based on their evolving needs. The market is large, with opportunities for various players.”
About John MacIlwaine
John MacIlwaine is the CEO and Co-founder of Highnote, an embedded finance company setting the new standard for modern card platform management through differentiated payment experiences.
John has over two decades of experience leading in technical and management roles at global financial companies. Prior to founding Highnote, he served as General Manager of Braintree, a leading global payments platform that powers some of the world’s most innovative and fast-growing companies, including Uber, Airbnb, and Dropbox. During his tenure at Braintree, John was instrumental in driving the company’s global growth and expansion. Before joining Braintree, MacIlwaine served as the Chief Technology Officer of Lending Club, a pioneering online lending platform that connects borrowers with investors. In his role, John laid the groundwork to establish the company’s technical foundation while driving innovation across the organization. Throughout his career, John has been committed to helping businesses move faster and innovate more through differentiated payment experiences. He believes that payments are a critical touchpoint in the customer journey and that businesses must deliver seamless, personalized experiences to stand out in today’s competitive landscape.
About Highnote
Highnote is an embedded finance company setting the new standard in modern card platform management. Purpose-built to realize customer loyalty and engagement through embedded card experiences, Highnote’s fully integrated tech stack provides every service needed for innovative companies to launch new ways to use card payments. Utilizing the developer-friendly Highnote platform, product and engineering teams at digital enterprises of all sizes can easily and efficiently embed virtual and physical payment cards (commercial and consumer prepaid, debit, credit, and charge), ledger, and wallet capabilities into their existing products, creating compelling value for users while growing revenue and building a unique and differentiated brand. The company has raised more than $100 million from leading investors and strategic partners and is headquartered in San Francisco, California. For additional information, please visit www.highnote.com.
About the Author
Rhea Advani is an MBA Candidate at The Wharton School, University of Pennsylvania. Rhea started her career at Barclays Investment Bank before transitioning to operating roles at Revolut and DoorDash. Her interest in fintech stems from her experiences across traditional financial services, neobanking, and technology, which has revealed numerous opportunities for innovation within the sector. Please reach out with questions, comments, feedback and opportunities at radvani@wharton.upenn.edu.
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