Tallinn

Mission to Tallinn: Wallester

Norbert Gehrke

10 Dec 2025 — 9 min read

The seventh and last corporate stop of our "ICT & FinTech Mission to Tallinn" last week, courtesy of Enterprise Estonia, led us to Wallester. The meeting provided an in-depth technical and operational overview of Wallester’s role as a card issuer and payment processor. The presentation focused on their two core business lines: Wallester White Label, a turnkey infrastructure for partners to launch their own branded card programs, and Wallester Business, a corporate expense management platform designed for SMEs and large enterprises.

Key highlights included Wallester’s vertical integration strategy—managing its own processing, licensing, and IT infrastructure in-house rather than relying on third-party vendors. This structure allows for significant agility regarding project launch times, cost efficiency, and API flexibility. The presentation also covered the company's regulatory status across the European Economic Area (EEA) and the UK, its technological stack (REST API, AWS cloud architecture), and specific use cases ranging from neobanking and crypto-to-fiat bridges to media buying and logistics management.

1. Company Profile and Regulatory Status

1.1. Organizational Overview

Wallester positions itself as a specialized FinTech company and card issuer. Founded in 2016, the company has evolved from a startup to a regulated financial institution with a significant footprint in Europe.

Headquarters: Tallinn, Estonia.
Regional Offices: France (Paris), United Kingdom (London), and Latvia (Riga).
Team Structure: Over 220 employees, with approximately 30% dedicated to IT and product development. This weighting towards engineering underscores the company's focus on maintaining its own technological infrastructure. The company also actively maintains in-house compliance, fraud monitoring, and customer support teams rather than outsourcing these critical functions.

1.2. Licensing and Memberships

A central pillar of Wallester’s operational capability is its direct relationship with Visa and financial regulators.

Visa Principal Member: Wallester holds Principal Member status with Visa. This is a critical distinction from "Associate" members, as it allows Wallester to issue cards, process transactions, and sponsor BINs (Bank Identification Numbers) directly, without an intermediary bank.
Regulatory Licenses:
- Estonia: Payment Institution License authorized by the Estonian Financial Supervision and Resolution Authority (Finantsinspektsioon). This passports their services across the European Economic Area (EEA).
- United Kingdom: Cross-border license and FCA registration to operate within the UK market.
Scope of Operation: The company actively issues cards and provides payment solutions across the EEA, UK, and Switzerland.

1.3. Historical Timeline

2016: Company founded; development of core White Label solution begins.
2018: Obtained Payment Institution License in Estonia.
2019: Launch of Visa Virtual Cards; became Visa Fintech Fast Track member.
2020-2021: Achieved Visa Principal Membership; launch of the mobile app and White Label core solution.
2022: Incorporated in the UK; launch of Wallester Business (corporate expense platform); partnership with Amazon Web Services (AWS).
2023: Launch of Affiliate Program; expansion of the "Payroll Card" program.
2024: Appointment of UK CEO; obtained cross-border license for the UK; launch of biometric security for online purchases; opening of the Latvia office.

2. Core Solution #1: Wallester White Label

The Wallester White Label solution is an infrastructure-as-a-service product designed for regulated and non-regulated entities that wish to issue branded Visa cards to their own client base.

2.1. The "Turnkey" Concept

Wallester provides a "plug-and-play" infrastructure. Clients do not need to build their own processing centers, obtain direct Visa licenses, or manage complex regulatory compliance for card issuance. Wallester acts as the "rails" upon which the client's brand operates.

Single API: Access to all services (issuance, processing, KYC, tokenization) is provided via a unified REST API.
Speed to Market: Because the infrastructure is pre-built and proprietary, Wallester claims a launch timeline of 4–6 weeks for a fully branded card program, compared to the industry standard of several months or years.

2.2. Target Clients and Use Cases

Neobanks & Fintechs: Companies offering digital banking services that require physical and virtual debit cards for their users.
Crypto Exchanges: Platforms like KuCoin and WhiteBIT use Wallester to issue crypto-backed debit cards. This bridges the gap between digital assets and fiat payments, allowing users to spend crypto balance anywhere Visa is accepted.
Lending & Credit Providers: For disbursing loans directly to a card.
Gig Economy Platforms: For instant payouts to workers (e.g., delivery drivers, freelancers).

2.3. Key Features of White Label

BIN Sponsorship: Wallester lends its regulatory license to the client. This is crucial for non-regulated entities (e.g., a marketing agency or a loyalty program) that want to issue payment cards but lack a banking license.
Card Types:
- Physical Cards: Customizable plastic or potentially metal cards (up to 20g).
- Virtual Cards: For online use.
- Disposable Cards: One-time use virtual cards for high-security transactions.
Tokenization: Native integration with Apple Pay, Google Pay, Samsung Pay, Garmin Pay, and Fidesmo. This allows end-users to add their white-label cards to digital wallets immediately upon issuance.
Mobile App: Wallester offers a white-label mobile application (iOS/Android) that carries the partner’s branding, allowing for immediate deployment without the partner needing to develop their own app from scratch.

A significant aspect of the White Label offering is the revenue-sharing model regarding Interchange Fees.

Mechanism: When a cardholder spends money, the merchant pays a fee (Interchange). Visa collects this and distributes a portion back to the issuer (Wallester).
The Split: Wallester offers a 50/50 split of this Interchange revenue with its White Label partners. This allows partners to generate a new revenue stream simply by their user base utilizing the cards.

3. Core Solution #2: Wallester Business

Launched in 2022, Wallester Business is a corporate card and expense management platform. Unlike the White Label solution which is for reselling cards, this solution is for companies to use cards for their own operational expenses.

3.1. Platform Functionality

The platform is designed to replace traditional employee reimbursement models (petty cash, personal card usage) with a centralized, controlled corporate card system.

Instant Issuance: Administrators can issue cards to employees instantly via the dashboard.
Expense Control: Companies can set strict limits on cards (daily/monthly limits, specific merchant categories, etc.).
Real-Time Monitoring: All transactions appear on the company dashboard instantly, allowing finance teams to monitor budget burn rates in real-time rather than waiting for end-of-month bank statements.
Accounting Integration: The platform allows for the attachment of invoices/receipts via the mobile app. A photo of a receipt is snapped, attached to the specific transaction, and synced with accounting software (e.g., Xero, Sage, QuickBooks), streamlining bookkeeping.

3.2. The "Freemium" Value Proposition

Wallester utilizes an aggressive pricing strategy to capture market share in the SME sector.

Free Tier: Companies can sign up and receive up to 300 virtual cards and unlimited physical cards with zero monthly fees and zero issuance fees.
Revenue Source: Wallester monetizes this free tier through the Interchange fees generated when the corporate clients spend money on the cards.
Premium Tiers: For companies needing advanced features (more extensive BIN ranges, specific custom implementations), paid tiers (Platinum, Enterprise) are available.

3.3. Strategic Use Cases

The presentation highlighted several specific industries where Wallester Business is particularly effective:

Media Buying (Ad Spend): This is a primary use case. Marketing agencies running ads on Facebook, Google, or TikTok require multiple cards to manage different client budgets and avoid platform bans (risk mitigation). Wallester allows them to issue separate virtual cards for each ad campaign or client instantly.
Logistics & Transportation: Trucking companies issue cards to drivers for fuel and travel expenses. Limits can be set to ensure cards are only used at gas stations.
Travel Agencies: For booking flights and hotels for clients using virtual cards.
Affiliate Marketing: Managing payouts and expenses for large networks of affiliate marketers.

3.4. Payroll and Sub-Accounts

The platform supports payroll functionality. Companies can issue cards to employees (including freelancers or gig workers) and disburse salaries or payments directly to these cards. This is particularly useful for workforces located in different jurisdictions or for unbanked temporary workers.

4. Technological Infrastructure

Wallester differentiates itself through a "build, don't buy" philosophy. By owning the entire technology stack, they claim to eliminate the friction, cost, and delays associated with legacy banking infrastructure.

4.1. In-House Processing

Independence: Wallester does not rely on third-party processor vendors (like GPS or Marqeta). They built their own processing platform.
Benefit: This allows for instant changes to card configurations, immediate data access, and higher system reliability without waiting for external vendor support tickets.

4.2. Cloud-Native Architecture

AWS Partnership: The infrastructure is fully cloud-based, hosted on Amazon Web Services (AWS). This ensures scalability, high availability, and security redundancy.
Modern Stack: Use of technologies like Docker and Kubernetes ensures the platform is modular and easy to update.

4.3. REST API

The Wallester platform is API-first.

Unified Access: A single API connects clients to all services: card issuance, transaction monitoring, KYC verification, and setting spending limits.
Developer Friendly: The API is public and documented (JSON format), allowing client developers to integrate card functionality directly into their own ERPs, apps, or websites.
Data Richness: The API provides granular transaction data (Level 3 data), which includes line-item details of purchases, not just the total amount and merchant name.

4.4. Security and Fraud Prevention

3D Secure: Standard implementation of Visa’s 3D Secure protocol for verifying online transactions.
Internal Fraud Monitoring: A dedicated in-house team monitors transaction patterns to detect anomalies.
Tokenization Security: By integrating with Apple/Google Pay, actual card numbers are replaced with tokens during transactions, reducing the risk of data theft at the point of sale.

5. Market Strategy and Competitive Positioning

5.1. Differentiation from Competitors

Wallester identifies its main competitors as legacy banks and other Banking-as-a-Service (BaaS) providers (e.g., Solaris, Swan, Marqeta).

Speed: Wallester claims a 4-6 week launch time versus 6-12 months for traditional bank partnerships.
Cost: By removing intermediaries (processors, bin sponsors, tech vendors) and doing everything in-house, Wallester reduces the cost layers usually passed on to the client.
Flexibility: The ability to support diverse client types (crypto, media buying, logistics) where traditional banks are often risk-averse and slow to onboard.

5.2. Global and Multi-Currency Support

Currencies: The platform supports issuance and settlement in multiple currencies (EUR, USD, GBP, SEK, NOK, DKK, CZK, HUF, RON, PLN).
FX Efficiency: Wallester offers inter-currency exchange services, allowing clients to hold funds in one currency and spend in another with competitive conversion rates, minimizing FX losses for cross-border businesses.

5.3. Approach to the Japanese Market

While currently focused on the EEA and UK, Wallester acknowledges Japan as a potential market.

Current Status: Japanese companies can utilize Wallester’s services if they have a legal entity registered in the EEA or UK.
Partnership Model: Wallester can partner with Japanese entities (like travel agencies or logistics firms) that operate internationally.
Future Outlook: Direct issuance in Japan would require local licensing, which is a long-term goal. For now, they serve the market through cross-border solutions or by supporting Japanese firms expanding into Europe.

6. Technical & Operational Q&A Insights

During the session, several technical clarifications were made that are relevant for potential partners:

6.1. Card Configuration and Limits

Configurability: Clients can dynamically adjust spending limits via API. For example, a card can be set to work only for a specific merchant category (e.g., "Fuel" or "Advertising") and blocked for others (e.g., "Alcohol" or "Gambling").
Card Lifetime:
- Virtual Cards: Can be active for years or set to expire after a specific date.
- Disposable Cards: Valid for one transaction only. Once used, the card details become invalid, providing maximum security for one-off purchases at untrusted vendors.

6.2. Onboarding and KYC (Know Your Customer)

Process: Onboarding for the Wallester Business platform is fully digital.
Requirements: Corporate documents (Business Register extract) and ID verification for UBOs (Ultimate Beneficial Owners) and directors.
Timeline: For standard business accounts, onboarding can be completed within 24 hours. For White Label partnerships, due diligence is more involved but streamlined compared to traditional banking.

6.3. Support Structure

Client Support: Wallester assigns dedicated account managers to partners.
Technical Support: Direct access to IT teams is available for API integration issues, avoiding generic call centers.

7. Conclusion

Wallester presents itself not merely as a card issuer, but as a holistic financial infrastructure provider. Their value proposition lies in the vertical integration of licensing, processing, and software development. By offering both a "White Label" solution for companies wanting to become fintechs and a "Business" solution for companies needing operational efficiency, they cover a wide spectrum of the payments market. Their technology-first approach (REST API, Cloud, Mobile App) and aggressive "freemium" pricing for corporate clients position them as a flexible alternative to traditional banking institutions for modern digital businesses.

Mission to Tallinn: Wallester

Norbert Gehrke