Closed-loop payment system: tap the card, pay from the balance.

In-depth guide

What is a closed-loop payment system?

A closed-loop payment system is a way of paying with closed-loop prepaid cards that work only inside one business, venue or organisation. Guests, staff, students or citizens top up their card; they spend by tapping it at the venue's tills, POS devices and waiter tablets. With sipnik Card, the NFC card is read on sipnik Kasa and on the waiter tablet, the amount comes off the balance and every movement is recorded.

How does it work, and who is it for?

In a closed-loop payment system, money stays on the venue's own cards. Cardholders top up their card and pay by tapping it at points of sale inside the venue. The difference from a bank card is that the card works only at that venue. A closed-loop card is not a bank card, and sipnik is not a bank. Combined with NFC payments, paying takes a single tap: at the till, on a POS device or on the waiter's tablet. Below we sum up how sipnik Card works, which sectors it suits and how it differs from sipnik Wallet.

Closed-loop vs bank card payments

With a bank card, every transaction goes through the bank's network and the card can be used anywhere. In a closed loop, the card works only at the venue it is set up for: the balance is topped up once and spending comes off the venue's own system. If a card from another business is tapped, the payment is declined. The card cannot be used anywhere outside the venue.

That is why closed loop suits places where people spend at many points inside one venue: hotels, resorts, beach clubs, campsites, festival and concert grounds, water and theme parks, municipal facilities, school canteens and dining halls.

At hotels, resorts and campsites

Guests receive their card on arrival and top up their balance. They pay with the same card at the restaurant, the bar, by the pool and at the shop; no wallet or cash needed. The waiter takes the order on the waiter tablet and takes the payment on the same tablet by tapping the card; if the bill is split, everyone taps their own card. Orders can also come from the QR menu on the table. At campsites, personalised cards are handed out to guests and staff.

At festivals, concert grounds and water parks

Guests get their card on the way in and pay with it at every food and drink point inside. When the balance runs out, they top up at a kiosk, in the app or at the box office. Cash, change and till shortages across many points of sale drop. More on the festivals and concerts and water and theme parks pages.

At municipal facilities and for social support

A closed-loop card and mobile app in the municipality's name work at the municipality's facilities. In municipal dining halls, the card is used for entry and to track daily meal allowances. With a social support card, the balance loaded for people in need can be spent only at partner points. More on the municipalities page.

School canteens, dining halls and staff cards

Sales are made with personalised, closed-loop prepaid cards handed out to students and staff; the card works only inside the school or organisation. The balance is topped up at a service point, a kiosk, the mobile app or the website; spending comes off by tapping the card in the canteen or dining hall. Every top-up and purchase is written to the card's history.

sipnik Wallet or sipnik Card?

sipnik Wallet lives on the customer's phone: balance, stamps and rewards in the brand's own app; when the QR is scanned at the till, the payment comes off the balance, and the balance works at every branch of the brand. It suits neighbourhood cafés and chains.

sipnik Card is a physical NFC card: for guests who don't carry a phone, pools and beaches, festival grounds, canteens and dining halls. NFC payments on the waiter tablet are available only at businesses using sipnik Card. Let's look together at which one fits you.

Cash and bank cards, or sipnik Card?

Last updated: 1 November 2026