Many consumers use their credit cards to earn rewards for their travels.
But what if you’re a sports fan and using a credit card can lead to virtual conversations with players on your favorite team?Thanks to being based in San Francisco Cardless, The opportunity may be slower than you think.
The startup, which is out to provide brands and tech companies with a way to launch custom co-branded credit cards, has raised $ 40 million in a Series B funding round led by Activant Capital. Other investors include Phoenix Suns and Boston Celtics owners and management, as well as existing backers such as Accomplice and PearVC. This funding brings the total value of the two-year-old company raised since its inception in 2019 to $ 50 million. Accomplice and Greycroft co-leaded the $ 7 million Series A last June.
Simply put, cardless Helping consumer brands launch credit cards “very quickly and easily” by hProgram creation, card underwriting, lending, issuing and brand customer service. This quarter, startups launched three digital programs. NBA Cleveland Cavalier, British football team Manchester United, and Florida-based Major League Baseball team Miami Marlins.
The company is trying to modernize the entire concept of co-branded credit card programs. According to Cardless co-founder and president Michael Spelfogel, only one of the 200 companies currently in the United States is from a company that is less than 20 years old.
“There are nearly 200 brands that use traditional cards, but they’re often older legacy businesses like Costco and Sams,” he told TechCrunch. “We want to connect people with the brands they love most and build fan relationships with those brands.”
The cardless customized rewards program supports very specific demographics that “actually appreciate the value the brand offers,” Spelfogel added.
“Our first program helped fans get their signatures and experiences that money couldn’t buy,” he said. The company plans to announce more than a “number” of programs this year, doing so “in a few weeks” compared to traditional publishers, which take months to a year or more to publish a similar program. It states that it can be done.
These loyalty programs include digital apps and countless virtual cards.
Cardless is about to shake a huge market.ConsumeWhile credit cards generated an estimated $ 150 billion in revenue for traditional banks in 2019, start-ups earned only a small portion of their value. Cardless works with bank issuers to provide customers of these brands with easy card issuance and custom digital credit programs to help brands and tech companies take over a larger part of the huge market. The purpose is to support.
“This round of funding is not the beginning of the long-awaited transition to digital-focused card issuance, but the result,” said Cardless CEO Scott Kazmierowicz in writing.
Cardless is not limited to working with sports brands.
“We are committed to supporting the superusers of today’s influential brands in a variety of areas,” says Spelfogel. “Cardless puts our customers first by eliminating fees and providing transparent pricing for responsible products.”
Andrew Steele of Activant was impressed with Cardless. Ability to enhance and execute “unique” credit card programs “for top-notch and innovative brands” just two years after launch.
“Most brands are restricted from launching innovative credit card programs due to restrictions from existing providers,” he added. “It has become clear that Cardless can transform and expand one of the largest markets for digital payments, and that we are in the early stages of what we can do.”
Cardless raises $40M to help more brands launch custom credit cards – TechCrunch Source link Cardless raises $40M to help more brands launch custom credit cards – TechCrunch