Custom Credit Card Firm Cardless Announces $40 Million Funding Round

Home » FinTech » FinTech News » Custom Credit Card Firm Cardless Announces $40 Million Funding Round

Custom Credit Card Firm Cardless Announces $40 Million Funding Round

A FinTech that helps brands create their own custom credit card offerings has just closed a major investment round. This week, Cardless announced that it has raised $40 million. The Series B was led by Activant Capital while previous investors such as Accomplice and Pear VC also participated alongside a few individuals. Since launching in 2019, the company has now raised a total of $50 million, with the most recent round being a $7 million Series A last year.

Cardless is aiming to make it easier for brands to launch tailored and unique rewards credit cards. Currently, the company offers cards aimed at fans of the Cleveland Cavaliers, Miami Marlins, and Manchester United. Each of these options combine everyday rewards potential with exclusive, fan-centric perks.

For example, their latest offering — the Miami Marlins card — earns 5 points per dollar spent on retail and concessions at loanDepot Park, 5x points on Marlins tickets, 3x points on dining, food delivery, gas, and drug store purchases, and 1x points on everything else. These points can then be redeemed for statement credits at a rate of 1¢ per point or can be used for Marlins gear gift cards at a rate of 1.25¢ per point. Additionally, points can be transferred to Home Run Rewards for premium items and experiences, with 10 credit card points converting to 1 Home Run Rewards point.

Discussing the idea for Cardless and the opportunity it addresses,  Cardless co-founder and president Michael Spelfogel told TechCrunch, “There are close to 200 brands with traditional cards but they are often old legacy businesses such as Costco and Sam’s [Club]. We want to connect folks with brands they love most, and elevate fans’ relationships with those brands.” According to Spelfogel, the company can create and launch new products in a “matter of weeks” whereas traditional rewards cards could take months or more to develop and debut. Although Cardless’s initial partnerships have all revolved around sports, Spelfogel says the company intends to expand beyond this focus, noting, “We’re committed to supporting the super users of today’s influential brands across a variety of verticals.”

It’s worth pointing out that Cardless’s rise comes as competition among credit cards has reached a fever pitch. However, while most card products may target larger demographics such as “frequent travelers,” Cardless’s ability to reach niche markets could prove to be a winning strategy going forward. With a few major franchises already behind them and now an extra $40 million dollars in their coffers, Cardless seems poised for a breakout as the economy — and the experience economy — come roaring back.

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Renters Loyalty Program and Credit Card Bilt Rewards Raises $60 Million

Just three months after debuting, Bilt has announced that it's raised $60 million in a growth fund round. Investors include the likes of Wells Fargo and Mastercard as well as a group of real estate owners including Blackstone, AvalonBay Communities, Douglas Elliman, Starwood Capital Group, and several others. Launched earlier this...

Visa Adds New Cardholder Benefits to U.S. Consumer Credit Cards

When most consumers shop for a new credit card, they likely look at the rewards and perks that the specific card has. However, in addition to these benefits, customers may not be aware that their card could unlock additional privileges. For example, Visa has just announced new offers available to...

Mastercard Acquires Cryptocurrency Intelligence Company CipherTrace

Over the past few years, cryptocurrencies and blockchain technology have steadily become more mainstream. At the same time, they've also faced criticism and regulatory scrutiny. Now, in a bid to make digital currencies safer and more trusted for all, Mastercard has acquired the firm CipherTrace for an undisclosed amount. CipherTrace...