X1 Credit Card Prepares for Public Launch, Raises $25 Million
Nearly two years ago, a new “smart credit card” called X1 was teased to consumers. Now, the card’s wide launch to the general public is nearly upon us. Ahead of that, the company behind the product has also announced an impressive investment round.
This week, X1 Card revealed that it had raised $25 million. The Series B was led by FPV Ventures, while other participants included Craft Ventures, Spark Capital, Harrison Metal, and SV Angel and others — including the EDM/pop duo The Chainsmokers. In total, X1 has now raised $45 million.
The X1 card began rolling out to a number of customers on its waitlist last fall. Despite its limited reach so far, the company says it’s still on track to hit $1 billion in spending this year. Furthermore, it estimates that purchases made using the X1 currently occur every five seconds.
As for what the X1 credit card offers, one of its selling points is a higher credit limit — up to five times higher according to the card’s landing page. This perk can then help customers keep their utilization low and, in turn, raise their credit scores. Also notable is the card’s metal design, which weighs a reported 17 grams. Plus, the card carries no annual fee.
In terms of rewards, the X1 earns 2 points per dollar spent on purchases by default. However, those who spend at least $15,000 on the card per year will earn 3x points instead. Plus, when users successfully refer new customers, they’ll earn 30 days of 4x rewards on purchases. Interestingly, while X1 previously noted some of the brands customers could redeem points at, their latest press release states that points can also be used for cashback.
Speaking to the idea behind X1, the company’s co-founder Deepak Rao said in a statement, “The credit card industry has long been overdue for disruption, so we set out to build the world’s smartest credit card for a new generation of digital natives like ourselves,” said Deepak Rao, co-founder of X1. “We’ve modernized the entire credit card experience, from limits to rewards to smart tech-driven features, and created a product that consumers truly love. We’re incredibly honored by the warm reception our card has received so far and thrilled to be partnering with FPV Ventures’ Wesley Chan, a brilliant product-driven founder and early investor in consumer fintech disruptors like Robinhood.”
Ever since the X1 card was announced, it’s been highly anticipated. Thus, it’s exciting that the card will soon finally be available to the general public. Additionally, it’s good to know that the card will offer cashback in addition to the brand offers — something that was always a big question surrounding the offering. So, while there are a growing number of other 2% flat rate options, the X1 Card could be a good pick for those who want to try something a bit different and have the potential to earn even greater multipliers when they complete certain tasks.
Also published on Medium.