Railsbank, a global Banking-as-a-Service (BaaS) announced on Thursday it has joined forces with Paceline, a retail health and wellness platform, to create a health and wellness credit card. According to Railsbank, the Paceline branded credit card will allow users to earn category-based cash back based on both their physical activity as well as what they spend.
“Paceline card members will earn elevated cash back on health and wellness transactions, and earning boosts when they achieve the weekly fitness milestone on the core Paceline app.”
While sharing more details about the credit card, Dov Marmor, Railsbank Chief Operating Officer (North America), stated:
“Paceline wanted a wholly-embedded experience where a credit card could live in the Paceline app and integrate with all its health-related features. Before CCaaS, that just was not a reality. CCaaS prebuilt the entire infrastructure needed to launch a credit card fast, taking on the heavy lifting such as banking, credit, payments operations, risk management and compliance. It lets Paceline focus on UX, customer experience and differentiating their brand from anything else on the market.”
Joel Lieginger, Paceline Founder and CEO, added:
“Physically active customers spend three times more and are five times more profitable to financial services providers. This scenario presents a huge opportunity to lifestyle brands, and drives lower acquisition costs and higher lifetime value for credit cards and insurance, resulting in better societal health overall.”
Paceline recently secured $5 million through its seed funding round, which was co-led by Propel Venture Partners and Montage Ventures.