Point Card, the “high-reward” debit card, reveals that it has finalized a Series B round that was led by Peter Thiel‘s Valar Ventures.
Other investors in Point Card’s latest investment round include Breyer Capital, YC Continuity, and Human Capital. Point completed a $10.5 million Series A round in March of last year. The company’s most recent fundraise brings its total funding to $60 million (to date).
The average Millennial has more than $4,000 in credit card debt, and with over half or 50% of Millennials (52%) stating that they would prefer to use debit over other forms of payments, Point’s business model “serves a clear gap in the payments market,” the announcement noted.
As stated in a release, this funding round will “allow the company to continue growing its team, expand features, and build a more extensive product suite.”
Point CEO and Co-founder, Patrick Mrozowski, remarked:
“Point is bringing the high-end credit card experience to the debit generation. We know that younger generations are moving away from credit cards, and we are proud to be the first payments company that truly listens to its younger users and provides them with something delightful and new.”
Patrick added:
“We are so excited to announce our Series B funding round today to bring a superior debit experience to Gen Z and Millennials, who have been massively underserved by legacy banking institutions with clunky debit cards with no rewards, or credit cards that trap them into debt.”
Point’s co-founders, Patrick Mrozowski, Kenan Pulak, and former Apple designer Sid Parihar, launched the firm back in November 2018 in San Francisco. The co-founders went on “to complete Y Combinator with the mission to elevate the spending experience by introducing a revolutionary card to bring high value cash-back rewards to debit,” the update noted.
Jim Breyer, CEO of Breyer Capital, remarked:
“We believe that Point is the future of spending for the next generation of consumers and that Point has unlocked a compelling opportunity to reimagine how we spend our money every day. We are excited to partner with the company as they continue to grow rapidly and aspire to put Point Cards in millions of wallets.”
Point Card is reportedly the first debit card to provide special perks “on par with elite credit cards, providing cardholders unlimited cash-back by earning points on every purchase, alongside extensive travel protections and purchase insurance benefits.”
As noted in the release shared with Crowdfund Insider, cardholders have access to various rewards via Point’s platform through purchases that Millennials and Gen Z are currently making in their daily lives, such as monthly subscriptions like Netflix and Spotify, and rideshare and food delivery services like Uber and DoorDash. Through their rewards and benefits program, Point provides the average cardholder “with $1,230 in value annually.”
How to use:
You need to download then Point App and then Sign Up: Just download the app and choose the card edition “you want delivered to your door,” the announcement explained while adding that you complete sign up by “entering your personal information including your name and address.”
Card Delivery: “Once you create an account, Point will send you the physical card in the mail within 1-2 business days and you can use your Virtual Card instantly,” the update noted.
Fund Point Card: “Move funds into your Point account with instant debit card transfers and easy direct deposits. To make it simple, you can stay topped up with auto transfers.”
And Go: “Use your Point Card, enjoy the seamless Point App experience, and earn points on every purchase, instantly redeemable for cash-back.”
As mentioned in the release, Point Card is a debit card that aims to replace high-interest credit cards by “bringing the rewards experience to debit.”
Point App and Point Card aim to offer a user experience that is comparable to that of a “high-end credit card, but without the risk of debt and high interest payments.” Point Card has been “custom engineered for form, function and durability.” Point Card and Point App have been designed to offer a “transparent, personalized, and delightful spending experience.”