Cardless, a fintech known for co-branded credit card solutions, announced a $30 million investment round led by Activant Capital, along with participation from investors such as Mischief (the fund co-founded by Plaid’s Zach Perret), Industry Ventures, Thayer Ventures, Assurant and Amex Ventures.
This reportedly brings Cardless’ total equity funding to date to more than $90 million.
Despite industry challenges such as rising interest rates and inflation, Cardless reported that it has seen revenue growth since the start of 2023.
The funding will support the company’s continued development of co-branded credit card and loyalty products, “ongoing talent hiring in engineering and operations, and expansion into major retail, e-commerce, and SMBs.”
Cardless explained that it powers co-brand cards on all three of the largest global payment networks: Visa, Mastercard, and American Express.
Michael Spelfogel, Co-Founder and President of Cardless said that these brands chose them because of their “differentiated approach to the entire co-branded card experience.” They also claimed that from embedded servicing to leveraging a brand’s data for personalized sign-up offers, Cardless delivers an experience that other “cobrand-focused banks and fintechs cannot match.”
In the past year, the company has tripled “its Gross Transaction Value (GTV) and increased its Annual Recurring Revenue (ARR) by fivefold.”
Cardholder numbers have doubled in the last six months, and its premium co-branded cards are averaging “nearly 20 transactions per month, reflecting strong top-of-wallet behavior.”
With a presence working with brands across four continents, Cardless continues to focus on co-branded card innovation and growth.
This year, Cardless continued to expand its portfolio of co-branded credit cards with a series of launches.
The company partnered with airlines like Avianca and Qatar.
These additions build on Cardless partnerships with LATAM and TAP Air Portugal, bringing their total number of airline co-branded partners to four.
Cardless ventured into the business and e-commerce space by partnering with Alibaba to introduce its business credit card, designed for small and medium-sized businesses.
As noted in the update, Cardless partners with brands to design and manage co-branded credit card programs.
The company’s seamless digital experience and tech enable personalized rewards and enhanced customer benefits.
