What happened?
Cardless, a credit card platform that allows companies to create and launch their own in-house branded credit cards, has successfully secured $60 million in a Series C funding round. The round was led by Spark Capital and brings the company’s total raised capital to over $170 million. Other investors include Activant Capital, Industry Ventures, and Pear VC.
Who does this affect?
The funding will facilitate Cardless’s ongoing growth and its efforts to transform the $200 billion credit card industry. The platform’s streamlined credit card journey is particularly relevant for brands that want to maintain control over their customer relationships while focusing on rewards and engagement. High-profile brands such as Bilt, Coinbase, Qatar Airways, and Alibaba that have implemented credit card programs built on the Cardless platform may be particularly affected.
Why does this matter?
This funding underscores the market potential of embedded financial services. By streamlining the credit card creation process, Cardless is primed to reshape the credit card industry. Additionally, the company’s reported 400% year-over-year transaction growth indicates that consumers are increasingly receptive to brand-specific credit cards over traditional bank-issued cards, influencing shifts in brand loyalty and consumer spending habits.