Cardless Secures $30 Million Funding to Expand Co-Branded Credit Card Solutions

Cardless Secures $30 Million in Funding

In a significant move for the fintech sector, Cardless has announced a $30 million growth investment round led by Activant Capital. The company, known for its cutting-edge co-branded credit card solutions, has attracted attention from several prominent investors, including Mischief, Industry Ventures, and American Express Ventures. With this latest funding, Cardless' total equity funding has now surpassed $90 million.

Despite facing industry challenges such as increasing interest rates and inflation, Cardless has achieved an impressive tenfold increase in revenue since early 2023. The fresh capital will be crucial for the company as it continues to develop its innovative co-branded credit card and loyalty product offerings. Additionally, Cardless plans to bolster its talent pool in engineering and operations while expanding its reach into major retail, e-commerce, and small to medium-sized business sectors.

Cardless stands out in the industry as the only fintech company to effectively power co-branded cards across all three major global payment networks—Visa, Mastercard, and American Express. The company has also pioneered the launch of Visa's most exclusive card variant, the Visa Infinite product, through its platform.

Michael Spelfogel, Co-Founder and President of Cardless, expressed his excitement about the growth trajectory, stating, "Over the last 12 months, we've designed products for some of the world's finest brands, including Qatar Airways and Alibaba. These partnerships demonstrate our unique approach to the co-branded card experience, from embedded services to personalized sign-up offers that leverage brand data."

The company has demonstrated remarkable growth by tripling its Gross Transaction Value (GTV) within the past year and achieving a fivefold increase in Annual Recurring Revenue (ARR). Additionally, Cardless has doubled its cardholder base in just six months, with premium co-branded cards averaging nearly 20 transactions per month, indicative of strong user engagement.

In its expansion efforts for 2024, Cardless added several significant co-branded credit cards, partnering with renowned airlines such as Avianca and Qatar, which recently achieved the accolade of World's Best Airline at the 2024 World Airline Awards organized by Skytrax. This expansion further solidifies Cardless' collaboration with existing partners like LATAM and TAP Air Portugal, now totaling four airline partners.

Moreover, Cardless is entering the business credit card arena through its collaboration with Alibaba, aimed at supporting small and medium-sized enterprises.

Andrew Steele, Co-Founder of Activant Capital, highlighted the remarkable potential of Cardless in the fintech industry. "Cardless is targeting one of the largest markets in fintech that has been historically underserved. Previously, leading brands hesitated to launch credit cards due to inadequate customer experiences offered by traditional banks. Cardless has disrupted this norm, collaborating with some of the most sought-after brands to provide a premium service. The company's integrated platform is a game-changer, catering to both consumers and SMBs effectively."

As Cardless continues its journey, the fintech pioneer is set to redefine co-branded credit card solutions, while its innovative technology and commitment to customer experience keep it at the forefront of industry dynamics. For more information, you can visit their website at cardless.com.