The Credit-card-as-a-service company that provides credit cards as a service Deserve has received a new round of funding from Visa, joining other well-known supporters such as Mission Holdings, Mastercard, Ally Ventures, Goldman Sachs Asset Management, and Sallie Mae. Following the success of its crypto rewards card offered in cooperation with BlockFi, Visa has made an investment in Deserve.
Deserve has received funding from Visa
According to a press release issued on Wednesday, Visa made the investment to assist Deserve to expand its services to more banks, FinTechs, and financial service providers (Oct. 27).
Deserve, which was launched in Silicon Valley in 2013, converts credit cards into mobile-centric software and takes a mobile-first strategy, allowing users to apply for and activate their cards in their digital wallets in only a few minutes.
Deserve co-founder and CEO Kalpesh Kapadia remarked, “This investment supports the industry’s embrace of a digital-first, embedded approach driven by APIs and SDKs.” “We’re changing credit cards into software that resides on mobile devices rather than in wallets,” says the company.
In 2020, Deserve has been selected as a launch partner for Visa’s FinTech Fast Track program. Deserve partnered with BlockFi and, in partnership with Visa, launched the first credit card featuring Crypto incentives as part of the program.
According to Kalpesh Kapadia, transaction volume for the card is reaching $2 billion on an annual basis, and BlockFi customers are expected to spend around $30,000 per year, 50 percent more than normal credit cardholders.
AJ Shanley, Visa’s vice president of crypto, said, “Visa’s Crypto team teamed with BlockFi and Deserve to establish a crypto rewards credit card that would appeal to crypto enthusiasts and expose crypto to the mainstream”.
Shanley went on to say that the card was well accepted, and that funding Deserve will enable the two firms to collaborate to improve the “adoption of crypto-powered card systems.”
According to the press release, Deserve was one of the first credit-card-as-a-service software platforms to employ Visa’s immediate issuance, which provides strong security and ease of usage. Deserve’s mobile-first technology powers bank and FinTech mobile cards, with a unique loyalty program that goes beyond cashback, points, and miles.
Machine learning and alternative data are used by FinTech to give “state-of-the-art underwriting solutions that enhance financial access” to its partners. Deserve provides financial institutions, banks, universities, groups, and brands with white-label and co-branded credit card programs.
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