Cardless, a credit card platform that empowers product-first companies to create and manage their own credit cards, has successfully closed a $60 million Series C funding round, bringing its total funding to over $170 million. The latest round was led by Spark Capital, a venture firm known for supporting transformative companies like Slack, Twitter, and Coinbase. Noteworthy in this round is the backing from Activant Capital, Industry Ventures, Pear VC, and others, adding to Cardless’s momentum in reshaping the credit card industry.
Will Reed, a General Partner at Spark Capital, highlighted Cardless’s innovative approach to embedded financial services, emphasizing a significant revenue growth fueled by strategic partnerships with well-regarded brands, including Coinbase and Bilt. Reed stated, “Cardless has the team, product, and momentum to transform and capture a significant share of a $200B industry.” He sees this financing as a pivotal moment for Cardless as it transitions from building its platform to rapidly scaling operations.
The Cardless platform provides an array of APIs and pre-built components that cover the entire credit journey, allowing companies to control their customer interactions from application to cardholder experience without incurring the associated risks and complexities. The platform leverages customer data and artificial intelligence to facilitate smarter decision-making, accelerated iterations, and more relevant financial offerings. Remarkably, Cardless enables the launch of new credit cards in just 90 days, in stark contrast to the lengthy 18-month timelines typical of traditional banks. The company’s full-service team handles essential functions such as underwriting, compliance, offer design, and cardholder support, ensuring that brands retain control over their most important asset: customer relationships.
Cards issued through Cardless have demonstrated a remarkable 400% year-over-year growth in transactions, with customers spending substantially more than they do with cards from legacy banks. Prominent clients currently utilizing Cardless services include Bilt, Coinbase, Qatar Airways, and Alibaba.
Michael Spelfogel, Co-Founder and President of Cardless, expressed that traditional co-branding partnerships have often underperformed, stating, “Cardless puts companies in control to deepen loyalty, boost revenue, and deliver rewards people actually use.” He envisions a future in which financial services become embedded within beloved brands, positioning Cardless at the forefront of this transformative movement.
Customers have praised the Cardless platform as a game-changer. Ankur Jain, Founder and CEO of Bilt, noted that “Cardless’s technological capabilities and focus on customer experience made them the perfect partner” for Bilt Card 2.0. This partnership is anticipated to significantly enhance how Bilt members earn and utilize rewards in their everyday lives.
The influx of capital from the most recent funding round will allow Cardless to expand its current card programs, launch new offerings with leading brands, and develop a wider range of financial products tailored specifically for their user bases. This strategic growth aims to further disrupt the credit card industry and enhance customer loyalty for companies partnering with Cardless.
