The Rise of Co-Branded Credit Cards and Cardless’ $30M Funding Boost
Over 25% of U.S. consumers rely on co-branded credit cards for discounts and rewards from their favorite brands. Yet, despite their popularity, major players like Uber, Starbucks, and Walmart have scaled back their card programs due to underwhelming returns. Enter Cardless, a fintech startup leveraging embedded finance to reinvent co-branded credit cards—and it just secured $30 million in funding to accelerate its vision.
Breaking Down the Funding Round
- Lead Investor: Activant Capital (a returning backer)
- Other Participants: Mischief (co-founded by Plaid’s Zach Perret), Industry Ventures, Thayer Ventures, Assurant, and Amex Ventures
- Valuation: Undisclosed, though Cardless’ last round in 2021 valued the company at $350 million
While Cardless isn’t sharing exact revenue figures, the San Francisco-based company reports 5x growth over the past 12 months, mirroring its previous year’s performance. Its focus remains squarely on the U.S. market, with no immediate plans for international expansion.
What Sets Cardless Apart?
Cardless isn’t the only player in the co-branded credit card space—compe*****s range from fintech disruptors like Marqeta to traditional banks. However, its key differentiator lies in its efficiency and customization:
- Rapid Deployment: Brands can launch fully customized card programs within weeks, integrating applications and management directly into their existing apps.
- Dynamic Rewards: Real-time dashboards allow brands to tweak rewards and track performance.
- Built-In Security: Fraud detection and usage analytics are baked into the platform.
- Future-Proof Features: Lending capabilities hint at potential expansions into BNPL (Buy Now, Pay Later) and other financial tools.
Targeting New and Existing Markets
According to Michael Spelfogel, Cardless’ President and Co-Founder, the company’s current growth stems largely from brands new to credit cards. However, the long-term play involves convincing legacy card programs to switch to Cardless’ more agile platform.
“The credit card space is ubiquitous from the consumer angle, but from brands’ point of view, it is ripe to be disrupted,” Spelfogel notes. “Eleven banks dominate the $77 billion co-branded card industry—there’s massive room for innovation.”
Why Investors Are Betting on Cardless
Andrew Steele of Activant Capital, who led the funding round, highlights the untapped potential:
“Co-branded cards aren’t a niche market—they’re a massive opportunity. Legacy providers simply can’t match Cardless’ speed and flexibility.”
With its tech-driven approach and growing client roster (including Qatar Airways and Alibaba), Cardless is poised to redefine how brands and consumers engage with loyalty-driven credit cards. The question now: Will the market embrace this disruption?
📚 Featured Products & Recommendations
Discover our carefully selected products that complement this article’s topics:
🛍️ Featured Product 1: APE HEAD MOUSE PAD
Image: Premium product showcase
Professional-grade ape head mouse pad combining innovation, quality, and user-friendly design.
Key Features:
- Premium materials and construction
- User-friendly design and operation
- Reliable performance in various conditions
- Comprehensive quality assurance
🔗 View Product Details & Purchase
💡 Need Help Choosing? Contact our expert team for personalized product recommendations!
