Home / SmartTech / Point wants to add credit cards to debit cards – TechCrunch

Point wants to add credit cards to debit cards – TechCrunch



Point, a new challenger bank in the United States, is launching an invitation system publicly today. While Point technically provides a bank account, the company focuses on rewards associated with a debit card.

“I started Point as a solution for everything that is frustrating and complicated about credit cards. The incentives between credit card companies and cardholders are misaligned, ”said Patrick Mrozowski, co-founder and CEO of Point.

When Mrozowski got a credit card for the first time, he spent a lot of money to reach a certain spending level and unlock the sign up bonus. At the end of the month he had credit card debt for no good reason.

“What would American Express look like today?”

; he says to summarize Point’s vision. It comes down to two important principles – taking responsibility for your budget so you don’t get into debt and unlocking rewards from brands that you actually interact with.

Many challenger banks want to offer the sub-banks a simple banking experience. Point does not have the same positioning. Creating a points account is more like joining a membership program.

When you register, you will receive a debit card with a certain level of insurance because it is a Mastercard World debit card. You can expect travel cancellation insurance, rental car insurance, purchase insurance, etc.

As the name of the startup suggests, you get points with every purchase. You get 5x points for subscriptions such as Spotify and Netflix, 3x points for groceries, grocery deliveries and carpooling, and 1x points for everything else. Points can be redeemed for dollars – each point is worth $ 0.01. In addition, Point will create a feed with offers with discounts, content, events and more.

Because of its premium positioning, Point is not free. You must pay $ 6.99 a month or $ 60 a year to join Point. Point does not charge foreign transaction fees.

You can use Plaid to connect your Point account to another bank account. You can top up your account with ACH transfers. Point works behind the scenes with the Radius Bank for the banking infrastructure, a bank insured by the FDIC.

The company announced earlier this month that it has collected a $ 10.5 million Series A-led by Valar Ventures, which also includes Y Combinator, Kindred Ventures, Finventure Studio, and Business Angels.

Credit: Point


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