Fintech Cardless Faucets Amex Network

Dive card:

• Cardless, a San Francisco-based fintech that develops co-branded credit cards in physical and virtual forms, is partnering with American Express to launch credit cards on the New York-based card company’s network, the two companies said Monday.
• The tie-up means brands can create digital credit cards via Cardless’s platform that come with benefits and security features that American Express offers, according to a press release. The card has both companies’ logos.
• A virtual card will be added to consumers’ mobile wallet, and a physical card will be sent to them after they apply on their mobile phone through the Cardless app, according to the release. Cards are issued by First Electronic Bank, and cardholders manage their accounts through the Cardless app.

Diving Insights:

Cardless, founded in 2019, has raised about $50 million in venture funding, a spokesperson said. Amex’s investment arm, Amex Ventures, has made a “significant investment” in Cardless. Amex would not share that investment amount.

The fintech “offers customers a seamless digital-first experience, from when they apply for their card to when and how they choose to redeem their rewards,” Michael Spelfogel, the startup’s president and co-founder, said via email.

Cardless offers co-branded credit cards with professional sports teams such as the NBA’s Cleveland Cavaliers and Boston Celtics, as well as the British soccer team Manchester United. The fintech startup has also launched co-branded cards for LatAm Airlines.

By connecting Amex, Cardless’s customers “will have access to an even wider range of co-branded card partners, redemptions and benefits” along with Amex purchase protection and benefits related to shopping, travel, dining and entertainment, Spelfogel said.

Brands want to increase engagement with customers and personalize their experiences, and Amex sought it work with Cardless “because they help brands deepen their relationships with their customers,” William Stredwick, Amex’s general manager of its global network services in North America, said in an email.

“Our agreement with Cardless is yet another way we are working with fintechs to continue to increase the scale and relevance of the American Express network,” Stredwick said via email.

In another partnership, Amex announced US expansion of the collaboration with the payment and banking technology company i2c in April. The two collaborated to create a platform that allows fintechs and financial institutions to more quickly launch cards on Amex’s global payment network and take advantage of the benefits Amex offers. As for the new tool, the company Abra launched the first crypto rewards credit card on Amex’s network in June.