“Traditional credit bureau scores don’t measure cryptocurrency, which is a disconnect for a lot of young tech executives and entrepreneurs heavily involved in crypto,” said Patrick Mrozowski, CEO of PointCard. PointCard’s new card is marks the latest pivot for the startup, which launched in 2018 and previously offered a Mastercard-branded debit card. The company has raised $60 million to date, most recently with a $46 million infusion in September 2021 from backers including Breyer Capital. The card company’s sponsoring bank is $343 million-asset Chico, California-based Northern California National Bank, doing business as Column N.A.
“The charge card model fits our customers’ lifestyles better than a credit card, because they may spend a lot one month, and not as much in another month — it’s a more realistic approach to how emerging young affluent investors live,” Mrozowski said. PointCard does not perform a hard credit check on Titan applicants, nor does it impose a spending limit. Because it is a charge card, users must pay their balance in full every monthly billing cycle.
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There are no late fees; additional transactions are blocked if customers don’t pay on time, he said. “Traditional credit bureau scores don’t measure cryptocurrency, which is a disconnect for a lot of young tech executives and entrepreneurs heavily involved in crypto,” said Patrick Mrozowski, CEO and co-founder of PointCard, which announced the Titan card this week.
PointCard is part of a new wave of cards like Petal (which caters to consumers with thin or blemished credit histories) that eschew traditional credit histories in favor of alternative data sources such as cash flow, said Brian Riley, director of credit advisory at Mercator Advisory Group. But using a charge card model could present challenges for PointCard by limiting its revenue primarily to interchange, especially because PointCard doesn’t plan to charge any fees other than its annual fee, Riley said. The Titan Visa card offers up to 5X points redeemable for cash or crypto — stored in a custodial wallet — for everyday purchases including electric vehicle charging.
The card’s rewards are heavily focused on cryptocurrency. Like other recent crypto-linked credit cards like the BlockFi Visa and Gemini Mastercard that reward users in crypto purchases, San Francisco-based PointCard’s new Titan Visa card provides crypto as part of its rewards plan. “We started with the idea of a tech-focused debit card, but we changed gears last year as we’ve watched the crypto ecosystem evolve,” said Mrozowski, age 25, a Y Combinator veteran who co-founded a Bitcoin app called Crumbs in 2016.
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