Credit card company FS Card has closed a $150m in a new financing round to help support its portfolio growth.
Washington DC-based FS Card is a credit card platform that uses machine learning algorithms to offer borrowers with affordable small dollar loans. The company’s ‘Build Card’ offering gives customers access to loans, and has nudges, incentives and rewards that help to encourage a borrower to improve credit ratings by paying debt off faster.
Over the past year the company has expanded its ‘Build Card’ portfolio by almost 500 per cent.
This capital will help the company to expand access to traditional credit and become used more by small-dollar loan customers.
FS Card founder and CEO Marla Blow said, “At FS Card, we are re-imagining the small dollar lending landscape and working to meet the needs of a customer base that has been poorly served by existing credit options.”
Last month credit card solutions platform Petal raked in $3.6m in a seed funding round to help with the product’s launch. Investors to the round included Brooklyn Bridge Ventures, Afore Capital and Rosecliff Ventures.
The US payments sector is seeing a rise in funding in Q3 2017, following the significant drop in capital deployed in Q2, which ended a four-quarter increase. Funding to the sector in Q3 reached $550m, which is still around $192m less than invested in the opening quarter of the year.
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