Pesto, a FinTech innovating in the pawn lending space, has announced the launch of its first card product and secured $11m in funding.
Securing funding from top-tier investors such as Activant Capital and Plural among others, Pesto embarks on a quest to offer a sustainable solution for Americans who are seeking to rebuild or establish their credit profiles at competitive rates.
Pesto is not your average FinTech firm, they’re reimagining the way customers interact with credit facilities. Their product, the Pesto Mastercard, issued by Continental Bank, is the first credit card to enable customers to leverage their assets as collateral for credit. Pesto customers can send their assets to the company and are then issued a credit card based on the value of these assets, regardless of their credit score. The innovative offering positions Pesto Mastercard with rates similar to existing credit cards, providing a substantial respite from the higher interest rates that are typical of pawn and payday loans.
The capital raised in this funding round will be channelled towards expanding Pesto’s customer base across the United States. The company has pinpointed Atlanta and Los Angeles as the initial areas of focus for this expansion.
Pesto CEO James Savoldelli noted, “Our first product, Pesto Mastercard, offers interest rates at only a fraction of today’s alternatives, often 90% less than many equivalent pawn loans. It’s a paradigm shift in the credit card market, with the potential to truly democratize credit.
“Pesto is on a mission to help all Americans find an alternative to high-interest rate loans by providing a straightforward way to secure liquidity and build credit through their assets without having to sell them.”
Pesto was established in 2020 as a direct response to the high-interest-rate loans that are commonly relied upon by over 6 million underbanked Americans. The company was founded by Savoldelli after studying financial inclusion and observing how consumers with few options resort to using pawnshops for repeat borrowing.
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