Railsbank, an Embedded Finance Platform, has announced a partnership with Status Money, a personal finance company, for the launch of credit cards that would automatically invest the rewards earned by the user into crypto.
This is expected to attract a lot of users as Status Money makes the transition from being a purely financial advice company to a financial services company. Those users who are interested in crypto and are lured by the volatility and the returns that it provides, along with the people who want to have some of their investments in the crypto space would be inclined to have this card. This card provides a cashback of 2% that is unlimited and all of this would be automatically invested into crypto which increases the probability of the user being able to get more out of their cards.
Dov Marmor, COO of Railsbank (North America), said: “Credit cards are one of the most commonly used spending mechanisms but over 80% of cards are issued by just the top 10 banks. There are simple reasons for this. Until now, issuing credit cards was an extremely complex and expensive business requiring vast technological infrastructure that meets heavy regulatory compliance. We built Railsbank to enable companies like Status Money to create financial products that offer completely different value propositions, whereas currently big banks can only offer cashback and more cashback. Railsbank offers this at a fraction of the cost and time that would have previously been required.”
The issuing of this range of cards by Status Money has been made possible by the Card-as-a-service platform that has been developed by Railsbank which helps such businesses top quickly launch credit cards and related products and go to market with confidence. This has also helped Status Money to transition into the next level of business by becoming a financial services company and the fact that it combines rewards and crypto should give this product a good edge at a time when crypto prices have been shooting up and this has spurred a lot of interest in crypto from users. This is also likely to encourage the users to use their cards for many purposes for the sole reason of earning their rewards in crypto. The rewards earned in crypto can then be used by the users for trading or can be converted into fiat currencies at the various crypto exchanges within the US.