Vehicle Debt FinTech Paydownhero Debuts Gas Rewards Debit Card

Boston FinTech Paydownhero, which lets customers pay off auto debt, has rolled out a new debit card with 3% cashback gas rewards, a press release says.

It will let users add cash rewards to their round ups and hopefully pay car loans off faster.

The gas rewards will also buoy users above the rising gas prices, which recently hit an average of above $5 a gallon in the U.S.

The goal of the company is to cut auto debt and add to users’ savings, the company has said.

The release says the startup’s goal is to pay off an “entire car loan” up to $50,000 for a new user. The company emphasizes the importance of its mission in the face of the $1.4 trillion owed by Americans for auto debt in total.

Paydownhero reportedly got a second capital raise in late 2021, including funds from lead investor Mucker Capital, a Los Angeles venture capital firm, among others.

“Cars are central to most families’ lives,” said Ken Sargavakian, CEO and co-founder of Paydownhero. “We aim to help users manage one of life’s most costly ongoing expenses. Your car expenses shouldn’t be a mystery. The experience of paying down debt, saving money, and enjoying the rewards should be frictionless.”

Meanwhile, Erik Rueda, CPO and co-founder, said the debit card and cash rewards will “help users manage the major expense of car ownership and anticipated developments will add even more features to support financial goals.”

Companies working with helping to pay off loans are doing well these days. Caribou, another company focused on auto loan payments, recently completed a Series C funding round with $115 million, making its valuation $1.1 billion.

See more: Auto FinTech Caribou Valued at $1.1B After $115M Funding Round

The new capital will be used to invest in its platform, adding new products.

Caribou used to be known as MotoRefi, and connects car owners with lenders to offer better interest rates, letting customers access the tool to compare insurance policies.

Kevin Bennett, CEO, said the company’s goal was “putting people in control of their auto finances, saving them thousands of dollars with a fast and easy process.”