Point Card, the premium debit card geared toward millennials and Gen Z consumers, announced on Thursday (Sept. 2) that it has wrapped a $46.5 million Series B funding round.
The round, led by Peter Thiel’s Valar Ventures, brings Point’s total funding to $60 million. The company previously raised $10.5 million in a Series A round last year.
The company, which markets itself to younger customers who would prefer using a debit card to other payment forms, said in a news release that it will use the funding to expand its team and features and construct a more extensive product suite.
“We know that younger generations are moving away from credit cards, and we are proud to be the first payments company that truly listens to its younger users and provides them with something delightful and new,” said Point CEO and Co-founder Patrick Mrozowski.
“We are so excited to announce our Series B funding round today to bring a superior debit experience to Gen Z and millennials, who have been massively underserved by legacy banking institutions with clunky debit cards with no rewards, or credit cards that trap them into debt.”
Point was founded in 2018 in San Francisco by Patrick Mrozowski, Kenan Pulak and former Apple designer Sid Parihar, with a stated mission to “elevate the spending experience by introducing a revolutionary card to bring high-value cash-back rewards to debit.”
Point says it is the first debit card that offers perks rivaling those found with high-end credit cards, such as unlimited cash back from earning points on each purchase, along with travel protections and insurance benefits.
Cardholders can earn reward points “via purchases that millennials and Gen Z are already making in their daily lives, including monthly subscriptions like Netflix and Spotify, and rideshare and food delivery services such as Uber and DoorDash,” the company said.
Read more: Perks and Rewards Pushing Debit Card Usage, Loyalty Higher
It’s not just younger consumers who prefer using debit cards, as PYMNTS’ Next Gen Debt Tracker found last month.
Debit cards have proven to be the most popular payment method among consumers in the U.S., particularly in the last year, as people looked to improve visibility into their finances. Many financial institutions are offering debit rewards in the interest of keeping those cardholders and attracting new ones.
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