Point raises $ 46.5 million for its premium debit card – TechCrunch

Challenger Point Bank has raised a $ 46.5 million Series B round. The company offers an account associated with a debit card. And the startup is positioning itself as a premium debit card company and trying to offer credit card rewards with debit cards.

Valar Ventures, existing investor Peter Thiel, invests more money in the company and leads the Series B cycle. Other investors include Breyer Capital, YC Continuity and Human Capital. The company raised a Series A round of $ 10.5 million 18 months ago and a funding round before that, which means Point has raised $ 60 million in total.

Point wants to build the anti-credit card. The company tries to keep the best of credit cards, but leaves behind what isn’t. Many people think of credit cards as a slippery slope. If you spend too much money without realizing that you are not going to be able to make ends meet, you will pay interest. This interest can even make it harder to pay off your credit card debt.

This is why credit card incentives are both attractive and scary at the same time. If you have enough savings or earn a lot of money, paying your credit card bill won’t be a problem. But it’s not always the case.

Point tells you that you should give up your credit card completely. When you open a Point account, you can top it up with another debit card or set up direct deposits with your employer. It currently costs $ 49 per year to open a points account. You get two free ATM withdrawals per month and you pay no foreign transaction fees.

After that, you can safely spend money with your Point card. You know you have enough money to pay for your purchases because it’s a debit card. Whenever you want to buy something expensive, you have to top up your account first.

Point users earn points with every purchase. You get 5x points on subscriptions, such as Spotify and Netflix, 3x points on food deliveries and carpooling, and 1x points on everything else. If you pay with your Point card, you also get Trip Cancellation Insurance, Car Rental Insurance, Global Travel Assistance, Phone Insurance and New Purchase Insurance.

You can control the Point map from the Point app – you can lock and unlock it whenever you want and you can choose to receive notifications whenever you want. The Point debit card also works with Apple Pay and Google Pay.

With today’s round table, the company plans to hire more people, launch new features, and introduce new products. In other words, don’t expect major changes. But the company now has more money to grow faster.

Image credits: Point

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