Reward-based debit card startup Point has closed a $46.5 million Series B funding round led by Peter Thiel’s Valar Ventures. Point is bringing the high-end credit card experience to young millennials floundering in debt, offering a debit card and linked bank account that features a range of premium perk-based benefits.
Point Card provides cardholders unlimited cash-back by earning points on every purchase, alongside extensive travel protections and purchase insurance benefits.
Reward points are geared to the youth market, including monthly subscriptions like Netflix and Spotify, and rideshares and food delivery services such as Uber and DoorDash. The company claims to provide the average cardholder with $1,230 in value annually.
Opening a Point account currently costs $49 per year and comes with two free ATM withdrawals per month and no foreign transaction fees.
The latest funding round follows a $10.5 million Series A raise in March 2020, bringing Point’s total funding to $60 million.
Point CEO and Co-founder, Patrick Mrozowski, says: “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.”
He says the new financing will allow the company to grow its team, expand features, and build a more extensive product suite.
