Cardless hits $30m funding jackpot, powering rapid growth and market disruption

Cardless, a trailblazer in co-branded credit card solutions, has announced securing $30 million in its latest funding round, with Activant Capital leading the investment. This latest influx of capital underscores the fintech’s robust growth trajectory, highlighted by a fivefold increase in annual recurring revenue (ARR) over the past year and a tenfold surge in revenue since 2023. Backed by top-tier investors such as Mischief, Industry Ventures, Thayer Ventures, Assurant, and Amex Ventures, the funding brings Cardless’ total equity raised to over $90 million.

The company’s ability to weather challenges like inflation and rising interest rates has solidified its standing as a leader in fintech innovation. Activant Capital’s co-founder, Andrew Steele, explained that Cardless addresses a significant market gap, offering a cutting-edge embedded platform that caters to both consumers and small-to-medium-sized businesses (SMBs). He noted that prior to Cardless, many of the world’s largest brands avoided launching credit cards due to subpar customer experiences from traditional banks.

Revolutionising co-branded credit card offerings

Cardless has built a reputation for being the only fintech enabling co-branded cards across the three leading global payment networks—Visa, Mastercard, and American Express. Its innovative portfolio includes premium options such as Visa Infinite, a card variant typically reserved for high-value clients.

Over the past year, Cardless has expanded its partnerships with leading global brands, including Qatar Airways and Alibaba. These partnerships reflect the company’s ability to tailor co-branded credit card products that align with its partners’ unique business models. Michael Spelfogel, Cardless’ co-founder and president, remarked that the company’s approach integrates brands’ data for personalised user experiences, such as bespoke sign-up offers. The funding, he stated, will further strengthen their engineering and operations teams to support these high-profile collaborations.

Key milestones and market impact

In 2024, Cardless achieved significant growth, tripling its Gross Transaction Value (GTV) and doubling its cardholder base within just six months. Its premium credit cards are averaging 20 transactions per month, illustrating strong consumer adoption. The company also marked its entry into the e-commerce and business credit space by partnering with Alibaba to develop a card specifically for SMBs.

Globally, Cardless has extended its presence to four continents, collaborating with brands in aviation, retail, and digital commerce. Its co-branded airline partnerships, which now include Qatar Airways, LATAM, Avianca, and TAP Air Portugal, demonstrate its growing influence in the premium travel sector. Qatar Airways, recognised as the “World’s Best Airline” in 2024 by Skytrax, represents a marquee addition to Cardless’ portfolio.

Positioned for continued growth

Experts see the latest funding as a vote of confidence in Cardless’ potential to redefine the co-branded credit card landscape. The company is poised to expand its market share through a combination of innovation, strategic partnerships, and exceptional customer experiences. With a focus on enhancing loyalty programmes and integrating advanced technologies, Cardless is well-positioned to maintain its growth momentum while setting new benchmarks for the industry.