Yonder, a credit card startup founded by former ClearScore executives, has announced a 20 million British pound (about $26.3 million) seed round ahead of its launch in the United Kingdom, Financial IT reported Thursday (March 31).
The capital will used to hire staff and build a selection of rewards and features, the company said per the report.
The round was co-led by Northzone and LocalGlobe, with participation from Seedcamp and several angels, including Sharmadean Reid, Marshmallow founders Oliver Kent-Braham and Alex Kent-Braham, and Rio Ferdinand.
Yonder was founded by CEO Tim Chong, who said he struggled to find a quality credit provider as an Australian in London, according to the report. The frustration came despite a successful career and excellent credit score.
“For too long, credit cards have taken advantage of consumers,” Chong said, per the report. “Hidden fees, discriminatory credit scoring, and rewards that belong in the 1990s, all in the interest of bank’s quarterly earnings.”
PYMNTS reported this month that consumers with revolving credit are using it not just to fund spending splurges, but to manage their finances and boost long-term financial freedom.
Read more: Credit Cards Reemerge from the Pandemic as Multifaceted Financial Management Tools
At a time when six in 10 working Americans live paycheck to paycheck, traditional credit is still among the most powerful tools available. But it must be available and used smartly.
With 52% of active credit card users living paycheck to paycheck and “sometimes,” “always” or “usually” revolving their balances, compared to only 20% of active card users not living paycheck to paycheck, credit cards are clearly a budgeting tool for many.
Elan Financial Services Senior Vice President and Market Director Matthew Carpenter told PYMNTS, “As a card issuer, we want to make sure to give card members the resources to make those kinds of decisions and control their financial outcomes through education, resources, budgeting tools, along with giving card members some control in their payments. ”