FinTech Paydownhero Vehicle Debt: Gasoline Reward Debit
Boston FinTech Paydownhero, which helps customers pay off auto debt, has rolled out a new debit card with 3% cash back, a Press release said.
This will allow users to add cash rewards to their roundups and hopefully pay off car loans faster.
Gas rewards will also nudge users above rising gas prices, which recently averaged above $5 per gallon in the United States.
The company’s goal is to reduce auto debt and increase user savings, the company said.
The release says the startup’s goal is to repay a “full car loan” of up to $50,000 for a new user. The company stresses the importance of its mission in the face of the $1.4 trillion owed by Americans for auto debt in total.
Paydownhero reportedly secured a second capital raise in late 2021, including funds from lead investor Mucker Capital, a Los Angeles venture capital firm, among others.
“Cars are central to most families’ lives,” said Ken Sargavakian, CEO and co-founder of Paydownhero. “Our goal is to help users manage one of life’s most expensive living expenses. Your car expenses shouldn’t be a mystery. The experience of paying off debt, saving money, and enjoying rewards should be frictionless.
Meanwhile, Erik Rueda, CPO and co-founder, said the debit card and cash rewards “will help users manage the big expenses of car ownership and the planned developments will add even more features to support financial goals”.
Companies that help repay loans are doing well these days. Caribou, another company focused on auto loan repayments, recently completed a Series C funding round with $115 million, bringing its valuation to $1.1 billion.
See more: Auto FinTech Caribou valued at $1.1 billion after $115 million funding round
The new capital will be used to invest in its platform, adding new products.
Caribou was formerly known as MotoRefi and connects car owners with lenders to offer better interest rates, giving customers access to the tool to compare insurance policies.
Kevin Bennett, CEO, said the company’s goal was to “put people in control of their automotive finances, saving them thousands of dollars in a quick and easy process.”