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The Green SheetGreen Sheet

The Green Sheet Online Edition

November 22, 2021 • Issue 21:11:02

New Products

Virtual card + SaaS to help consumers build credit

Product: Grow Credit
Company: Grow Credit

Grow Credit, a black-owned financial inclusion platform, partnered with Mastercard to help underserved consumers leverage subscription payment histories to build credit on Equifax, Transunion and Experian. The service lowers barriers to entry with a Mastercard product issued by Sutton Bank exclusively designed for subscription payments, the company stated.

Joe Bayen, CEO and founder at Grow Credit, described the company as a financial inclusion platform. "We help consumers establish credit, using a Mastercard that is restricted to only paying subscriptions, such as Netflix, Hulu and mobile phone carriers," he said. "The limited usage Mastercard reports on-time payments to the credit bureaus and acts like a regular charge card with balances that can be paid in full every month."

Credit-building tool for consumers

Bayen noted that Grow Credit accounts are structured as installment loans accessed through a Grow Credit Mastercard. The virtual card processes subscription payments from qualified SaaS-based companies, he stated, adding that consumers can easily apply to the program through the company's iOS and Android apps or on the company's website.

Once approved, users can update their payment method at existing subscription providers and join a new service using the card as their payment method, Bayen said. When Grow Credit accounts are repaid in full monthly via electronic (ACH) payment from a linked bank account, the company will then report users' Grow repayments to TransUnion, Experian, and Equifax, giving customers an opportunity to demonstrate positive repayment history and build credit.

Bayan stated that Grow Credit customers in need of basic credit can choose a freemium business model, and paid subscription plans are available for consumers who are planning to buy higher ticket items, such as auto and home purchases. Tiered pricing plans are all available on Grow Credit's website, he added.

Value-added resource for ISOs, ISVs

Grow Credit also wants to work with a variety of SaaS service providers, financial institutions and merchant acquirers to drive financial inclusion in communities. The Grow Credit platform can significantly reduce employee turnover while improving individual credit scores and offering exclusive discounts on popular subscription services, Bayan stated.

"Grow Credit users have boosted credit scores by an average of 51 points over a 12-month period," Bayen said. "This includes users who came into the program with no credit whatsoever and were able to achieve credit scores ranging from 620 to 720, after nine months of consistent bill payments."

Long-term, sustainable growth

Bayen mentioned that Grow Credit has grown its monthly revenues by 2,000 percent since it launched its platform in November 2020, and in September 2021, it completed a $106.3 million seed round, with $6.3 million in equity financing from multiple investors and $100 million in debt financing from Arena Investors LP. The company will use these funds and a strategic investment by BillGO to leverage the BillGO platform and biller network to enhance product offerings and promote consumer financial health, he added.

Committed to financial literacy, Grow Credit provides weekly financial education content to its user base. The firm has also deployed an employee benefit initiative and partnered with College Hunks Moving, a $150 million revenue private equity-backed company, which offer Grow Credit to its employees as a recruitment and retention tool.

Bayen thanked College Hunks Moving, former NBA star Baron Davis and NFL Hall of Famer Ronnie Lott for investing in Grow Credit, stating they will help increase awareness of the company's financial inclusion platform that caters to consumers with no credit or thin credit files. "According to Experian, there are over 100 million consumers with no credit," Bayen said. "Grow Credit is helping thousands of people, and we're fortunate that Mastercard joined us as a strategic partner to further validate the model." end of article

Website: www.growcredit.com Contact: partnerships@growcredit.com

The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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