Unit’s banking platform as a service gets into the payment card game • TechCrunch

If bank fintech as a service Unity does its job well, it will be ubiquitous among businesses and simultaneously have a name unknown to the end user. The company offers businesses a way to integrate financial services into their product – and after previously launching debit cards, Unit is officially breaking into the payment card game.

Unity customers can now use the startup’s API to create personalized payment cards for their own end users. Customers can offer their customers a charge card, credit card, revolving loan or any other credit product offered by Unit’s banking partners. In the back, Unit will take care of card printing, compliance and, once the card is used, transaction tracking as well.

According to the co-founder and CEO Itai Damticards are the fourth and final pillar of Unit as a venture capital-backed company, adding to its products in the areas of debit, bank accounts and payments.

Just six months ago, Unit announced that it raised $100 million Series C at a valuation of $1.2 billion, bringing its total capital raised since inception to nearly $170 million.

Charge cards, which are more popular than credit cards for small businesses, allow Unit to allow customers to create and offer loan products, even if the startup isn’t a lender itself. . “Once you can store money for people, you can move money for people, and you can give money to people, it’s the full spectrum of banking that all these software products can use to launch into their environments,” Damti said.

Picture credits: Unity

While Unit’s new line of cards looks competitive with Brex and Ramp, valued at billions of dollars, I had the same thought, and it’s a bit more complicated. Instead of selling a map to startups like its well-capitalized competitors, Unit sells its customers a way to create custom maps for their own end users. Let’s go for a classic B2BC model instead of a B2B model.

“If you are a company that sells to construction companies, instead of your customers finding other solutions in the market, you can simply integrate [lending] in your software,” Damti said. “We are not in competition with [Brex and Ramp] itself, but we allow companies to essentially offer an equivalent product and to do so in an integrated way.

The unit’s expansion sits differently during a particularly tough economic time for fintech companies such as Chime and band, which has made layoffs in recent weeks. Loans Unit VP David Sinskywho recently joined the company after a seven-year stint at Opendoor, explained that the new product could help its customers introduce a whole new range of income through interchange fees.

“There may be less VC money to spend on Google and Facebook ads, but we work with companies that have built differentiated software,” Sinsky said. “And I see Unity [as an] opportunity to better serve these users and improve the economy of their unit. Unit claims that a card swipe transaction will generate 0.5% more redemption revenue when done with a credit card compared to a debit card.

Damti added that there is “less red ocean in vertical finance…there is a tremendous opportunity because they have data, they have distribution and they can be very effective underwriters who are lenders. very effective in their vertical”.