Credit card startup Imprint beats big banks for Rakuten co-brand deal

A new player is creating waves in the industry dominated by big banks.

PrintThe 5-year-old credit card startup defeated banks in a competitive bid process for a new co-branded card from online shopping platform Rakutten, CNBC has learned.

The deal, which has been announced later on Tuesday, is the most recent indication that the imprint is receiving traction in the co-branded credit card industry.

New York -based startup also raised $ 70 million in additional capital, increasing its evaluation 50% to less than a year to $ 900 million Rear roundAccording to Daragh Murphy, CEO of the impression.

Credit card participation with retailers, airlines and hotels is some of the hottest election deals in the finance. Brands often undergo extensive bidding procedures to select card company, while companies compete for the right to issue cards to millions of loyal customers. The biggest players in the industry are included JPMorgan ChaseCapital One, City group And Synchrony,

Murphy said in an interview, “We are talking to Fortune 500 companies about being our partner and they are choosing us on Barclays, on the US Bank, on Sinkoni.” “We have to walk in this way and talk that we are a big, important company, even though we still have a startup ethos.”

This is why the company recently raised capital, which was brought up to $ 330 million, most of which are held on the balance sheet of the firm according to Murphy. They help the funds to show potential partners that have the power to live in the impression, he said.

Murphy said that credits from banks, including Citigroup, Trite and Mizuho, have about $ 1.5 billion in the impress, which uses the card to expand the loan to customers, Murphy said. There is also a startup Behind the card From brands including Eddie Bauur, Brooks Brothers and Turkish Airlines.

In case of rakten card, the impression is dependent on American Express The network, which allows users to obtain the purchase safety and other allowances. It is using the first electronic bank to help in issuing cards.

“Although we are not a regulated bank, we are effectively building a bank,” Murphy said. “We have to do all the same things as a bank. We are a capital market company; we are a compliance company; we are a risk and credit and fraud company; we are a technology company.”

Murphy stated that to get a reconnaissance in the market for co-branded cards, which could be used anywhere, the impression decided that it would focus on a spontaneous digital experience for customers. This requires technology integration that is difficult for installed players who trust third-party companies Ficerv To complete the transaction, he said.

“Banks are in trouble because they are not the owners of the technology that follows the credit card,” Murphy said. “Each credit card in your wallet, whether it is chase, amex or city or synchron, rely on two or three different third parties to provide electricity to technology.”