Hardeep Singh
Hyperface Technologies, which creates co-branded credit cards for eCommerce companies and fintech startups, has secured $1.3 million in funding from Cred founder Kunal Shah, Better Capital, and Global Founders Capital. The Company is responsible for product design and program management. The experienced team of Hyperface helps clients to introduce a card program that banking partners will improve.
A co-branded credit card is one that a bank offers in collaboration with a third party, such as a retailer, a travel website, a sports league, or a high-end hotel chain. Both companies provide a co-branded credit card that has advantages from both. Due to the bank’s cooperation, customers may be able to receive rewards while making transactions. Co-branded credit cards are linked to retailers and offer a variety of benefits, rewards, and discounts. Banks have began working with e-commerce firms to provide co-branded credit cards, as has been the recent trend. Fuel and airline credit cards are two of the most common co-branded credit cards, and they allow you to redeem rewards points for flight miles, travel awards, products, and class upgrades.
The Benefits of Having a Co-branded Credit Card in India are that co-branded credit cards are accepted worldwide since they are issued in conjunction with well-known payment processing gateways like MasterCard or Visa. You can shop at any merchant’s store in the globe.
When compared to a regular credit card, co-branded credit cards provide superior deals and discounts because they are designed particularly for this purpose. Certain co-branded credit cards do not charge financing fees on EMI (Equated Monthly Instalment) purchases.
Some co-branded credit cards allow customers to use their reward points to purchase flights or accommodations, lowering the cost of travel. There are several co-branded credit card now in teh market.
The funds will be used to build the Bengaluru-based company’s technological infrastructure, launch card programmes, and hire and expand.
Hyperface, founded in February 2021 by Juspay’s former Chief Technology Officer RV Ramanathan and banker-turned-entrepreneur Aishwarya Jaishankar, assists businesses and brands in developing their own individual credit card products and integrating financial goods into their mobile applications.
Its API-first, platform-based strategy enables fintech firms to launch a programme in 4-8 weeks, as opposed to the traditional 18-24 months. Fintechs may utilise Hyperface APIs to manage the whole customer experience throughout the card’s lifespan, establish customised loyalty programmes, and encourage user participation in a number of ways.
Their objective is to simplify, improve, and innovate credit card access by allowing fintech businesses to collaborate with banks ten times more frequently. Credit cards, which are based on legacy technology, are a highly regulated financial instrument that has been utilised in India for over 20 years. In the digital era, this makes it difficult for issuers to respond quickly. Sayali Karanjkar, the creator of Paysense and a frequent angel investor in fintech startups, believes that things will change. Clients of the firm include eCommerce enterprises, neobanks, and fintech who want to offer credit cards to their customers. It generates revenue by charging on a pay-as-you-go basis.
In response to Hyperface’s latest round of funding, Vaibhav Domkundwar, CEO and founder of Better Capital, stated, “There is currently an unprecedented need for a partner who can help bridge the gap between financial institutions and fintech companies that wish to issue a credit card product for their customers.”
Better Capital is an early-stage venture capital firm that has previously invested in Rupeek and Jupiter, as well as other fintech firms. Tracxn, Flipkart, Rippling, ShopUp, and Nium founders and executives have contributed a total of US$1.3 million to Hyperface. The funds will be utilised to improve the technological platform, introduce card programmes, recruit additional personnel, and speed up the company’s growth. Hyperface makes it simpler for fintech firms, e-commerce businesses, and neobanks to build credit card products by integrating financial products into their mobile apps.
The popularity of the company has grown over the years and it has become one of those companies to mark its presence as a successful startup in India. The company aims to expand with the fund and it would be exciting to see how it performs in the future.
