Karta Raises $140 Million for Credit-Invisible Travelers’ Card

Fintech startup Karta has secured $140 million to expand its credit card offerings for consumers who are traditionally 'credit-invisible.' This funding is significant for retailers and operators because it signals a push toward non-traditional underwriting. Karta uses alternative data to approve customers who lack high FICO scores, specifically targeting the travel sector. For businesses, this trend means more of your customers may soon have access to dedicated credit lines that don't rely on old-school bank metrics. The company is launching a new card tier and an experience-led platform. This reflects a broader shift in consumer financing where credit is bundled with specific lifestyle perks to drive brand loyalty. As a merchant, these types of products help your customers increase their purchasing power without the hurdles of traditional credit applications. The injection of $125 million in debt capacity ensures Karta has the liquidity to back these new accounts. Watch for these types of 'niche' credit products to continue filling the gaps left by big banks, especially as consumer demand for flexible payment options remains high.

Source: PYMNTS

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