Fintech company LendUp has secured investment from LL Funds, Invus Opportunities and QED Investors to scale its credit card business as a standalone entity, Mission Lane.
The decision to spin off credit card business is part of LendUp’s strategy to focus primarily on personal loans, gamified education and savings opportunities as an independent company.
Go deeper with GlobalData
Mission Lane will be engaged in handling credit cards, including card portfolio, IP and technology platform. The venture will build on LendUp’s initial credit card products – Arrow Card and L Card.
Arrow Card and L Card serve as mobile-first alternatives to fee harvester cards.
The fintech firm believes that the two standalone entities will enable their individual growth with separate technology platforms and capital structures.
In addition, the companies would be able to expand their consumer reach with mobile-first products.
QED Investors co-founder Frank Rotman said: “While most of the financial services industry is aimed at the prime and near-prime end of the credit spectrum, these moves set not just one, but two companies up for long-term success.
“Now, LendUp and Mission Lane are better positioned to serve the more than half of Americans who lack access to high quality financial services.
“As an independent entity, LendUp can reach its full growth potential, delivering even more open and transparent financial services to a much larger segment of consumers.”
