FintechPaymentsTechnology

X1 launches new “smart credit limit” card

X1 announced the public release of its smart credit card today, which uses current and future income instead of credit scores to set limits, to a waitlist of over 350,000 today, according to a press release.

The card is made of stainless steel and offers a number of benefits, allowing one-click subscription cancellation, rewards with no annual fee, no foreign transaction fee and higher limits based on its smart credit implementation.

“With X1, we tossed the rulebook out and designed the first challenger card for digital natives. X1 delivers a superior experience that feels both simpler and smarter than any other credit card on the market, and we were so honored last year when hundreds of thousands of people joined our waitlist to get access to that experience,” X1 co-founder and CEO Deepak Rao stated in the release.

“After months of hard work and an extremely promising private beta, we’re thrilled to start rolling out X1 Card to the public,” he said.

X1 has raised $22 million to date, with a $10 million Series A led by Craft Ventures in late 2020 and a $12 million Series A led by Spark Capital in January 2021. The company has also partnered with Silicon Valley Bank (NASDAQ: SIVB) and Coastal Community Bank to provide the card.

The company says that since the beta launched six months ago, users have opened the app 10 times per day on average and have had limits 7.5x higher than their average credit card.

45% of customers have said the X1 card has been used for the majority of their spending within 60 days of having the card, according to the release, with over $1 million being spent in that time across a few hundred customers.

In other recent fintech news, Lydia AI raised a $8 million Series A+ led by Information Venture Partners in a push to become the market leader in deep learning risk scoring for insurance. N26 also raised a $900 million Series E that is set to push its IPO ambitions.

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