Innovative Startup Disrupts traditional Banks in the Co-Branded Credit Card Arena

The credit card sector, historically dominated by large financial institutions, is undergoing a meaningful change as agile startups introduce fresh dynamics.One notable player, Imprint-a New York-based fintech newcomer-has recently secured a high-profile collaboration with the well-known e-commerce platform Rakuten.

How Imprint Outmaneuvers Banking Giants for Strategic Partnerships

In a highly contested selection process for Rakuten’s latest co-branded credit card, Imprint surpassed several established banks to win the partnership.This milestone underscores the startup’s expanding footprint in an industry long controlled by heavyweights such as JPMorgan Chase,Capital One,Citigroup,adn Synchrony.

Despite retaining its entrepreneurial spirit and nimbleness, Imprint is positioning itself as a serious competitor to these entrenched institutions. The company recently secured $70 million in new funding that elevated its valuation close to $900 million-bringing total capital raised to $330 million. This robust financial backing strengthens Imprint’s credibility and reassures partners of its lasting growth trajectory.

Operating Like a Bank Without Being One: A Hybrid Financial Model

While not officially chartered as a bank,Imprint functions similarly by overseeing capital market activities alongside compliance and risk management duties. To issue cards like the Rakuten co-branded product-which operates on the American Express network providing enhanced purchase protections-the startup partners with smaller banks such as First Electronic Bank for regulatory support.

This hybrid approach enables Imprint to maintain full control over customer experience-from technology infrastructure through credit underwriting-while leveraging existing banking licenses. Unlike traditional banks that rely heavily on third-party vendors like Fiserv for transaction processing systems, Imprint builds proprietary platforms optimized for seamless digital integration and scalability.

“legacy banks struggle because they don’t own their core credit card technology,” explains Murphy. “Most major issuers depend on multiple external providers behind the scenes.”

A Customer-First Ideology: Transparent Payments Coupled With Rewarding Benefits

Differentiating itself from competitors known for profiting off late fees and convoluted payment structures (such as Bread Financial and Synchrony), Imprint emphasizes simplicity in repayment options paired with clear dialog. By reducing punitive fees and offering intuitive digital tools for managing payments, it promotes responsible usage while building lasting customer loyalty.

This strategy also results in lower acquisition costs compared to traditional issuers-a saving passed directly into more attractive rewards programs including:

• An extra 4% cash back on purchases made through rakuten’s shopping portal (capped at $7,000 annually).
• A generous 10% cash back when dining at select restaurants partnered with Rakuten.
• A consistent 2% cash back rate applicable at grocery stores and non-partner dining venues alike.

This revamped program replaces Rakuten’s former Visa card issued by Synchrony which was phased out in 2022 after years of service.

The Road Ahead: Fintechs Reshape Consumer Finance landscape

The emergence of fintech innovators like Imprint signals profound shifts within consumer finance where technological agility challenges legacy banking models effectively. Backed by over $1.5 billion in committed credit lines from major institutions including Citigroup and Truist, along with substantial internal reserves held by the company itself, this startup exemplifies how nimble firms are redefining access to branded credit products today.

“We’re partnering with Fortune 500 companies who prefer us over traditional issuers,” states Murphy. “Our mission extends beyond growth-we aim to redefine what it means to be a modern financial partner.”