US-based card start-up Mercantile launches with $22m in hand
Mercantile, a fintech offering industry-specific credit cards to small businesses, has publicly launched with $22 million in total funding.
Mercantile launches with $22m funding
The capital raised includes a $15 million Series A led by Index Ventures, with participation from seed investors First Round Capital, General Catalyst, SV Angel, Operator Partners, Box Group, among others.
With the fresh funding, Mercantile plans to further its product development, build partnerships and expand its teams.
Mercantile’s offering includes “customised” credit card programmes based on industry-specific needs, starting out with the healthcare sector, with plans to expand to other markets in due course.
It aims to offer small businesses between 5% to 20% in vendor discounts, 1.5% cashback on all purchases for cardholders, sign-up bonuses of up to $1000, no annual or hidden fees and no impact on personal credit ratings.
Mercantile’s initial partners include the American Optometric Association, the Opticians Association of America, the Academy of Doctors of Audiology, and the Medical Group Management Association.
The start-up says its partners will benefit from increased engagement, additional revenue, co-marketed products and “fast and simple” onboarding – claiming to take less than 30 days between contract signing and receiving the branded credit cards.
“Hundreds of billions of dollars in total payments flow through small businesses each year, but it can be very difficult to tap in if not approached correctly,” says Mark Fiorentino, partner at Index Ventures and new Mercantile board member.
“Creating co-branded card programs with industry-specific players allows for scalable distribution while the SMEs benefit from amassing the purchasing power of an enterprise-sized customer.”
Founded in 2021, Mercantile is headquartered in New York.
