Fintechs, these techno-SMEs that want to shake up banks, are increasingly offering credit or prepaid cards. Here is an overview.
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These cards allow you to pay with your phone and some are only offered virtually! No more rummaging through your wallet.
Many offer cashback (or even in cryptocurrency, although these days we wonder if it’s beneficial), other rewards. Some trade specific brands, most charge no annual, transaction, foreign exchange, or interest fees.
advantages and disadvantages
Prepaid cards use Visa and Mastercard payment infrastructures worldwide. Some send a text or email notification with every transaction. On the other hand, they won’t improve your credit report if you use them in a disciplined manner. Most requests for a prepaid card will not affect your credit report.
On the credit card side, some allow you to buy now and pay later, with no fees or interest, in weekly, biweekly, and monthly installments. Some cards like Brim only take a few seconds to be approved before you can use them with your phone.
Fintechs offer a credit repair service, such as B. Koho (for $7 a month, they offer you a line of credit that you pay back every month). Plastk offers its Sentinel card for $6 per month (credit file and score monitoring).
The offer
Hudson’s Bay partnered with Neo Financial for its two million Canadian credit cards in October 2020. The Mastercard credit card allows you to double The Bay points with 1% cashback and zero annual fees. Neo also offers other cards (up to 5% discount) and a savings account (1.30% interest, no bank fees).
Brim offers a Mastercard credit card that offers rewards of up to 30% in points at participating brands (Patagonia, Nike, Frank And Oak, Lululemon, Indigo).
Other fintech prepaid cards with cashback: Koho (0.5% cashback; premium version: 2% on groceries and transport), Stack (special offers at merchants), WealthSimple (1%); with cryptocurrency rebates: Mogo (Visa Prepaid, rebates up to $200 in Bitcoin), Krypto.com (On the other hand, this platform seems complicated).
advice
- “A person who manages their budget well is better off switching to traditional credit cards, which are more advantageous in terms of rewards,” emphasizes Jean Maximilien Voisine of Milesopedia.com.
- Prepaid card terms and conditions change frequently.
- Of to read on prepaid cards, on the website of the Quebec company Hardbacon.
- Personally, I prefer traditional cashback credit cards that are tied to my phone. The most generous are CIBC Dividend Visa Infinite (4% on gas and groceries), Cashback Tangerine Mastercard (2% on all purchases).
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