Railsbank, a global Banking-as-a-Service (BaaS) and Credit Card-as-a-Service (CCaaS) platform, and Paceline, a retail health and wellness platform, are collaborating on a health and wellness credit card. This Paceline-branded credit card allows users to earn category-based cash back based on both their physical activity as well as what they spend.
Paceline card members will earn elevated cash back on health and wellness transactions, and earning boosts when they achieve the weekly fitness milestone on the core Paceline app. The company has already built a community of health enthusiasts that connect its app to their wearables to track fitness goals. Currently, active Paceline users have logged more than 4.6 million workouts totalling 128 million minutes while earning rewards to brands like Amazon, Starbucks, Athleta, Sun Basket, Hyperice, and Echelon. These active Paceline customers will be first in line for this credit card offer.
As Paceline builds its credit card offering, it will be using both the Railsbank CCaaS product launched in Q4 last year and its core finance platform.
“Paceline wanted a wholly-embedded experience where a credit card could live in the Paceline app and integrate with all its health-related features,” Railsbank COO Dov Marmor said. “Before CCaaS, that just was not a reality.
“CCaaS prebuilt the entire infrastructure needed to launch a credit card fast, taking on the heavy lifting such as banking, credit, payments operations, risk management and compliance. It lets Paceline focus on UX, customer experience and differentiating their brand from anything else on the market.”
“Physically active customers spend three times more and are five times more profitable to financial services providers,” Paceline founder and COO Joel Lieginger said. “This scenario presents a huge opportunity to lifestyle brands, and drives lower acquisition costs and higher lifetime value for credit cards and insurance, resulting in better societal health overall.
“With the Railsbank CCaaS product, we can build towards our vision and launch the first health and wellness credit card that rewards and incentivizes physical activity with material financial benefit – all in a fraction of the time it would take to build ourselves.”
Paceline recently announced a $5 million seed investment co-led by Propel Venture Partners and Montage Ventures. Last November, Railsbank raised USD37 million growth funding co-led by MiddleGame Ventures and Ventura Capital.
