Last updated on September 6th, 2023
Shopify has announced its new business credit card for merchants. The company has entered the fintech credit card space with a product that offers cash back rewards, no fees, and more. Here’s what you need to know about the launch.
Shopify Launches Its New Business Credit Card
Shopify is an e-commerce company that provides a platform for online stores and retail point-of-sale (POS) systems. Merchants that use Shopify can access tools for website building, sales management, and more. It’s no surprise, then, that the e-commerce company has expanded its products with a new credit card, as it shows trending growth in revenue. Shopify reported a revenue increase of 31% in its second quarter, equal to $1.7 billion compared to its previous year. The business anticipates further revenue growth in the low-twenties percentage rate for Q3.
What’s New With Shopify?
Before announcing its new business credit card, in May of 2023, Shopify launched its new merchant debit card for Shopify Balance accounts – a merchant account with no fees and no minimum balances. Similarly, the new Shopify Credit product is a business credit card created solely for Shopify merchants. It is the company’s first pay-in-full credit card, meaning cardholders must pay off their balance in full each month – comparable to a charge card. However, with Shopify Credit, cardholders also get an additional 25 days to pay, totaling up to 56 before needing to make a payment.
Shopify Credit is a Celtic Bank-issued credit card, and it can be used anywhere Visa cards are accepted. It is powered by Stripe, a software company providing API services for web payments, sending out payouts, and more. Shopify and Stripe are no strangers. The two have been partners for over a decade for services like Shopify Payments and Shopify Balance.
“Entrepreneur in Mind”
“We designed Credit with the reality of an entrepreneur in mind. We recognized that having smooth cash flow is important for business owners, and as a business matures, entrepreneurs may find themselves looking for a credit line to maximize their working capital for expected (and unexpected) expenses,” said Shopify President Harley Finkelstein to TechCrunch.com.
The application process for Shopify merchants considers many factors. For example, instead of performing credit checks, Shopify evaluates sales performance. Merchants must also be on the Shopify Payments service and must be U.S.-based with sales on Shopify. Shopify Credit earns up to 3% cash back on eligible spend categories, has no fees, tailored credit limits, and more. New cardholders can also take advantage of a limited-time welcome bonus, and the rewards get applied as monthly statement credits.
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