Tandym is a Chicago-based private-label credit card issuer seeking to disrupt the store credit card market. The firm, launched earlier this month and backed by $60 million in venture capital funding, helps brands recoup the costs of accepting credit cards by funding merchant-specific loyalty programs.
Tandym Seeks to Streamline Brand Loyalty
The costs of offering a store card look set to decrease, thanks to a new approach from fintech Tandym. Tandym is a Chicago private-label credit card issuer that partners with e-commerce brands making under $1 billion in revenue and helps them offer credit to their customers. The startup enables online merchants to instantly issue virtual credit cards to customers who may earn 5% in rewards on future purchases, the company announced. The concept addresses the common merchant complaint that the interchange fees that credit card networks collect typically go toward funding banks’ card rewards programs instead of retailers’ own rewards programs. The startup officially launched its platform at the end of May with $60 million in seed funding from Google’s AI-focused venture fund, Gradient Ventures. Some of Tandym’s e-commerce partners include Jennifer Bradley Cosmetics, The Wellness Enterprise (a structured water device company), and PerioSciences, which offers a line of antioxidant-infused dental rinses and gel products.“Democratizing” Credit Card Access
“Gradient also invested in our pre-seed round, and they have been fantastic partners to work with. They are strategic, thoughtful, and act as true partners,” Jennifer Glaspie-Lundstrom, CEO and co-founder of Tandym, told Built In Chicago, a tech website. “We’ve been uniquely impressed by the operating resources that they bring to bear.” “Tandym democratizes access to private label card programs — which were previously only available for the nation’s largest retailers. This enables merchants of any size to save money and grow their businesses,” added Glaspie-Lundstro. “Tandym essentially redistributes wealth back to and empowers merchants via their own loyalty programs, allowing them to deepen their connections to the consumers they serve.” Related Article: What are Your Credit Card Points Worth?Featured image by Tandym
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