Fintech companies are technology companies that specialise in financial services. Some of these companies have credit cards, which are known as fintech credit cards. In contrast with traditional credit cards, fintech credit cards use newer technologies that enhance the customer experience and provide new features. These include features such as digital wallet integration, personalised financial management tools, real-time spending analytics, and unique rewards programs that adapt to user behaviour.

Fintech credit cards are a convenient, secure payment method and are part of the growing digital payments market that’s projected to reach a total transaction value of $11.5 trillion USD in 2024. Below, we’ll explain how businesses are taking advantage of fintech credit cards, and how they differentiate from traditional business credit cards.

What’s in this article?

• Key features of fintech credit cards
  
• Traditional business credit cards vs. fintech credit cards
  
• How businesses use fintech credit cards
  
• Fintech credit card options for businesses
  
• How to choose the right fintech credit card for your business
  

Key features of fintech credit cards

Some fintech credit cards offer specialisation, but they all tend to include the following features:

• Real-time expense tracking and management: Fintech cards enable real-time expense tracking through mobile apps or online platforms. This makes it easier to stay within budget and quickly identify any unauthorised transactions.

• Customisable spending limits: Fintech credit cards often allow businesses to set spending limits on individual employee cards, which gives them more control over expenses. Businesses can adjust these limits in real time for increased flexibility as their needs change.

• Virtual and physical cards: Many fintech providers have both physical and virtual cards. Users can instantly create virtual cards for online transactions or for specific departments and projects. This adds an extra layer of security and convenience.

• Integration with financial software: Fintech cards can usually integrate with popular accounting and expense management software such as QuickBooks, Xero, and Expensify. Integration can automate the reconciliation process, save time, and reduce manual errors.

• Automated reporting and analytics: Fintech credit cards often include advanced reporting features that provide detailed insight into various financial metrics. These reports can help businesses make more informed decisions and refine their financial strategies.

• Low or no fees: Many fintech credit cards have no annual fees, no foreign transaction fees, and lower interest rates. This can be especially appealing for smaller businesses and startups.

• Modern rewards programmes: The rewards programmes fintech cards offer often cater to modern business needs. For example, they might give cash back on software subscriptions or advertising spend, or provide travel perks that are relevant to tech-oriented companies.

• Easy card issuance and management: The process of issuing new fintech cards is typically fast and straightforward. This ease of management extends to making changes or deactivating cards as needed.

Traditional business credit cards vs. fintech credit cards

While traditional credit cards and their fintech counterparts largely serve the same needs, there are key differences that can make each option a better fit for certain users. Here are the major distinctions.

Traditional business credit cards

Major banks or financial institutions issue traditional business credit cards, which benefit from a long track record of reliable service. Here’s how they compare to fintech credit cards.

• Credit limits: Credit limits for these cards are generally higher than those of fintech credit cards. This makes them suitable for larger businesses or those with substantial monthly expenses.

• Rewards programmes: Traditional cards’ rewards programmes are well-established. They often include travel rewards, cashback, and points that can be redeemed for a variety of services. These programmes can be more comprehensive than programs that fintech cards offer, but they might come with annual fees.

• Integration capabilities: Traditional credit cards typically integrate with the issuing bank’s other financial products. This allows businesses to manage their finances through a single platform.

• Interest rates: Interest rates vary. Banks normally offer a range of annual percentage rates (APRs) based on the business’s creditworthiness. Introductory 0% APR promotions are sometimes available.

• Fees: Many traditional credit cards have higher fees than fintech cards, including annual fees and foreign transaction fees.

• Security measures: Traditional cards use strong security measures with established fraud detection systems, well-known protections, and liability coverage.

Fintech credit cards

Newer, technology-driven financial companies issue fintech credit cards to disrupt the traditional financial services industry. The cards’ major benefits include new features and customisation: businesses can often set specific spending limits, create virtual cards for different departments, or monitor expenses in real time. Here’s how they compare to traditional cards.

• Credit limits: Some fintech cards have dynamic credit limits based on cash flow, which can be advantageous for startups or businesses with fluctuating revenues. Some might also have customisable spending limits. Traditional cards usually have less flexibility, and their limits are based on the business’s credit score and credit history.

• Rewards programmes: Fintech cards often provide more modern rewards than traditional credit cards, customising them for tech-savvy businesses. These rewards might include cashback on software subscriptions, advertising, or other common business expenses.

• Integration capabilities: Fintech cards can often integrate with other fintech tools and platforms such as accounting software, expense tracking apps, and advanced analytics tools. This allows businesses to automate many of their financial processes.

• Interest rates: Interest rates vary, but fintech cards typically offer lower interest rates than traditional credit cards, with many providing introductory 0% APR promotions.

• Fees: Many fintech credit cards have lower fees than traditional credit cards. They might have no annual fees, no foreign transaction fees, or more transparent fee structures.

• Security measures: Fintech cards use strong security measures, and many use more modern measures than traditional cards, such as fraud detection driven by artificial intelligence (AI).

How businesses use fintech credit cards

Fintech cards can be an important part of a business’s strategy for payments. Here are some popular ways different business types are using fintech credit cards.

Startups and small businesses

Startups and small businesses can realise major benefits from using fintech credit cards. Tech startups frequently need software, hardware, and other tech investments; they can benefit from fintech cards’ dynamic credit limits and customised rewards programmes. Small retailers are often managing tight budgets, and they can benefit from fintech cards’ low fees and ease of use.

Here are the benefits that make fintech credit cards a good fit for startups and small businesses.

• Access to credit: Fintech cards often assess credit based on cash flow and other business metrics, rather than traditional credit checks. This can make them more accessible to startups and small companies without an established credit history.

• Dynamic credit limits: Fintech cards can adjust credit limits in real time based on the business’s performance. This gives startups with unpredictable finances more flexibility.

• Cost efficiency: Many fintech cards come with few fees. This can help startups reduce operational costs.

• Real-time expense management: Fintech cards use real-time tracking and instant notifications. This lets companies keep a close eye on spending and quickly identify unnecessary expenses.

Tech and software-as-a-service (SaaS) companies

Fintech credit cards are a natural fit for tech and SaaS companies due to their emphasis on tech integration and customisation. SaaS providers frequently spend on cloud services, software, and digital marketing: they can benefit from fintech cards’ relevant cashback rewards and expense management features. IT consulting firms that manage project-related expenditures can benefit from features such as custom spending limits, real-time expense tracking, and the ability to issue multiple employee cards.

Here are the benefits that make fintech credit cards a good fit for tech and SaaS companies.

• Customised rewards programmes: Many fintech credit cards have rewards that align with the specific needs of tech companies, such as cash back on software subscriptions, discounts on cloud services, and savings on digital advertising.

• Software integration: Fintech cards can often integrate with existing accounting and expense management software. This simplifies the reconciliation process and keeps financial data up-to-date.

• Flexibility: As tech companies grow, fintech cards can grow with them. They typically have flexible credit limits and allow users to instantly issue virtual cards for new employees or departments.

• Security: Tech companies conduct online transactions frequently. They can benefit from fintech cards’ heightened security features such as tokenization, AI-driven fraud detection, and virtual cards.

E-commerce and online businesses

E-commerce businesses rely heavily on digital transactions and require strong security, which fintech credit cards can provide. Online retailers can benefit from fintech cards’ low fees and virtual cards for secure online transactions. Digital agencies managing multiple projects can benefit from the ability to issue multiple virtual cards for easier tracking and billing.

Here are the benefits that make fintech credit cards a good fit for e-commerce and online businesses.

• Virtual card capabilities: E-commerce businesses can issue virtual cards for specific transactions or vendors. This improves security by limiting exposure to the primary business card.

• Advanced fraud protection: Fintech cards’ advanced security measures (e.g., instant transaction alerts, AI-based fraud detection) can protect businesses from online and e-commerce fraud.

• E-commerce platform integration: Many fintech cards can integrate with e-commerce platforms. This facilitates automated payments, automated reconciliation, and financial tracking.

• Custom spending controls: Businesses relying on multiple vendors or controlling expenses across various teams can use fintech cards’ customisable features to specify spending limits for each cardholder.

Freelancers and solopreneurs

Freelancers and solopreneurs usually juggle multiple roles in managing their businesses, and they can benefit from fintech credit cards’ specialised features. Freelancers in fields such as graphic design, writing, and digital marketing can take advantage of fintech cards’ rewards on software and online tools. Independent consultants managing business expenses and billing can use the cards’ real-time tracking and integration features.

Here are the benefits that make fintech credit cards a good fit for freelancers and solopreneurs.

• Expense tracking: Fintech credit cards can automatically categorise and track expenses. This makes it easier for freelancers to manage their finances and prepare their taxes without complex accounting software.

• Flexible credit options: Freelancers often experience fluctuating cash flow. Fintech cards’ credit limits can adapt to current income and ensure access to funds when needed – without overextending.

• No or low fees: Fintech credit cards often have no annual fees, no foreign transaction fees, and transparent fee structures. This helps freelancers keep more of their earnings.

• Instant access to virtual cards: Freelancers who work with international clients or who purchase digital services can quickly generate virtual fintech cards for specific transactions. This feature provides freelancers with enhanced security and convenience.

Fintech credit card options for businesses

There are always new fintech players and products coming to market. But as of 2024, here are some of the leading fintech credit card products used by businesses.

• Stripe corporate card: Stripe corporate credit cards are best suited for companies using Stripe for payment processing. Key features include virtual cards for online spending, easy integration with the Stripe payments platform, and cashback rewards.

• Ramp: Ramp credit cards are best suited for businesses looking to simplify expense tracking and maximise savings on everyday costs. Key features include automated savings insight, cashback on common business expenses, and integration with accounting and expense management software.

• Brex: Brex credit cards are ideal for startups, early-stage companies, and growing businesses that need access to credit and customised rewards. Key features include no requirement for a personal guarantee, rewards on travel spending, and flexible credit limits.

• BILL (formerly Divvy): BILL credit cards are best suited for businesses that need to tightly control expenses and improve budgeting processes. Key features include real-time expense tracking, customisable spending limits for employees, and tools for budget setting and forecasting.

• Rho: Rho credit cards are ideal for businesses seeking a flexible financial solution with built-in cash management. Key features include cash-back rewards, flexible spending limits, and spend tracking.

• Bluevine: Bluevine credit cards are ideal for small businesses and start=ups. They can benefit businesses looking for a straightforward, basic credit card with flexible credit access. Key features include no annual fee, cash-back rewards, and various credit line options.

• Jeeves: Jeeves credit cards are best suited for businesses operating in multiple countries or those with substantial international transactions. Key features include multi-currency spending with no foreign transaction fees, cashback rewards, and expense management.

How to choose the right fintech credit card for your business

As with any other tech product, choosing the right fintech credit card requires you to think through what you need and what your goals are. Here’s how to make an informed decision about which fintech card is right for your business.

Assess your business needs and spending patterns

• Examine your business’s spending habits over the past few months. Identify the categories where you consistently spend the most, whether they’re software subscriptions, travel, advertising, or office supplies.

• Think about how you use credit cards in your business. Do you need multiple cards for employees? Would you benefit from features such as virtual cards for online purchases and spend management tools to set limits and track spending?

• Different fintech credit cards have different eligibility criteria. Check your business’s credit score and credit history, so you can choose cards with a higher chance of approval and avoid unnecessary hard inquiries on your credit report.

Compare fees and interest rates

• While fintech credit cards often come with low or no fees, many will still have fees of some sort. Carefully weigh the benefits against these fees to ensure that the card’s value justifies the expense.

• The APR sets the interest rate on any outstanding balance. Compare APRs across different cards and consider any introductory 0% APR offers – especially if you plan to carry a balance or make large purchases.

Explore rewards and perks

• Different cards have various reward structures such as cash back, points, and miles. Evaluate which rewards are the best fit for your business’s spending patterns and goals. For instance, tech companies can benefit from a card that gives cash back on software subscriptions.

• Some cards offer additional benefits such as discounts on business software, travel insurance, airport lounge access, and purchase protection. Evaluate these perks and consider if they add meaningful value to your business.

Prioritise user experience and integration

• A user-friendly online platform and mobile app can simplify expense tracking, card management, and rewards access. Select cards with intuitive interfaces and financial management tools.

• If you use accounting software or other business tools, choose a card that integrates with those platforms. Integration can automate expense tracking, reconciliation, and reporting.

Research customer service and support

• Read reviews and testimonials about how responsive and effective fintech companies’ customer service teams are.

• Evaluate available support channels (e.g., phone, email, live chat) and their hours of operation.