Zurp to launch a new secured credit card

Fintech Zurp received $5 million to help launch its credit card. The concept of the Zurp credit card is to allow cardholders to earn rewards that are then distributed to their favorite content creators or causes. In return, the cardholders receive access to unique experiences and content provided by their rewards recipients.

As of now, Zurp credit card holders will have the chance to support their favorite TikTok, YouTube, or e-gaming personality. Zurp says that in the future, cardholders will be able to donate to their favorite athlete, record label, or charity.

Though Zurp believes that its card offering is the first-of-its-kind, it was preceded by similar defunct so-called “green cards”, like Spiral, Credo, and Aspiration. The card issuers donated a percentage of the customers’ purchases to charities. Aspiration also committed to planting a tree for every purchase that its credit cardholders made. The company also encouraged customers to go carbon zero by rewarding them with up to 1% cashback for each month that they did so.

The Zurp credit credit card is unique in the fact that it’s a secured credit card, whereas the previously mentioned Spiral card was a debit card and the Credo and Aspiration cards were unsecured credit cards.

Zurp claims that its business model promotes financial literacy. One might argue that it’s financially irresponsible to apply for (or offer) a secured credit card for the sole purpose of supporting an influencer.

We’re skeptical about secured credit cards as most issuers tend to be predatory, preying on the consumers who most desperately need them as they rebuild their credit. Incentivizing social media influencers to promote this type of credit product is risky and might actually prove to harm Zurp’s own brand if the marketing of the credit card isn’t carefully crafted and controlled.

So far, there are no details on how the secured card would actually work in regards to the deposit amount, credit limit, or when the card would become unsecured. 

If you’re searching for a secured credit card, we recommend Discover. View our secured credit card guide to learn more about secured credit cards and what you should look out for when shopping for a secured credit card.

As a side note, when will fintechs learn to stop branding themselves with names that consumers are all too eager to use against them when things go awry with the service or the company ultimately fails? Let’s hope that this new fintech doesn’t go zurp.