Payment methods

MaxRewards cashes $ 3 million to reveal the best payment methods that reap the most rewards – TechCrunch

When Anik Khan graduated from college, his first job was working on credit cards and business expenses at Accenture. There he discovered that someone could make a few thousand dollars just by having the right credit cards and following rewards and promotions.

It was in 2017 when he and David Gao had the idea for his business. Max Rewards, a digital wallet app that manages credit cards and automatically activates perks like rewards, cashback offers, and monthly credits. It also makes recommendations at the time of purchase on which card would earn the best reward for that purchase.

Go after some 83% of Americans who have a credit card, the app version was officially launched in 2019, and now the Atlanta-based company is announcing a $ 3 million funding round co-led by Dundee Venture Capital and Calano Ventures. Techstars, Fintech Ventures Fund, Service Provider Capital and Fleetcor Chairman Nick Izquierdo also back the company.

By manually tracking his own credit cards before MaxRewards, Khan remembered in a year, earning $ 16,000 in rewards. However, using these perks was time consuming and difficult, as the rewards and savings are not always highlighted by the credit card companies.

“Other companies have tried to do something similar, but the problem is, you don’t have the information on the rewards or the offers,” Khan told TechCrunch. “If you were to aggregate this information, you should always activate all of these things and use them before they expire.”

Users connect their accounts and when they make a purchase, their location is crossed with the merchant and an algorithm is applied to tell the user which card to use. The average app user has six credit cards.

MaxRewards is free to download and use, and the majority of the app’s features are free. Users who want additional features, such as automatic activation or rewards, can join MaxRewards Gold and have the option of choosing their own monthly price – the average is over $ 25 per month – depending on the value they have. they expect to win, Khan said.

MaxRewards offers and benefits. Image credits: Max Rewards

Ron Watson, a partner at Dundee, said his company invests in early stage businesses between the coasts and is interested in consumer and e-commerce businesses. Watson said he was impressed with what MaxRewards was able to do with a team of three. It also relates to the company’s mission, having grown up in a lower-middle-class family that did not go on vacation often.

When he got his first job and suddenly flew everywhere, he remembers racking up so many rewards that he was able to go on vacation to Hawaii and spend maybe only $ 100, a he declared.

“I used to put my points in a spreadsheet, but as I got older and had kids I realized how hard it was for the average person to do it and how important it is. to have automation, ”Watson said. “I downloaded the app and on the first day I saved $ 20. “

The company is often compared to NerdWallet or Mint, but in terms of functionality, Khan said he thinks MaxRewards is unique because of its credit card system connectors. Rather than relying on third-party aggregators to discover rewards, MaxRewards operates its own proprietary connectors to card systems.

There are hundreds of thousands of deals to check out, and consumers are asking for even more features, so Khan decided it was time to seek seed funding. He had raised a small seed, about $ 200,000, from his time at Techstars, but the new funding will allow him to join his team of three. He hopes to be 20 by the end of the year. Khan also wants to accelerate its user acquisition, product improvement and compliance.

Next, the company will automate rewards and savings on additional platforms such as debit cards, payment apps, and refund apps, as well as build browser extensions and a web app. Khan also wants to do more on the education side when it comes to smart credit card use.

Arron Solano, Managing Partner of Calano, met Khan via Techstars and said he advocates for the correct use of credit cards. His company was looking for a company like MaxRewards.

“On our first call, I remember telling my partner that Anik was a bulldog who knew what he was talking about, especially at this point,” Solano added. “He had strong team members, his vision was well aligned and that ticked a huge box for us. He energized us and showed that he could find a market with incredibly high “super users”. “


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