Digital subscriptions, like the rent many Angelenos face at the first of every month, have become expense staples in the streaming and e-commerce era. Altro, a fintech platform that powers credit building through subscription payments, has increased its availability to Angelenos and customers across the U.S.
On March 6 the downtown-based company launched the Altro Credit Builder Card, which expands customer access into 47 states through an issuing and operating partnership with the nationally chartered Hatch Bank and Discover Global Network.
The company also disclosed a $4 million bump in funding, with its latest round roping in celebrity investors including Tinashe, Chris Paul and Marshawn Lynch. Altro’s total funding now stands at $22 million.
Despite being headquartered here since its founding, Altro wasn’t available to customers in California prior to this partnership.
Bringing on Hatch Bank and Discover expands the fintech’s footprint, but Altro emphasizes customers won’t directly interact with these partners since no physical Credit Builder Cards will be issued and customers can automate monthly payments through the Altro app.
Michael Broughton, Altro’s chief executive, said Discover signed onto the deal with the hope Altro would become a core network product and driver for new-customer acquisition.
“They’ve always been seen as the third company in the credit space,” Broughton said. “They’re actually paying Altro and investing in Altro for getting our volume numbers up, and their incentive is that they get to grow their network.”
Broughton and his team expect to onboard between 20,000 and 40,000 users on its app this year. To qualify for the Altro Credit Builder Card, users must opt into Altro’s premium membership for $9.99 a month. Once subscribed, other recurring transactions from participating services such as Netflix, Spotify, and Amazon Prime can start funneling through the Altro’s trade line, which ultimately…
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