Fintech, short for financial technology, is the technology that aims to change and improve traditional forms of finance through new technologies. Part of fintech is cryptocurrencies, however, it’s not limited only to it but also includes mobile investing and borrowing services, and banking through your smartphone. Created to make managing finances easier both for individuals and for businesses, fintech provides users with innovative solutions which try to outshine traditional services. A good example could be the best fintech credit cards in 2022. You may be curious how they differ from the plastic credit card in your wallet or what makes them so special?
In our article, we’ll explain what fintech credit cards are and how they work, and compare to traditional ones. To illustrate our facts, we’ll list some of the best fintech credit cards in 2022. Find out more about this aspect of financial technology and decide if you want to swap your card for a fintech one.
What Are Fintech Credit Cards?
We’ll begin our journey into this fintech creation by explaining what are fintech credit cards. These cards are issued by companies in the financial technology sector and can be made in two ways – through neobanks or in a partnership with a traditional bank.
Fintech Credit Cards Issued by Neobanks
Neobanks, also known as challenger banks, don’t rely on traditional financial services but instead prioritize online ones. They do that not only to alternate how banks operate but to also save customers additional costs and provide access to money management for people who are unable to create a bank account the traditional way. Some neobanks issue fintech credit cards completely independently and if you’re looking to change the way you operate with your money from conventional to digital, that’d be your best choice.
Fintech Credit Cards Issued With Bank Partnership
Some fintech companies choose to partner with banks when issuing the best fintech credit cards. You may think this goes against financial technology’s values of changing traditional money management? However, this could be taken as an example of banks themself taking the step towards modernization of their services and adopting a more digital approach to serving their clients.
Comparison Between the Best Fintech Credit Cards and Bank Cards
There are various ways in which fintech and traditional credit cards differ. We’ve already mentioned how some banks can partner up with fintech companies to release cards but here we’ll make a comparison between the two types beyond the issuer.
Plastic Format
Traditional bank credit or debit cards are plastic. Some of the best fintech credit cards in 2022 can also be found in plastic form, however, that would be a bonus provided by the company, as the idea behind this technology is for the minimalization of external objects and the simplification of the whole money managing process. That’s why fintech credit cards are usually known for being a digital service in the company that’s providing them app for which you only need your phone to use. This perfectly displays the way fintech wants to make banking easier, as they save you the time of waiting in a bank to create or renew your plastic card or the worries you may break or lose it.
The sustainability of this difference is worth mentioning also since according to recent research banks issue over 6 billion cards yearly and despite their efforts to use recycled plastic, the best fintech credit cards are a lot more sustainable in this case.
Comparison of Taxes
Compared to traditional banks, fintech companies offer their services to users for considerably lower fees, including smaller interest rates, and different taxes. As mentioned, this is a part of the best fintech credit cards in 2022 strategy for being a lot more accessible than traditional finances and they’re certainly executing it well, helping people without consistent income or a lower one, to have a way to operate with their money.
Comparison of Availability
The amount of underbanked or unbanked people in the world is very high. What this means is that many people are experiencing issues creating and owning a bank account in a regular bank, some don’t comply with all conditions, some don’t have the right documents, and others have a bad credit history. The best fintech credit cards in 2022 are a lot more available in this matter, since most citizens of developed countries have some kind of smart device, meaning they also have access to them. You don’t have to go through a complex process of applying and waiting in a physical location, you can do it over your phone, and this makes this type of card a lot more easy to issue for a big number of people, compared to regular cards.
Advantages and Disadvantages of the Best Fintech Credit Cards in 2022
We’ve covered the differences between fintech and traditional credit cards. Now it’s time to point out the pros and cons of the best fintech credit cards, making it easier for you to see them in one place.
Advantages of the Best Fintech Credit Cards
- Security: The best fintech credit cards prioritize the users’ security beyond all, using different encryption mechanisms to make that possible. This means that having your card online doesn’t make it automatically less safe than a plastic card, on the contrary, it may be safer in some cases.
- Accessibility: We’ve mentioned this already but fintech credit cards are much easier to use than conventional ones. You just need your phone and you can manage your money the way you want and need wherever you are.
- Other benefits: Aside from having both a plastic and a digital card, fintech cards can provide you with other services and benefits that plastic cards only can’t give you. These include higher rewards, buy now pay later (BNPL), opportunities for credit building, and an easier way to manage how much and where you’re spending.
Disadvantages of the Best Fintech Credit Cards
- Supported Locations: Some more specific cards may not yet be supported at all merchants, offline or in physical locations. Traditional bank cards are still more widely adopted than fintech cards.
- Level of technical skills: You need to have basic technical literacy to operate with a fintech card. That would mean you’ll have to know how to download the card’s app and use it and though they’re made to be fairly easy to understand by everyone who owns a smartphone, this may be challenging for some people.
List of the Best Fintech Credit Cards in 2022
Luckily for fans of alternative finances, fintech is growing quite rapidly. That means that many companies are offering their services and while we can’t cover all of them in detail, here we’ll mention some of the best fintech credit cards in 2022.
- Aspiration
- Chime
- Revolut
- cred.ai
- Paysafe
- TomoCredit
- Jeeves
The Best Fintech Credit Cards: Aspiration
Aspiration has made sustainability its main goal. They advocate for customers to leave traditional banks, along with their huge negative impact on the planet, and save Earth by choosing this fintech card provider. They offer one of the best fintech credit cards but not only that, it continues their cause by turning each Zero credit card purchase into a newly planted tree. The company also claims to not be using customers’ money to fund oil pipelines or pay for political campaigns, sticking to its rule of transparency and sustainability.
The Best Fintech Credit Cards: Chime
Chime is another provider of the best fintech credit cards in 2022 as they offer various mobile banking services, including sending money to your family and friends without any taxes, regardless of the bank services the recipient uses. This can be done through the digital card of Chime and you can get a free plastic debit or credit card as well, through which you can access similar benefits. You won’t be charged overdraft fees and like similar fintech companies you have the option to get your paycheck earlier, you don’t have monthly feeds and you can take advantage of a high-yield savings account.
The Best Fintech Credit Cards: Revolut
If you seek a company that provides not only the best fintech credit cards but also other services, Revolut is your best bet. On their platform, you’ll find a currency exchange, cryptocurrencies like Bitcoin, and other popular altcoins, commodities, and commission-free stock trading. This company provides you with a digital, as well as a plastic fintech card which you can use worldwide with no hidden fees. The Revolut cards let you pay interest in up to 62 days and for the first three months of your purchases through their service you each 1% cashback.
The Best Fintech Credit Cards: cred.ai
Cred.ai is one of the best fintech credit cards providers that explicitly has declared its rivalry with traditional finances. They provide a mobile app with a fintech card, as well as a metal physical card. The advantages of using cred.ai’s cards include receiving your payment up to two days earlier, not paying interest or fees, and controlling your overspending. This fintech company also gives its users more benefits, such as the Stealth Card which can be used for more secure one-time payments online.
The Best Fintech Credit Cards: Paysafe
The multinational payments company Paysafe is on our list of the best fintech credit cards in 2022 for its service Paysafecard. This isn’t a typical credit card, instead, it’s one of the interesting fintech approaches to modernizing finances. The service works through vouchers with a 16-digit PIN code, and if you’re looking for a payment that’s completely independent of any personal information, being a bank account or credit card number, then Paysafecard is for you. This fintech service is limited locally, meaning the number of vouchers you can buy will depend on your residential address, as well as are you registered on their site. But if it fulfills your needs, you can use it as an alternative to bank cards when paying online.
The Best Fintech Credit Cards: TomoCredit
If you’re a young person looking for the best fintech credit cards or an immigrant who needs a card but can’t provide a reliable credit score to a bank, TomoCredit may be a solution for you. The company is directing its services towards young people, students, and young adults, as well as immigrants, as mentioned, who are financially struggling and need to manage their funds but can’t open a traditional bank account. TomoCredit also gives different rewards to its users for paying with the card at different merchants.
The Best Fintech Credit Cards: Jeeves
Jeeves is among the best fintech credit cards if you’re a business owner. This company provides an all-in-one expense management platform for companies. If you use their services you can benefit from unlimited cards for your employees who can earn up to 4% cashback from using them.
Would You Consider Using One of the Best Fintech Credit Cards in 2022?
In this article, we took it upon ourselves to discover what fintech credit cards are, how they work and what are their benefits and disadvantages. We’ve also listed some of the best fintech credit cards in 2022 and now the question is – would you consider using them? If you’re still a supporter of plastic bank cards now that you know fintech companies provide those too, along with their apps, would that make you give them a try? It seems like you’ll have some time to decide since fintech credit cards seem to be only getting started and we can expect them to grow in popularity in the coming years.
Nobody can tell if fintech will displace traditional banking but from the looks of it, and the things discussed here, it seems like a very good alternative to it, right? The best fintech credit cards seem more eco, easy to access, and quick to use than normal bank cards. This may prompt more customers to turn to them in the future, even people who aren’t fans of technology that much. You can decide for yourself if you want to use these cards or not, but definitely keep an eye on them, as they may be the new norm very soon and you wouldn’t want to have missed it.
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