Petal, a US credit card startup that is ditching traditional credit scores in an effort to sign up young people and the underbanked, has raised $35 million in funding and spun off is B2B-focused subsidiary Prism Data.
Founded in 2016, Petal offers a Visa credit card that people can qualify for even if they’ve never used credit before. Instead of relying solely on credit scores, the firm has built proprietary technology that analyses banking history—measuring creditworthiness based on income, spending, and savings.
The process, referred to as “Cash Scoring”, measures economic fundamentals that aren’t typically considered in a credit approval decision, helping people that traditionally have trouble getting credit. Once approved, customers get a mobile app where members can automate payments, track their credit scores, manage subscriptions, and…