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Mercury Financial secures a USD 200 million debt facility

Monday 31 July 2023 08:28 CET | News

Financial inclusion technology firm Mercury Financial has closed a USD 200 million debt facility to develop its credit card business for middle-class American users. 

The investment was led by Neuberger Berman, which managed the client and user funds. Following this announcement, Mercury is set to use the money in order to expand its credit card business. Moreover, the company will focus on continuing its process of providing middle-class USD-based customers with financial products and solutions that aim to make their payment experience more efficient and secure. 

American clients will be enabled to use its services in order to improve the manner in which they manage their credit. By utilising proprietary data, Mercury Financial’s business model leverages over 100 million data points that are used to meet the needs, preferences, and demands of customers. 

The digital toolset includes the company’s mobile application, which allows Mercury Financial to encourage and drive enhanced credit use for clients. The enterprise will also use the proceeds of the investment in order to develop new credit card accounts, fund the development and growth of its existing card member relationship, as well as to improve new capabilities to upgrade its customer experience even further. 

Financial inclusion technology firm Mercury Financial has closed a USD 200 million debt facility to develop its credit card business for middle-class American users.

 

Mercury Financial’s strategy of development

Mercury Financial offered near-prime borrowers and customers credit access with an improved level of experience at the beginning of May 2023. According to the press release published at the time, the company provided new benefits and rewards, offered cards without annual setup fees, as well as flexible payment methods and options. 

Earlier in April 2023, the company announced its partnership with Tax Software April. The AI-powered tax software startup April launched the complete version of its automated e-filing capability, Axions. The firm integrated its technology into the software of multiple banks and financial institutions while working inside platforms such as Mercury Financial and Acorns. 

The aim of the collaborations was focused on offering taxpayers the possibility to get a real-time sense of what their tax bills might look like before the deadlines that were set to come every year. 

Mercury Financial completed its sale of USD 450 million in credit card asset-backed securities (ABS) back in 2022. The Series 2022-1 notes marked the second term issuance from the company’s master trust, and it consisted at the time of approximately USD 385 million in A rated bonds, as well as USD 51 million in BBB rated bonds, and USD 14 million in BB+ rated bonds. 

The transaction was led by the Kroll Bond Rating Agency and other additional companies, and it focused on underscoring the development of Mercury Financial’s purpose-driven business model and targeting technologies that were prioritising the numerous customers in the near-prime credit segment. 



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Keywords: funding, investment, mobile payments, online payments, digital payments, payments , financial services
Categories: Payments & Commerce
Companies: Mercury Financial
Countries: United States
This article is part of category

Payments & Commerce

Mercury Financial

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