Investing app M1 Finance is launching its first credit card product on the heels of its $150 million fundraise, and it's helping shoppers earn extra cash back when they buy from certain retailers where they own stock.
M1, a no-fee investing app, announced Wednesday the launch of the Owner’s Rewards Card by M1, a credit card where you can earn up to 10% cash back when you spend at select companies you've invested in through the M1 app. Those companies currently include Amazon, Starbucks, Target, Delta Airlines, Nike, DoorDash and Netflix, with more brands coming soon, M1 said.
The amount of cash back at these companies ranges from 2.5% to 10%, and card holders can chose to have their cash back automatically invested back into their portfolio, the company said. M1's credit card offers 1.5% cash back on all other purchases.
M1 also operates a checking account, called M1 Spend, where users can pay off their credit card balance. It's all part of a plan by the Chicago startup to create a one-stop-shop finance app for consumers, CEO Brian Barnes said.
“We started M1 as a free investment platform, but our vision from day one was to give clients a single, integrated platform for all of their financial needs,” Barnes said in a statement.
Earlier this month M1 raised $150 million at a $1.45 billion valuation. The startup now manages more than $4.5 billion in assets and has more than 265 employees.
