US digital challenger Dave has announced an exclusive agreement with Mastercard to power its debit cards.
Dave began a limited, early release roll-out of Dave Banking in May. This is an app-based spending account with Mastercard debit card with no hidden fees and no minimum balance.
Since the May release, Dave says that 100,000 customers have signed up the service. According to Dave, it is on track to sign up 1 million Dave Banking customers by the end of 2020.
Product features include a $100 advance at no cost from an upcoming pay cheque. Through a partnership with LevelCredit, Dave Banking customers can also augment their credit scores. Dave claims that customers who use the credit-building feature boost their credit score by 50 points.
Dave banking: $1 per month to access features including:
- Automated Budgeting: Dave uses machine learning to tell customers how much they have available to spend until they get paid next.
- Helpful Texts and Alerts: When Dave’s machine learning budgeting tool anticipates an upcoming expense may cause a customer to overdraft, Dave sends a text or alert, and
- “Side Hustle”: Dave has an exclusive job-finding tool called Side Hustle to help customers find side income opportunities like dog walking and tutoring.
“We started Dave initially as a set of tools for Americans just starting their financial lives or looking to improve their finances, but we always had the long-term vision of becoming their primary bank,” says Jason Wilk, CEO and co-founder of Dave.
Dave and Mastercard: ideal partners
“As Dave’s spending account rolls out to millions of our customers over the coming months, we are now seeing that vision realised. With Mastercard’s focus on financial inclusion and its alignment with our mission, they are the ideal partner for Dave’s next phase of growth.”
“Dave is clearing the path for Americans seeking financial health through its digital banking tools,” adds Sherri Haymond, executive vice president, Digital Partnerships at Mastercard.
“Given our shared commitment to bringing consumers into the digital economy through next-generation financial products, we’re excited to be working with Dave as the exclusive network for their emerging banking services.”