Upgrade upgrades to Upgrade OneCard

US-based fintech Upgrade has launched Upgrade OneCard, giving users a single card to meet all their payments needs.

Cardholders use the “Pay Now” option for everyday expenses to make sure they stay within budget and avoid paying interest or fee charges, and use “Pay Later” to spread payments over time.

Upgrade told finContent that it offers affordable and responsible credit, mobile banking and payment products to mainstream consumers.

A new Upgrade survey of 2,041 US adult consumers conducted by The Harris Poll from May 31 through June 2nd, 2022, surfaced key findings:

  • among Americans who use both, the number one reason for using a credit card over a debit card, is to earn better rewards (74%). The ability to carry over the balance and pay later (56%) and better fraud protection (48%) round out the top 3 reasons for choosing a credit card over a debit card;
  • among Americans who use both, the number one reason for using a debit card over a credit card, is to help stick to their budget and only spend the money they already have (61%). A desire to avoid incurring interest if they don’t pay off the balance (45%) and late fees (37%) follow as the 2nd and 3rd reasons for choosing a debit card over a credit card.

“When paying for everyday expenses, consumers historically had to choose between a debit card to ensure they stay within budget, and a credit card to earn rewards,” said Renaud Laplanche, co-founder and CEO at Upgrade. “With Upgrade OneCard, consumers don’t have to make that choice anymore: they can use Pay Now for everyday expenses to avoid interest and fee charges, while earning credit card rewards without running the risk of falling into credit card debt.”

Upgrade OneCard claims to combine the benefits of both credit and debit cards. Designating purchases as Pay Now helps users stay within budget and avoid any interest or fee charges, while using Pay Later lets users spread their payments over time. Users earn attractive rewards on both Pay Now and Pay Later purchases: 3% cashback on many everyday purchases including restaurants, gas stations, and drug stores, and 2% cashback on all other purchases when combined with an Upgrade Rewards Checking Account. Both options offer the fraud protection of credit cards. 

Upgrade OneCard is a credit card that includes a Pay Now option which pays off selected purchases automatically from the cardholder’s bank account the day after the purchase settles. This can help users avoid creating unintentional credit card debt on everyday charges that they intend to pay for right away. For purchases that users want to pay for over a few months or years, the Pay Later option lets them pay off their purchases responsibly with fixed installment plans. Upgrade OneCard is a Visa card; all charges will settle through the Visa network.

“Consumers are looking for more flexibility and control in how and when they spend their money. We’re excited to work with fintechs like Upgrade who are rethinking the traditional credit card model to answer shifting needs and demands of today’s consumers,” said Vanessa Colella, SVP and Global Head of Innovation and Digital Partnerships, Visa.