The news: OnePay launched Builder Card, a secured card backed by Mastercard designed to help consumers establish and build out their credit history.

Builder Card does not require a security deposit to open an account, and cardholders do not face credit checks, interest, monthly fees, or late fees. Cardholders’ repayment histories are reported to TransUnion, Experian, and Equifax to bolster their credit histories, unless users elect to opt out.

How it works: The Builder Card uses the OnePay app to facilitate a debit-like transaction. Cardholders can only spend the available balances in their Cash accounts. 

Purchases made on the card move funds from the Cash account to a separate account that holds those deposits until the user’s monthly credit card bill is due.

Why this matters: Credit-building opportunities are tightening. Issuers that once leaned into lower- and middle-class consumers are trimming their exposure to riskier borrowers, pushing consumers with poor or thin credit histories to fintechs. 

The Builder Card stands to pick up these abandoned consumers and give them more foolproof ways to avoid overspending while building responsible financial behaviors.

Looking forward: OnePay is in a good position to attract consumers trying to build their credit histories, especially with its links to the Walmart ecosystem. 

Ninety percent of the US population lives within 10 miles of a Walmart or Sam’s Club location, per Walmart and McKinsey research. With so many US consumers frequenting these superstores for price-competitive everyday essentials, OnePay has a good chance of connecting with shoppers at high touch shopping locations in-store and online. 

Implications for fintechs: Consumers are searching for easy-to-access value from their payment products. 

Mobile-first consumer financial literacy products, like in-app budget reviews or credit building features, can help US adults feel like fintechs are improving their financial lives—and help build longer term relationships for future cross-selling opportunities.