Finance Everywhere, Member Exclusive

‘The LuluLemon of credit cards’: Paceline launches a credit card that pays users for exercising

  • Health and fitness app Paceline announced a new health and wellness credit card.
  • Paceline’s credit card will reward members with cashback for their spending and physical activity milestones.
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‘The LuluLemon of credit cards’: Paceline launches a credit card that pays users for exercising

The health and wellness sector is a sizable untapped market for the financial services industry. Ecosystems like health and wellness have a symbiotic relationship with financial wellbeing. According to data from the 2013 Panel Survey of Income Dynamics, as household wealth increases the percentage of people who report poor health decreases. 

Last month, retail fitness rewards platform and app Paceline announced the Paceline credit card, which pays users for exercising. The credit card offering will allow consumers to earn cash back based on what they spend and the level of their physical activity. Paceline incentivizes healthy lifestyles for its members through its line of reward offerings from health and wellness brands such as Sunbasket, Athleta and Echelon.

“Our existing users spend nearly half of their monthly total spend on health and wellness gym memberships, apparel, equipment, and groceries,” said Joel Lieginger, Paceline’s founder and CEO. “Through our own credit card, we can enhance this experience further by using credit card rewards to further increase physical activity, creating a virtuous cycle to change the nature of preventive health in society.”

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The Paceline credit card will offer consumers cashback on health and wellness related transactions when they achieve weekly fitness milestones on the Paceline app. Active Paceline users will be the first to gain access to the credit card upon its expected availability, this summer. Paceline’s active users have logged in around 4.6 million workouts totaling 128 million minutes. 

Paceline’s credit card will be built using Railsbank’s credit card as a service offering which was launched in the fourth quarter of 2020.

“CCaaS prebuilt the entire infrastructure needed to launch a credit card fast, taking on the heavy lifting such as banking, credit, payments operations, risk management and compliance. It lets Paceline focus on UX, customer experience and differentiating their brand from anything else on the market,” said Dov Marmor, Railsbank’s chief operating officer for North America. 

According to Lieginger, Paceline customers have earned and redeemed more than 358,000 rewards to more than 60 brand partners representing over $1,000,000 in rewards value since the company’s beta program launch in January of 2020. 

“If we execute on our plans correctly, this could be the LuluLemon of credit cards and we’re just getting started,” said Marmor. “Customers should embrace it because it’s a financial product that enriches their lives both financially and physically.  What if your spend patterns could help you get healthier, and your health patterns could help you earn more money?”

Paceline’s wellness credit card is one of the first of its kind to be unveiled in the U.S. Healthcare financing company CareCredit’s credit card offers a variety of health and wellness themed offerings, including 18 month promotional financing on Bowflex fitness equipment. 

In January of this year, India based Yes Bank launched its own health and wellness credit card which targets the wellness needs of its consumers through its health based offers and rewards program. In the same month, Axis Bank, also based in India, released its health and wellness credit card that provides discounts to medical check ups and fitness program offerings. 

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