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.
close

Email a Friend

‘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.”

SPONSORED

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. 

0 comments on “‘The LuluLemon of credit cards’: Paceline launches a credit card that pays users for exercising”

Outlier OpinionsMakers

10-Q, Member Exclusive

Guilty or not guilty: Deutsche Bank is ready to pay $75 million in Epstein settlement

  • Deutsche Bank hasn’t come clean about its involvement with the Epstein crime. However, the bank addressed the situation by saying that it has strengthened and invested in its anti-financial crime controls.
  • Upstart is up almost 80% in 2023 so far. The news of multiple funding agreements being worked on by the company rebounded the stock nearly 47% in a week.
Sara Khairi | May 22, 2023
Banking, Lending, Member Exclusive

Unlicensed lending, misleading practices, and legal actions: Is SoLo Funds in trouble?

  • Attorney General for the District of Columbia and the California DFPI have penalized SoLo Funds for breaching a number of consumer protection laws.
  • The DFPI also issued a consent order for the Black-owned firm, which is raising eyebrows and more questions.
Sara Khairi | May 17, 2023
10-Q, Member Exclusive

Robinhood’s losses override revenue, PayPal’s stock dips, while Dave delivers more than expected in Q1

  • Everything investors need to know about Robinhood, PayPal, and Dave’s Q1 2023 earnings.
  • Some important fintech stocks are on the path to recovery, while others crashed on Q1 earnings.
Sara Khairi | May 15, 2023
10-Q, Member Exclusive

PacWest nearing collapse comes hard on the heels of the First Republic crash

  • The bank crisis is nowhere near the end -- what's next for First Republic, PacWest, and bank stocks at large?
  • MoneyLion stock has gained 34% in the past week ahead of its upcoming Q1 2023 financial results.
Sara Khairi | May 08, 2023
10-Q, Member Exclusive

Visa vs. Mastercard: Who had a stronger quarter?

  • Quarterly results of both payment leaders are out, indicating resilient consumer spending throughout the period.
  • MoneyLion has approved a 1-for-30 reverse stock split of MoneyLion’s Class A common stock.
Sara Khairi | May 01, 2023
More Articles