Eve Financial is leading the interest-free credit card revolution
NOTNeed to take Fido to the vet for that mysterious pain he’s moaning about? Need to stop by the auto shop and give them a listen to that new rattle? Oh, and that nagging toothache? You should probably call the dentist for an appointment too.
Such surprises usually mean losing at least a few hundred to a few thousand dollars for services rendered, which means many people end up reaching for their credit card or seeking third-party financing to cover unexpected costs.
But what if you could swipe a card that let you pay off those expenses over the next four months at 0% interest instead?
That’s right: 0% interest for four months, every time
That’s the innovative concept behind the Eve Card, which debuted on March 30. “Eve is launching a general-purpose point-of-sale credit card for the service industry,” says Isaac Frecklesfounder and CEO of Lehi-based Financial Eve. “We focus on medical, dental, veterinary, automotive repairs, and even things like therapy or anything along those lines.”
Freckleton explains that the premise behind the Eve card is similar to the buy now/pay later trend in e-commerce. “People are taking advantage of buying now/paying later for things like a purse, a jacket, a new mattress,” Freckleton says. “But as important as these products are, we think people really need their therapist. Their dog needs care. Their children need braces.
Historically, these service providers have struggled to charge their customers for the services or fund the costs over time, Freckleton says. “The average American doesn’t even have enough to cover a surprise $300 bill, let alone engage with their service provider,” he continues. “That’s where Eve comes in. We’ve created an innovative consumer credit product that allows customers to finance themselves at 0% interest while allowing businesses to generate more revenue.”
Freckleton says Eve Financial has partnered with Mastercard to market the Eve card. It will be the first credit card to offer consumers four months of 0% interest every time they spend.
Let’s say your visit to the dentist brings in $450 for cleaning and x-rays. You have four months from the date of your appointment to pay the balance at 0% interest. Then, when you get your car repaired at the auto shop for $750; you will then have four months to repay that $750 at 0% interest.
“Each transaction starts its own rotating timeline,” Freckleton explains. “Traditionally, finance will benefit consumers by trying to determine the maximum of what you are willing pay. We hope to reverse the scenario to provide loans based on what people merit. We are the first American company to do so. Others like PayPal have a UK four month credit card concept, but there are some additional limitations on this. We removed these limitations and made it more accessible.
Disrupt the status quo
Freckleton predicts that the Eve card will be a disruptor in service funding, just as Uber has been to the taxi industry. He says that if patients or clients cannot pay out of pocket immediately, service providers typically offer financing through third-party companies such as CareCredit.
“Over 90% of businesses we spoke to are frustrated with existing financing solutions,” he says. “Some finance companies charge exorbitant fees, ranging from 6% to 20%. Our fees are set at 5.9% for most verticals.
“Or finance companies may offer a four-month payment plan, but often you’ll have to pay a quarter of the total each month. Statistics show that over 30% of people fall behind on an installment plan through a buy it now/pay later plan, which negatively impacts their credit.
“You shouldn’t have a negative impact on your credit just because you can’t pay a quarter in a given month. Being late on your credit can affect your ability to buy a home or pay lower interest rates. We offer greater flexibility, and everyone wins.
With its consumer-focused philosophy, Eve Financial adds incentives to repay expenses quickly. “We also have a really cool mechanism in place, where people who pay off their credit card at the end of the month will get 1.5% cash back,” Freckleton says. “If they don’t repay the new expense at the end of the first month, they still get the rest of the four months to repay it at 0% interest. If you don’t pay it off in four months and stretch it out, you’ll pay interest like you would any other credit card. This is unlike most credit cards, where if you don’t pay it back in full each month, you’ll be paying 20-30% interest, which is much less than 1.5% cash back.
Eve Financial will first make the Eve card available to businesses and service providers, then go direct to the consumer. “Shortly after our launch, people will also be able to apply directly online,” Freckleton said.
Find a new mission
The Eve Card is a backbone for Eve Financial, which started in November 2019 as a marketplace for funding startups and small businesses. “We have raised a total of $4.5 million to date. Our investors have been very excited to follow the products we’ve created,” says Freckleton. “We will continue to leverage and use the software we’ve built in a variety of applications, but our primary focus will be consumer loans for the services space.”
For Freckleton, this new trajectory is a dream come true. “Even when I was in college, I dreamed of starting a credit card program that could do better than most big banks are doing,” he says. “We have the opportunity to have unique meaning for investors and consumers. Eve is currently in the process of finalizing an eight-figure increase to cover the growth of the Eve Card.
With the recent launch of the card and a major round of funding on the horizon, Eve Financial is well on its way to its new mission. “We strive to provide both the user and the business with a better user experience,” says Freckleton. “Companies win; their fees are half or third lower. They don’t have to raise their prices to cover a high 20% fee, so their prices can be lower. Consumers are winners: they get a lower minimum payment while benefiting from a 0% offer. »
The next time your pup is feeling down, it might be nice to know that you can swipe a card and still have a few months to pay for that vet visit, interest-free.