Renad Laplanch, CEO of Ashashl, spoke at a 2018 conference in Brooklyn, New York.

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Upgrade.CNBC has learned that Fintech has started a $ 6.28 billion fundraising round that will turn credit card debt into mortgage loans.

The company will be led by new investors Coatu Management and DST Global in the USF round of $ 280 million, said Renad Laplanci, CEO of Ashash. This is an 83% jump this year, up from $ 3.43 billion.

Most of the increase was due to the San Francisco-based company’s revenue growth, which increased by 70% between June and October, Laplan said in an interview.

The main product of the upgrade is a card that converts purchases into fixed amounts, which allows the new company to “benefit”.Buy now, pay later.“Trends in Fintech. Traditional Cards When Charging More than 18% With an annual interest rate, the upgrade card starts at 8.99 percent, Laplanche said. This makes it one of the fastest growing cards in the country, says an industry newspaper Nelson Report.

“Consumers are reaping the benefits of a credit card that offers comfort but does not lead to debt,” Laplanch said. “Traditional credit cards are bad consumer products with very high interest rates and high fees. They are designed to keep people in debt as much as possible.”

Fintec companies that “buy now, pay later” include Fenttech, which is a major market for US consumer loans. prove it As well as more diverse players Sophie, Goldman Sachs‘Marcus Brand and Lender ClubCo-founded by Laplanche.

But consumer credit is still held by credit card giants, including traditional banks. JPMorgan Chase And Citigroup. Some Fintec have little incentive to copy user-friendly features as this will reduce profits from their huge credit card portfolio, says LaPanche.

“They have no interest in changing this behavior,” he said. “The upgrade card should have come from a bank but did not work. It is less profitable than a traditional card because the balance will be reduced quickly but it is a better deal for users.”

Like other Fintech players, a one-stop shop has finally begun to emerge as a one-stop shop for consumer finance. It offers checking accounts, a 2% cash back debit card and a credit card that pays bitcoin prizes. About 10% of the new cards issued at the launch are bitcoin prize cards, Laplanch said.

The company He said he was preparing to make it public by 2023.

“We’re growing fast and profitable,” Laplanch said. “We are now working to get ready in 18 months.”

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