BIRMINGHAM, Ala., April 16, 2020 /PRNewswire/ -- University Fancards LLC, the country's only provider of college and university-branded prepaid Gift and Reloadable cards, announced today the initial closing of its first round of Series A institutional financing, raising in excess of $4.0 million. Lead investors include Zach McElroy, the founder of Zaxby's, and MetaBank (CASH-Nasdaq).
The most recent capital raise by Fancards is part of a $5.5 million raise expected to be completed in 2020. As part of the transaction, previous investors holding convertible notes received Series A equity, eliminating over $4.4 million of company debt.
With this capital, Fancards will further grow its university-branded Mastercard Gift and General Purpose Reloadable ("GPR") card programs through its online site and in major retail locations. Fancards continues to roll out its direct-to-consumer distribution of prepaid GPR cards through Usio that allows fans across the country to share their school loyalty and passion while using their personalized card everywhere Debit Mastercard is accepted. Fancards Prepaid Reloadable cards include over 40 unique card designs available in Apple Wallet for fans to utilize contactless payments.
University Fancards co-founder and CEO Lynn Boggs, a payments technology industry veteran, stated "We are excited to see the continued support of our vision for collegiately-licensed prepaid cards. We are grateful to have completed this funding during such a trying and unusual time for our country and the world."
Mr. Boggs continued, "During the 2nd quarter of 2020, we will continue to see rapid expansion of our Prepaid Reloadable card as we have partnered with Netspend, a division of Global Payments to distribute our cards nationwide through their network of retailers in the United States. Beginning in May, you will find our Prepaid Reloadable cards in thousands of retail locations including Dollar General, Kwik Trip, Cumberland Farms, and The Exchange, among others."
As for its university-branded Mastercard Gift cards, this year Fancards will continue to expand its retail presence in approximately 15,000 locations nationwide, including some of the most recognizable big box and grocery retailers in the country.
Robert Walker, Chairman of the Board noted, "We are thrilled to have Zach McElroy, founder of Zaxby's, join our Board, given his tremendous entrepreneurial success and long history of sports promotional activity. We also are excited to be recognized by MetaBank, one of the leading financial institutions in FinTech and prepaid."
Mr. Boggs continued, "This financing, together with recent partnerships with major retailers, will allow us to significantly increase our market presence across the country. In addition, we are focused on rapidly expanding our digital media campaign to bring awareness of our reloadable cards to the passionate fanbases of our Fancard teams, with reloadable cards available for direct ordering and delivery from myFancard.com"
The Fancard Prepaid Mastercard is issued by Sunrise Banks N.A., Member FDIC pursuant to a license from Mastercard International Incorporated. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated. This card may be used everywhere Debit Mastercard is accepted.
As the nation's leading provider of collegiately-licensed prepaid products, Fancards creates new ways for fans to pay with team pride through a fintech-focused approach designed to reach every fan of over 25 partner universities. Fancards collegiate partnerships include premier brands such as the Alabama Crimson Tide, Florida Gators, Michigan Wolverines, Texas Longhorns, and more.For more information, please visit www.myFancard.com, follow us on Facebook, Twitter, Instagram, LinkedIn, or contact Fancards at [email protected].
SOURCE University Fancards