A lot of focus is being put on climate change. That seemingly allows financial institutions to launch a new product tied to this movement.
Mogo, a Canadian fintech player, is launching a new payment card. It is linked to its MogoSpend digital spending account.
The MogoSpend Venture
It is crucial for financial service providers to keep innovating and competing. Launching new products and services is often the best option to explore. Mogo, a Canadian fintech startup, is effectively trying to combine climate change efforts with traditional spending. A unique approach, and one that may certainly be appreciated by its clients.
What makes MogoSpend so interesting is the linked payment card. It is a Visa Platium Prepaid Card tied to carbon offset. More specifically, the card helps users earn a cashback while offsetting their carbon footprint in the process.
It is the first offering on this level to help Canadians with their spending. A lot of households struggle to stick to their budgets. This can incur severe financial losses when not kept in check. A product of this magnitude may help residents prevent these types of mishaps in the future.
Rewarding Climate Action
As the recent focus has shifted to climate action, Mogo wants to contribute in its way. That is often much easier said than done in the fintech industry. The MogoSpend card will contribute to climate action directly. Every Canadian dollar spent through the card will offset one pound of CO2.
To achieve this goal, Mogo partners Offsetters. That company is one of Canada’s leading providers of carbon-management solutions. It is not unlikely that other financial service providers will launch very similar products in the coming months.
To incentivize spending with the card, Mogo will provide unlimited cashback. A fixed rate of 1.5% will apply to all domestic purchases. Foreign currency purchases will earn 3% per transaction. Generating more cashback means more spending and thus better climate action. It is a win-win-win solution for all parties in the process.