Pesto launches asset-backed Credit Card

By Delisha Fernandes

Pesto announced the launch of its product, Pesto Mastercard issued by Continental Bank, a credit card that enables customers to use valuables as collateral to secure a credit card.

Consumers send Pesto their assets and are provided with a credit card based on their value, regardless of credit score. Over time, cardholders who often don’t qualify for an unsecured credit card can increase their credit score and eventually qualify for one. Pesto Mastercard offers rates similar to existing credit cards.

James Savoldelli, founder and CEO of Pesto, said, “Our first product, Pesto Mastercard, offers interest rates at only a fraction of today’s alternatives, often 90% less than many equivalent pawn loans. It’s a paradigm shift in the credit card market, with the potential to democratise credit truly. Pesto is on a mission to help all Americans find an alternative to high-interest rate loans by providing a straightforward way to secure liquidity and build credit through their assets without selling them.”

The company intends to use the funding to expand its customer base across the US, with an initial focus on Atlanta and Los Angeles. The company has raised funding from notable investors, including; Activant Capital, Plural, Sozo Ventures, Commerce Ventures, NJF Capital, Soma Capital, NOMO Ventures, Commerce Ventures, Human Capital, OVO Fund, OEL Ventures, Core Innovation Capital, Great Oaks VC, and Y Combinator.

“Existing loan products don’t do enough to help these consumers become more financially free,” said Nathan Morgan, Founder & CEO Continental Bank’s. “We are passionate about supporting Pesto’s mission to make lending more affordable, safe, and accessible.“

Pesto was founded in 2020 to provide a solution for Americans that offers a pathway to rebuild or establish credit at lower rates. It will continue to build its products to enable customers to leverage their assets to obtain credit, thereby creating a path to a more financially secure future.