Fintech startup raises $4.7 million in seed funding empowering inaugural brands including Casper, Candid, and Camp to offer cash rewards that incentivize customers to save for purchases
Accrue Savings, the merchant-embedded shopping experience that rewards consumers for saving, launches to diversify payment options for brands and consumers. The company, founded by entrepreneur Michael Hershfield, raised $4.7 million in a seed funding round backed by investors Twelve Below, Box Group, Ground Up Ventures, Red Sea Ventures, Good Friends, Silas Capital Ventures, Hanaco Ventures, amongst others. Inaugural retail partners at launch include Casper Camp, and Candid, with more to come.
Accrue Savings is a financial technology company that provides access to an FDIC account which ties to a specific purchase that helps consumers save for the product or service they love and want while earning cash rewards from their favorite brands. Customers are able to choose the timeline for their savings journey, and brands provide cash incentives to reward shoppers for saving.
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As they save, consumers can share what they are saving for — and ask friends and family to contribute — empowering loved ones to participate and, ultimately, making that final purchase a debt-free personal achievement.
Brands that partner with Accrue Savings can strengthen and broaden their consumer base. Brands can finally incentivize customers who choose saving over debt by offering them cash rewards when they meet milestones on their savings journey. When customers elect a savings-based shopping strategy, these brand partners will be in lockstep with their customers’ purchasing plans. Additionally, with customer acquisition costs on the rise and the ongoing battle with online shopping cart abandonment, Accrue Savings also expands addressable audiences by increasing accessibility to products and services.
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“With 66 percent of consumers viewing ‘Buy Now, Pay Later’ programs as financially risky, Accrue Savings rewards people for saving for the things they want instead of taking on more debt,” said Hershfield, founder and CEO of Accrue Savings. “As the first payment option that empowers consumers to avoid the costs of credit, Accrue Savings strengthens the relationship and loyalty between brands and consumers and rewards responsible debt-free spending.”
“Brands are increasingly seeking ways to deepen their relationships with consumers that don’t rely on debt. Accrue Savings is an ingenious, long-overdue alternative that rewards customers with cash incentives just for saving,” said Taylor Greene, Managing Partner, Twelve Below. “With Accrue Savings, merchants can build brand affinity and brand access by impactfully redirecting rising CAC costs and putting that money directly into customers’ pockets.”