Financial startup SoFi has changed its payment partner from Visa to Mastercard, allowing SoFi to ramp up its rewards program, offering complimentary cellphone insurance, cash-back rewards and discounted airport concierge services for customers.

“It is imperative that our partners are leaders in technological innovation, security and enhanced benefits, and Mastercard is an industry leader across all of those areas,” SoFi CEO Anthony Noto said in a statement. SoFi was unavailable for comment by press time. 

Mastercard’s partnership with SoFi is part of its ongoing effort to work with fintech partners. John Levitsky, executive vice president at Mastercard, highlighted to Bank Innovation that working with a successful high-growth company like SoFi benefits Mastercard.

“They’re lined up for success,” he said of SoFi, noting that it is “a company that skews younger. They’re affluent, and so our brand was a perfect fit for them.”  

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In October 2019, Mastercard announced its launch of Mastercard Accelerate, an initiative that simplifies how it works with fintech companies, offering them tools to scale. The program offers the partnering fintech companies access to Mastercard’s portfolio, support and assistance to expand globally. Accelerate program participants work closely with various areas of Mastercard’s business to help fintech companies enhance their product suites and reach new markets. Mastercard has reportedly worked with several companies, including Transferwise, Branch and Brex.

“It’s always a collaborative partnership. [Mastercard is] not really plugging in solutions and then just leaving them to figure it out,” a Mastercard spokeswoman told Bank Innovation, adding that SoFi “is using and leveraging our technology and our deep industry expertise.“ 

Levitsky added that Mastercard’s marketing strategy and target clients align with SoFi’s, making the partnership mutually beneficial. 

“With Mastercard, we will leverage their stellar payments network to develop new products, benefits and experiences,” a statement from SoFi said. “Members holding certain SoFi and Mastercard products will be able to take advantage of an enriched fan experience at SoFi Stadium, opening in Los Angeles later this year.” 

San Francisco-based SoFi, established in 2011, offers its customers banking, lending and investing products. SoFi is not a bank, but partners with institutions to offer its customers banking products. The company last year closed more than $500 million in equity financing led by Qatar Investment Authority, which valued the company at $4.3 billion on a pre-money basis. It reportedly has 9 million users across its various products and services.

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