Fintech startup Karat has launched a new charge card designed for YouTube, Instagram, and TikTok stars that looks at social-media engagement rather than credit history
Summary
The company is launching its first product on Thursday: a charge card for creators that it says is tailored specifically to the spending needs of YouTube, Instagram, and TikTok stars. Karat hopes to entice income-earning creators to sign up for its card by offering between 2 and 5% cash back on products that it deems useful for influencers, including camera gear, streaming equipment, and food delivery. Ahead of Thursdays launch, Karats no-fee charge card has been beta tested by the video blogger Nas Daily, the TikTok star Niko Katsuyoshi, and the gaming creators TheRussianBadger and TierZoo. The team will then evaluate whether a creator qualifies for the zero-fee card by looking at their social-media reach and engagement levels, their "operational integrity and professionalism," and documents that prove they have real income. " The need for tailored financial services in the influencer industry may be increasing as creators continue to diversify their businesses beyond sponsored posts and revenue-per-view ad programs like YouTubes AdSense.