How Fizz Uses Knot’s CardSwitcher to Elevate Student Banking
Fizz, a fintech company that aims to help students build their credit with the security of a debit card, partnered with Knot to overcome the challenges of instantly bringing cards to top-of-wallet status on merchant platforms. With Knot’s CardSwitcher product, 62% of Fizz users initiated transactions within the first four days, outperforming the industry average of 10 days. Users switching cards through Knot also exhibited a 20% increase in monthly spend. This collaboration not only improved end-user experiences but also boosted Fizz’s top-line revenue.
Challenge
Fizz needed a solution that allowed their users to add their new Fizz card as the default card on merchants’ platforms with ease.
Solution
Knot partnered with Fizz to instantly bring their users’ new cards to default status on various merchant platforms, decreasing the time it takes for users to make their first transaction with their new cards.
Company Overview
Motivated by their own experiences of being denied credit cards due to their international student status, co-Founders Carlo Kobe and Scott Smith dove into creating a solution for a pain point that affects an astounding 90% of 18 to 20-year olds who lack a credit history.
To address this gap, they built Fizz, a financial solution that seeks to be an ally to young adults who lack a credit history. Their approach seamlessly combines the activity of credit-building with the debit card experience, eliminating the need for credit checks and guaranteeing immediate approval for new applicants.
In addition, Fizz’s in-app features like SafeFreeze & Daily Autopay provide a safeguard against overspending and the risk of debt accumulation, providing their users peace of mind while building their credit effectively.
The Pain Point
Fizz’s student-friendly solution resonated deeply with its target audience from day one, shown by a surge in sign-ups on their launch day. However, it was important for Fizz to build an experience that saw its users promptly activating their cards after signing up and making it their primary spending tool.
These challenges persisted because their users, who often relied on traditional debit cards for daily activities, already had their existing cards linked to their favorite merchants, such as Amazon, Spotify, and Netflix.
Recognizing the difficulties of facing this challenge alone, Fizz turned to Knot’s CardSwitcher™ to help address this issue.
The Solution
Fizz chose to integrate with Knot’s CardSwitcher™ product. With Knot, Fizz cardholders gained the ability to add their Fizz Card to their frequently used merchants in seconds, streamlining a process that would otherwise have taken upwards of ten minutes.
“Making the process of putting Fizz top-of-wallet as smooth as possible for our users is a huge priority. Knot’s CardSwitcher has been instrumental in helping us achieve market-leading adoption rates.”
Improved End User Experience
Fizz partners with an extensive range of popular college-friendly merchants, making its comprehensive Cash Back Rewards program appealing for new users.
These users are typically eager to start capitalizing on these rewards, but they face a significant cognitive hurdle—replacing their existing card with their new Fizz Card on merchants that they already shop with is a tedious process that often involves over 25 manual steps.
By reducing this process to seconds, Knot has helped Fizz in increasing cardholder transaction volume, cultivating a positive in-app user experience and sustaining cardholder loyalty.
Better Top Line Revenue
Knot slashed the time to first transaction to just 4 days from the industry norm of 10, accelerating revenue generation and setting a new benchmark for cardholder efficiency.
Furthermore, users who leverage Knot to switch their cards experience a 20% increase in monthly spend on their newly issued card compared to those who do not, contributing to a meaningful boost in interchange revenue for Fizz.
Ultimately, Fizz cardholders who use Knot to replace their cards on merchants’ platforms can maximize the advantages offered by their Fizz cards in a faster manner than their counterparts who don’t.
The Future of the Partnership
Having been awarded one of the “Best Credit Builder” solutions by Business Insider in 2023, Fizz is committed to continue building out products that better serve the oft-overlooked “credit invisible” segment of college students in the United States. Knot continues to support Fizz in prioritizing this mission while reducing the time until first spend, increasing transaction volume, and adding $16+ to Fizz’s ARPU.
