Aspiration Discontinuing Zero Credit Card, Continues Pivot
holding the Aspiration Zero credit card

Aspiration Discontinuing Zero Credit Card, Continues Pivot

The climate-conscious FinTech Aspiration is making some changes. This week, the company announced that it was discontinuing its Aspiration Zero credit card.

According to an FAQ page pertaining to the card, the neobank notes that all Aspiration Zero accounts will be closed as of May 3rd, 2023. As of that date, customers will no longer be able to make purchases using their cards. However, cardholders will continue to be able to view statements and any disputed charges will be investigated even after the account closure. Additionally, customers who were charged an annual fee (the card carries a $60 annual fee) will be issued a prorated refund in the form of a statement credit. At this time, Aspiration’s Spend & Save accounts are not affected by the Zero card’s closure and will remain open.

Officially launched last year, the Aspiration Zero card allowed customers to strive for carbon neutrality, with the company vowing to plant one tree for every purchase users made with the card. Plus, cardholders had the option to round up their purchase to the nearest dollar, with the spare change being used to plant an additional tree. With Aspiration estimating that customers could offset their average carbon emissions by planting 60 trees a month, those who made at least 60 purchases per month with the card (or 30 purchases per month with the round-up option activated) would be rewarded by earning 1% cashback.

News of the Aspiration Zero card’s discontinuation comes as the neobank continues to pivot from consumer banking to selling carbon credits to businesses. In turn, the FinTech is planning to cut 180 positions next month — which, as Forbes reports, amounts to more than half of the firm’s current staff. The apparent shift in strategy is also evident on Aspiration’s site where the debit card and savings account features are displayed only near the bottom of the page.

Of note, in October of last year, Aspiration named Olivia Albrecht as its Chief Executive Officer. Albrecht previously served as Chief Sustainability Officer and took over the CEO position from co-founder Andrei Cherny.

While Aspiration’s Zero credit card had noble intentions, the financial proposition of the card was notably lacking. Not only did the card require customers to make a staggering number of purchases per month just to earn what most credit cards offer as a base cashback amount but the card carried an annual fee on top of that. As a result, cardholders likely needed to view the product as a charitable offering rather than a rewards credit card. That reality coupled with Aspiration’s recent pivot made the Zero card a prime target. Furthermore, while the Spend & Save accounts will continue for now, it wouldn’t be surprising if that offering was the next to go. Of course, that’s speculation at this point — so we’ll need to wait and see what becomes of Aspiration as the company continues to evolve.

Leave a Reply

The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

A Guide to Building Credit and Increasing Your Credit Scores

When it comes to credit, there’s some good news. The average credit score in the United States has been steadily rising in recent years, coming in at 715 in 2023. That may be because, today, consumers not only have more ways to access their credit reports and scores than ever before but also because there are an increasing number of options that Americans have for building credit in the first...

2024 SoFi Checking and Savings Review

Ever since I started taking an interest in the FinTech sector, one company whose name I’ve seen pop up over and over again is SoFi. Lately it seems as though that theme has been sent into overdrive as the company has not only become a household name thanks to its stadium naming rights deal but also because of the company’s continued product expansions. The most interesting development in my mind...
Brim logo

Brim Financial Raises $85 Million as It Eyes Global Expansion

Toronto-based FinTech infrastructure startup Brim Financial has announced a new funding round. About the round: Brim has revealed an $85 million round. The Series C was led by EDC Investments while new investor Vistara Growth and returning investors White Owl Group, Epic Ventures, and Zions Bank also participated. To date, the company has now raised $110 million including a Series B in 2021. According to Brim, the latest funding will...
Chase Freedom Flex card

Chase Reveals Q2 2024 Freedom 5%(+) Bonus Categories

Chase has announced its bonus category picks for the second quarter of 2024 — including some interesting twists. About the categories: As April approaches, Chase has revealed what categories Freedom and Freedom Flex cardholders can earn bonuses on. From April 1st through June 30th, customers can earn 5% (or more) in three categories: Amazon.com, Hotels, and Restaurants. Similar to how Chase embraced a "New Year, New Me" theme last quarter,...
Rent Day

Bilt Announces Home Collection Deal for May 2024 Rent Day

For May's Rent Day, Bilt is offering a deal that will allow members to decrease their rent bill while also adding to their home decor. About the Home Collection offer: Bilt has crafted a unique Rent Day offer for May 2024. Through the 1st, when Bilt members redeem their points toward rent payments, they'll receive the same number of points to be used toward Bilt Home Collection items. To take...