A Canadian financial technology firm today introduced a payment card targeting Canadian homeowners aged 55 and older.
Toronto’s Bloom Finance says that its new Bloom Home Equity Prepaid Mastercard addresses a “pressing need for innovation within the financial landscape for . . . the unique requirements of Canadian retirees who own their homes.”
The card functions like any other payment card at the point of sale, in-store or online, Bloom says.
Leveraging the firm’s “unique home equity release structure,” the card comes with no monthly bill, and amounts spent by clients do not need to be repaid until they pass away or choose to sell their home in the future.
“The launch of our Bloom Home Equity Prepaid Mastercard underscores our commitment to providing innovative financial solutions for Canadian retirees,” says Ben McCabe, founder of Bloom.
Launched in 2021, Bloom raised $7M before expanding to Alberta in 2023.
Alberta is one of three initial markets for the Bloom Home Equity Prepaid Mastercard, alongside B.C. and the company’s home base, Ontario.
Also available in Alberta is the fintech’s “reverse mortgage” product, which allows retired Canadian homeowners to access up to 55% of their home’s value in tax-free cash without having to move or lose ownership of their home.
The logic behind Bloom’s product target aim hails from market data the fintech compiled.
Three-quarters of Canadian retirees own their homes, and yet a Bloom survey of Angus Reid forum members found that two-thirds of elderly Canadian homeowners share the concern that bank savings may not suffice to sustain quality of life through retirement due to rising costs of living across Canada.
By enabling micro equity access on an as-needed basis, Bloom’s offerings provide a sustainable solution to homeowners navigating financial challenges in retirement, according to the fintech.
Home equity tapping is a service that a majority of older Canadian homeowners reported would significantly help maintain their desired living standard, which McCabe says is the mission of his startup.
“In today’s economic climate, older homeowners are facing unprecedented challenges,” McCabe says. “Our mission is to provide them with a responsible and sustainable means of accessing the wealth they’ve accumulated, to live more comfortably in their latter decades of life.”
According to Hasan Nizami, Head of Product at Bloom, having the ability to unlock one’s home equity in a flexible fashion is indeed an important feature to the company’s clients.
“We’re proud to have developed a product that enables just that—assisting a demographic that historically lacked financial services innovation in Canada and globally,” Nizami stated.
Bloom noted that it is partnering with Ontario-based embedded fintech firm Berkeley Payment Solutions on its latest product rollout.
“Bloom is doing something really special in Canada and we are honoured to be a part of it,” stated Berkeley CEO Lawrence Tepperman.
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