SAN FRANCISCO—A startup online lender focused on payday loans is now turning more attention to credit cards.
LendUp Global said it raised $47.5 million in an equity deal designed to expand its card business, the Wall Street Journal reported.
The Journal said the credit card effort will be directed toward subprime borrowers and that it is expected the company will be competing with big card players like Capital One.
Last year, LendUp started a limited release of a credit card aimed at similar borrowers, called the L Card. The new effort will expand that brand, the Journal said.
Unlike rivals LendingClub and other established startups that aim to give loans to middle-to-upper-class households, LendUp has targeted less-creditworthy consumers who have more difficulty accessing bank loans, the Journal explained.