Enabling Technologies

Wallaby works like Coin but also recommends best card to use

Recently, we wrote about the Omne card which changes magnetic stripe via smartphone and Coin Card that enables users to store all their cards on a single card and manage it with the smartphone through BLE. Wallaby Financial offers a similar platform that combines all of the user’s existing credit cards onto one card. It then decides which of his credit card accounts to route his transactions to based on where he can get cash back bonuses or the most frequent flyer miles.

Wallaby Financial was co founded by Matthew Goldman (CEO) and Todd Zino (CTO) in January 2012. The company acquired Seed Funding of $1.1 Mn in August the same year via investors including Founder’s Fund, WI Harper Group, SLP Ventures, Lion Wells Capital, MuckerLab, Quotidian Ventures and Karlin Ventures. The company is based in California and employs around 10 persons with Kenny Chen as Lead UX Designer.

Wallaby says that its credit card optimization platform provides a flexible way to differentiate financial products. Their platform can help users increase share of wallet and add differential value to their customer experience.

This is how the Wallaby Card works:

In a very humble opinion given by Matthew Goldman, Founder/CEO, Wallaby Financial "Our card is a "dumb" piece of plastic connected to a smart cloud-based system. From my understanding, Coin is a very intelligent piece of hardware that lets you choose from the cards in your wallet at the point of sale."

  • Essentially, the user gives Wallaby information about his credit cards, and the company then sends him a new piece of plastic (Wallaby Card) that the user carries instead of all his other credit cards.

  • When the user swipes the Wallaby card to pay for movie tickets/clothes/food/groceries etc, the service uses algorithms to decide which of the user’s underlying cards to use to complete the purchase.

  • Several factors are considered while doing this, including which cards the user has in his portfolio, his personal preferences, and which card will earn him the most rewards for that transaction.

  • After a six-month free period, the service costs $50 a year. 

“Wallaby makes it easy for people to earn the most rewards by channeling spending toward the best card for each transaction, making sure each consumer gets the most from their credit cards’ annual fees” said Mattew Goldman, CEO of Wallaby.

Some other companies that operate in this space include Coin and Omne. These cards however allow users to choose their own card for payments and do not select the best one depending on rewards. The major difference between the Coin card and Wallaby Card is that a physical dongle is required to accept and register a credit card onto Coin’s platform. In the case of Wallaby card however, the user has to register his credit cards on Wallaby’s website upon which the company will send a plastic card (Wallaby card) which can be used to swipe for all transactions.

LTP View: The Wallaby card is an innovative idea that could easily see large scale adoption from consumers. According to the company, 90% of U.S consumers carry rewards cards and most of them find the programs confusing. Wallaby is trying to tap the potential in this space by enabling users to rack up reward points in the most efficient manner with almost no effort on their part. Consumer’s wariness to upload all their credit cards along with the details on a single website however might be an issue. They should go the Coin or Omne way to collect card details and store them using a dongle.

Chiraag Patel

Chiraag Patel is a Senior Reporting Analyst and the Editor of Bitcoin and Virtual Currency channels at Lets Talk Payments. He is an engineer with deep interest in MMORPG, Virtual Banking, Game Currency and Virtual Cash. Chiraag enjoys Reading& Blogging with focus on New Innovation, Technology & Startups in the Payments Space.

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