US-based fintech startup Karat has unveiled its first business credit card exclusively for social media influencers, after closing a $4.6m funding round recently.

Dubbed Karat Black Card, the new card relies on social-media engagement statistics – like follower count – of online content creators to determine their eligibility.

The custom payment card caters to the spending needs of influencers on YouTube, Instagram and TikTok.

Upon sign up, the card offers 2-5% cashback on products like camera gear, streaming equipment, and food delivery to income-earning creators.

Since it is a charge card, the cardholders are required to pay their credit card balances in full at the end of each month, instead of a minimum credit due amount.

However, in case the cardholders fail to pay their entire bill at month end, the company will waive off fees and interest.

Additionally, the card comes with one time welcome offer of $250 for future purchases and there is no foreign transaction fees associated with the card.

The company will make money from the processing fees it will collect from merchants at point-of-sale (POS) terminals.

Karat has already beta tested the card. Eligible people can begin applying for the fee-free card via a direct message to the company on Instagram.

Karat cofounder Will Kim said: “For typical consumers, using social ranking or grading generally is not a good idea and doesn’t work.

“However, what we’re focused on is a segment of businesses that are driven by creative metrics.

“You’re a creator. You make content. You have a lot of metrics available online about how your business operates, and we can underwrite that.”

Other fintech startups like Petal Card, Accion, and Kabbage have also taken a similar approach – to provide credit without depending on the credit scores of the applicant.