Fintech startup Mesa has abruptly ceased operations for its innovative Homeowners Card, a credit card designed to reward users specifically for paying their mortgages and other home-related expenses. The shutdown comes just over a year after the company's launch, leaving cardholders with deactivated accounts and limited options for point redemption.
According to a message posted on Mesa's website, “all Mesa Homeowners Card accounts are closed” as of December 12. The statement further clarifies that “All credit cards have been deactivated and you are no longer able to make any new purchases or earn Mesa Points.”
An FAQ section on Mesa's site described the closure as “a business decision to close the Mesa Homeowners Card Program entirely.” TechCrunch has reportedly reached out to Mesa for additional comments regarding its future plans, but no further details have been publicly released.
Mesa launched in November 2022 with a substantial $9.2 million in funding, comprising $7.2 million in equity and $2 million in debt. The startup initially offered two main products: mortgage loans with a 1% cash-back incentive and the now-defunct credit card, which provided rewards such as cash back, travel benefits, and options to offset mortgage payments.
CEO Kelley Halpin previously told TechCrunch that Mesa aimed to “re-contextualize” the popular rewards model of travel and dining cards for homeowners and parents. While many credit cards offer points for general spending, Mesa's program was specifically structured to incentivize expenditures directly related to homeownership.
Halpin elaborated, stating, “So it’s not rewarding you on travel and dining spend; it’s rewarding you on gas, groceries, your HOA, utilities, home goods as well as your mortgage payment.” This unique approach set Mesa apart in the competitive fintech landscape.
The shutdown also brings attention to other players in the market. Bilt, a company known for its rewards card that allows users to earn points on rent payments, has announced plans to expand its offerings to include points for mortgage payments with a revamped card expected next year.
Reports from travel deals websites like One Mile at a Time and Upgraded Points indicate that Mesa cardmembers had been experiencing declined transactions for about a week prior to the official announcement. Initially, the company attributed these issues to a temporary outage.
Currently, the only remaining option for Mesa cardholders to redeem their accumulated points is through a statement credit, offered at a significantly reduced rate of 0.6%.
