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New York Post
20-05-2025
- Business
- New York Post
Oaktree Capital investing $250M in parallel-economy credit card Coign
Investment giant Oaktree Capital has struck a $250 million deal with Coign, a conservative-focused credit card company, marking one of the largest institutional investments in the so-called parallel economy, NYNext has learned. The parallel economy has gained traction in recent years as conservatives seek products aligned with their values. While companies like Coign have built a foothold, they've largely lacked recognition from major financial institutions. Oaktree Capital, founded by billionaire Howard Marks, signals that this movement is increasingly attracting even typically apolitical investors. In a statement to investors reviewed by NYNext, Coign announced, 'The $250 million partnership with Oaktree provides a debt facility to scale our super-prime credit card portfolio and launch non-prime cards.' Advertisement Howard Marks, pictured with wife Nancy, started Oaktree Capital — which manages more than $200 billion worth of assets. Clint Spaulding / PatrickMcMulla Chris Gray, Managing Director at Oaktree Capital, added that Coign is 'well positioned to be a significant growth story in fintech.' I called up Coign's founder and CEO Rob Collins to ask about the deal and he said Oaktree's involvement underscores just how significant the American market of 120 million conservatives is. Advertisement According to Coign's materials, conservatives are both the largest and wealthiest affinity groups in the US and thus far they've only been given the option of using credit cards that donate overwhelmingly to liberal causes (the top credit card companies have given more than $2 billion to Democratic causes, according to a report in the Washington Times). 'More and more people are recognizing how well conservative movies and media are doing … that extends to our industry,' Collins said. Conservative products particularly have a strong word-of-mouth element and engender serious loyalty from customers. That is all to Coign's benefit — the card already has tens of thousands of members in every state and a waitlist over 110,000 more as the company builds up capacity. Coign, which uses Visa's payment infrastructure, reportedly donates a small amount to conservative causes on every transaction. Advertisement And perhaps most interestingly, the churn for this credit card is just 2.5% — far lower than the usual 10% companies experience, according to a 2025 survey. Coign, which uses Visa's payment infrastructure, reportedly donates a small amount to conservative causes on every transaction. 'Every purchase benefits conservative causes chosen by cardholders,' according to a company statement. 'Spending Right with Coign funds organizations like Rescue 22, which rescues dogs and trains them as service animals for veterans. With Coign, conservatives are taking back our economy and our country — one dollar at a time.' This story is part of NYNext, an indispensable insider insight into the innovations, moonshots and political chess moves that matter most to NYC's power players (and those who aspire to be). Advertisement Collins also said this is recognition of a broader trend: The growing bifurcation of consumer markets. 'All Americans are looking for products that reflect their values,' he adds. Whether it is liberals ridding themselves of their Teslas or conservatives very loudly boycotting beer from Bud Light, the politicization of products is here to stay. Send NYNext a tip: nynextlydia@
Forbes
24-04-2025
- Business
- Forbes
Why Gen Z Is Breaking Up With Credit Cards
Woman at cafe making mobile payment getty According to new research from Cash App Afterpay, more than half of Gen Z say credit cards feel outdated, anxiety-inducing, and incompatible with how they want to manage their money. Unlike previous generations who saw credit cards as a rite of passage or a symbol of financial freedom, Gen Z is redefining what financial empowerment looks like—and credit cards don't make the cut. 'Credit cards give Gen Z the 'ick'—not just because of high interest rates and confusing terms, but because they feel outdated and anxiety-inducing,' said Lindsay Bryan-Podvin, Cash App Afterpay's Financial Therapist. 'Credit cards clash with how Gen Z wants to manage money. They want clarity, structure, and control in real-time, which is why they're embracing alternative tools like debit cards and BNPL that offer greater transparency, flexibility, and speed for responsible spending and managing their cash flow.' Credit cards also feel cumbersome. 'For a generation used to getting things with the tap of a button, having to go through the tediousness of applying for a credit card and then waiting for it to arrive isn't as integrated and user-friendly as BNPL,' Bryan-Podvin added. Charlotte Principato, a financial services analyst at Morning Consult, echoed these sentiments. 'Gen Zers are entering adulthood without being bombarded by credit card offers the way millennials were, with a heightened understanding of the dangers of credit card debt after seeing its impact on older generations,' she said in an interview with Forget bubble baths and yoga—Gen Z is bringing financial wellness into the self-care conversation. They're prioritizing tools that help them stay mentally and financially balanced, with ease and autonomy at the center. 'Gen Z is redefining self-care, and extending those values to include financial wellness,' said Bryan-Podvin. 'They're prioritizing payment methods that support ease, autonomy, and mental well-being. Debit cards have become their go-to, with 68% preferring them (and BNPL options) over credit. There's greater peace of mind with clarity, and no fine print or surprise interest. That's also why 90% of Afterpay customers link their debit cards for installment payments—it helps them manage cash flow without added stress.' Gen Z came of age during economic chaos—witnessing the aftermath of the Great Recession, watching parents and older millennials wrestle with credit card debt, and now navigating inflation and record-high living costs. 'Gen Z is entering adulthood during a time of economic uncertainty, inflation, and rising living costs,' said Bryan-Podvin. 'They're more cautious and financially aware from seeing past generations struggle with debt and the Great Recession, and are far more skeptical of tools that don't serve them. Our survey found that 63% of Gen Z have already walked away from credit cards entirely. This isn't just a shift but a generational reset, making it clear that credit doesn't align with their reality or their values.' Here's the bottom line: Gen Z doesn't see credit—they see debt. 'For Gen Z, using a credit card can feel like spending money they don't actually have. In fact, 70% of adults say credit cards give them that exact feeling,' Bryan-Podvin explained. 'Credit cards are built to make spending feel easy; however, too easy can be dangerous. One of my financial therapy clients once reframed their credit card as a 'debt card,' and suddenly became way more mindful of their habits. That simple mindset shift can be a game changer, and it's one Gen Z is making in real time.' As this generation continues to influence market trends, financial institutions may need to adapt to meet their evolving preferences—because when it comes to credit cards, Gen Z isn't just uninterested. They're actively opting out.
