Smart card Plastc goes under despite $9 million in preorders
- Author: Zachary Reyes Apr 22, 2017,
Apr 22, 2017, 8:54
Unlike Coin, however, it looks like Plastc will shut down without sending out one example of its smart card, despite taking over $9 million from buyers in pre-orders at $155 each.
With that, all backers' money is lost, and no Plastc cards will ship.
There is little trace left of Plastc online, except for furious customers commenting on Twitter, Facebook, and Reddit. What's not clear is how more than $9 million wasn't sufficient to get backers their orders. This was posted on the company's website where they gave a brief explanation on how they got to where they are today.
But the startup struggled to fill its pre-orders. And Plastc was forced to remove features it had promised when they proved too complicated to pull off in a timely manner, Marquis said during the "Behind the Brand" interview.
Spurred by Coin's crowdfunding success, a whole host of others launched similar campaigns, including Stratos, Swyp and Plastc to name just a few - none of which are viable options to date. Backers will likely have questions and want their money back, but with no one to turn to from Plastc, they'll likely be out the cash.
The company claims it was expecting to close a $3.5 million Series A funding round in late February and that it had functioning Plastc Cards to show its investors. It found another investor willing to sink $6.75 million into the venture, but it backed out at the last minute.
The company said it won't be able to ship any pre-orders and made no mention of refunds. However, with the advent of smartphone and smartwatch-based payment systems like Android Pay, the idea of "smart" cards fell into disfavor. It's really no surprise that a company dependent on credit cards couldn't find a reason to make people care about its product.