Fasten Shifts Gears to Drive Auto Loyalty Into the Fast Lane

A car loan can turn out to be a green light, red light moment for millions of Americans.

While consumers in the United States spend trillions of dollars annually on transportation, traditional credit cards rarely offer meaningful rewards for auto-related expenses.

That disconnect represents an opportunity, Fasten founder and CEO Jacob Zachs told PYMNTS CEO Karen Webster.

“Auto spend is the second-largest form of non-discretionary, non-rewarded spend in America,” he said. “You’re spending the money anyway. You might as well get the points. I was getting rewarded for my Starbucks and my Netflix and now my rent. Why not my auto loan?”

Launched just days before he sat down with Webster, Zachs said Fasten’s ultimate end goal is to build a full-fledged ecosystem around car ownership, much like FinTech Bilt has done for renters.

“We’re not trying to increase this value proposition just for auto loans,” Zachs said. “We’re trying to own the entire category of auto spend.”

Webster called the business model “a clever idea, building a rewards network around drivers and all the various expenses that drivers incur when they’re driving their car and buying their car.”

While airline miles and credit card points have transformed travel and finance, car ownership and its ecosystem remain largely untouched by loyalty innovation.

What Loyalty Looks Like for Drivers

Credit cards may offer broad cash back and points schemes, but those rewards rarely reflect the unique needs of drivers. While gas station loyalty programs exist — think Shell’s Fuel Rewards or BPme — they are narrowly focused on fuel savings. Meanwhile, car manufacturers and dealerships offer limited incentives that rarely extend beyond the purchase transaction. There’s no integrated, cross-category loyalty platform designed specifically for people who drive often and spend heavily on their cars.

Fasten’s tagline, “The card for drivers,” illustrates its core mission of helping Americans earn rewards on car-related spending, which means all the errands and repairs related to car ownership.

“We are giving bonus points for auto-related spend — parking, gas, insurance, tolls, maintenance, car washes and things like that,” Zachs said.

The minute someone buys a car, they enter a relatively long-term relationship with a whole ecosystem of vendors, Webster pointed out. Why shouldn’t that come with the same loyalty perks you’d expect from flying or shopping?

“If you put the things that you’re paying for already on the card, that can bring the cost of a car down by three, four, five thousand dollars,” Zachs said.

Redemption flexibility is one of the critical components of Fasten’s rewards platform. While the company supports traditional redemption options like travel and hotel bookings, Fasten is integrating with dealerships.

“You can go to any Bud Clary [dealership] and redeem for service, maintenance or down payments,” Zachs said, adding that Bud Clary operates 14 dealerships across Washington state and is one of Fasten’s early partners. “We want to be the card where you can go on your dream vacation or buy your dream car.”

Customer acquisition costs (CAC) can be crushing for startups in the automotive space, and Zachs said Fasten is looking to create distribution efficiencies through dealer partnerships.

“We are partnering with dealers,” he said. “When you’re buying a car or getting your car serviced, that’s a time when people are really thinking about their finances. Car and auto affordability is top of mind across the country.”

Webster pointed out the importance of this timing.

“At the point of purchase, when you’re confronted with what you’re going to be paying every month, knowing that there’s this option would be a moment of inspiration,” she said.

The Road Ahead for the Driving Economy

Unlike many auto financing tools that are tightly coupled with specific lenders or original equipment manufacturers, Fasten is brand- and lender-agnostic. That includes new and used cars alike.

“Whether you started your auto loan today, or six months ago, or two years ago, you can sign up for the Fasten card,” Zachs said.

It’s a strategic decision that aligns with the shifting nature of car ownership. The average car on U.S. roads is now over 11 years old, and most Americans finance their vehicles for six years or longer.

“Even if you’re not buying a car now, you’re going to at some point,” Zachs said. “You’re not on your last car.”

One constraint Zachs is not yet trying to overcome is credit accessibility. For now, Fasten is designed for consumers with strong credit profiles.

“We’re a prime plus card,” he said. “Minimum credit score is 680. We’re not doing fancy underwriting. There are 100 million prime, prime-plus drivers in America… If you’re getting approved for your auto loan, you’re probably going to be approved for the credit card as well.”

With rising car prices, longer loan terms and a shifting economic climate, Zachs and his team are betting that car ownership will remain central to American life — and that drivers will want to be rewarded for it.