Plastc Shuts Down All-in-One Card Before Launch
Plastc, a Coin competitor, announced it will be shutting down its all-in-one credit card before it is ever launched. The company has been working on its product for over three years, but will not be able to fill orders due to a lack of funding.
The company refers to their work as “the most technically ambitious smart card on the planet.” That ambition came with a high price tag. Plastc planned on getting $3.5 million in February, but the investor eventually withdrew the offer. They began work with a second investor who offered $6.75 million, but that fell through as well. Now the company is looking into Chapter 7 bankruptcy to cover its losses.
Plastic raised over $9 million from backers, and that money was supposed to fund the launch of the product. They received 80,000 preorders with the first 1,000 coming in just 47 minutes. None of those orders will be filled now.
Last year, the company made an announcement on Reddit saying their April 2016 ship date would be pushed to August or September. Ryan Marquis, CEO of Plastc, Inc., said, “As our competitors have learned from shipping their product before it was ready, ‘sort-of-working, some of the time,’ is not okay. I refuse to ship you a product that does not consistently work.”
That was in reference to Coin, which delayed its initial launch by several months and still put out a product with heavy flaws. Coin has since put out a version 2.0, which is EMV compatible and much more effective.