When Vincent Sarafa was growing up, he kept three things in a shoe box: Cash, jewelry his grandparents gave him and Pokémon cards.
His father warned him someone could one day steal his shoebox, so they went to the bank to deposit the cash and open a checking account.
In addition to the cash, the 13-year-old Sarafa tried to hand the bank teller his first-edition Charizard.
“Why would you put these in the vault? They have no value,” the teller told him.
A few decades later, Sarafa, having worked in finance and sports-related private equity at J.P. Morgan and Bruin Capital, is setting out to prove that bank teller wrong.
Sarafa is launching Collectors Card, the first credit card built with rewards specifically for collectors.
The credit card isn’t limited to collectible-related charges. The company’s pitch roughly amounts to: Buy groceries, earn points toward a Charizard. Essentially, the goal is to give collectors an everyday credit card that aids in their collectible spending through targeted rewards.
Among the features planned for the card are cash back, grading discounts, vaulting perks and exclusive drops. Cardholders will also have the option to place their collectibles in a vault and receive elevated rewards and a lower APR.
“Not only do I want to build for my childhood self, I want to build for the next generation of collectors who truly know and believe that there is a store of value inside of collectibles that is just starting to formulate infrastructure around,” Sarafa told cllct.
With plans to launch the cards later this year — the wait list is now online — card users will receive 2% cash-back, in addition to certain industry-specific redemption offers with various partners, including CGC and eBay.
The first 5,000 founding members will receive a card and a small equity stake in the business.
“There's a lot of people in the hobby … everybody's punching each other in the face, the guts and sometimes the nuts, to be totally honest with you,” Sarafa said. “And nobody is collaborating in a way that truly supports the collector. Everybody's competitive.”
Sarafa says Collectors Card is out to buck that trend and serve collectors through inventive partnerships.
Chris Callahan, who met Sarafa when he was an advisor for Alt, is leading marketing for the team.
“The thing I think is cool about this is it’s a product we can really build for the 99%, not the 1%,” Callahan said. “It’s a way for people to earn rewards to buy their grails, which might be a $50 card or a $100 card.”
There are also plans to offer lower interest rates for collectors by collateralizing against their collection held in a vault.
“I don’t think we’re going to solve the debt crisis, to be totally honest, but I actually think we’re going to be able to allow collectors to finally feel financial stability for the first time ever,” Sarafa said. “Not only have them feel seen as a collector, but allowing them to go from a very high interest rate down to something more palatable.”
As part of the collector DNA implicit in the company, Collectors Card founding members will see a serial number out of 5,000 on their credit cards, with some early adopters already calling dibs on meaningful numbers to them.
Will Stern is a reporter and editor for cllct, the premier company for collectible content.