Fintech startups Arcus and Happy Money have joined forces to launch a direct credit card payoff product.

The new product will operate within Happy Money’s Payoff Loan service.

Through this new offering, the companies aim to address the growing amount of credit card debt in the US, which exceeded $1tn last year.

The credit card payoff product will enable the users to pay off their debt with a single loan.

Arcus CEO and co-founder Edrizio De La Cruz said: “We’re on a mission to create stronger financial health for people around the world, and by partnering with Happy Money to launch an innovative programmatic credit card payoff product, we’ve built a modern way for people to pay off their debt in a more seamless way.”

Happy Money’s Payoff Loan service allows the user to reduce their several high-interest payments into a single low-rate monthly payment.

The integration of this service with Arcus xPay API will enable direct disbursement of loan proceeds to the user’s credit facilities.

Besides enabling the users to pay off multiple credit cards loans with a single payoff, the service reduces associated risks with the loan.

Happy Money CEO and founder Scott Saunders said: “Credit card interest, next to bank fees, is one of the saddest spends consumers make. We believe in helping people live happier lives and for many that starts with paying off credit cards.

“Our partnership with Arcus makes it easier for our Members to pay off their credit cards, and we love that.”