Step, a US-based mobile banking start-up for families and teenagers, has raised $22.5m in Series A funding round led by payment processing company Stripe.
It also saw the participation of Dreamers fund, Nas, Wndrco, Ronnie Lott, Matt Rutler, Kevin Gould, Noah and Jonah Goodhart.
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The company’s existing investors Crosslink Capital, Collaborative Fund and Sesame Ventures also joined the round.
Step fundraising: Background
Step has collaborated with Mastercard, Stripe and Evolve to deliver an offering which includes an app and a card co-branded with Mastercard. The card allows the customers to shop, transact funds as well as utilise digital wallet platforms.
The start-up provides FDIC-insured deposits service and access to a network of 35,000 ATMs nationwide.
The app includes real-time budgeting tools, transaction and balance tracking to provide a complete overview of financial health.
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By GlobalDataAdditionally, Step allows the parents to monitor their ward’s expenses and enables them to set limits and guidelines to control spending.
Step intends to use the latest investment to support its growth strategy and increase workforce.
Currently, the service is undergoing beta testing, with full commercial availability is expected later this year.
The latest investment comes at a time when the start-up is said to have built around 500,000-strong waitlist.
Step co-founder and CEO CJ MacDonald said: “Teens and parents are ready for a seamless mobile banking experience, one meticulously designed for their needs.
“We’ve partnered with the best in the business to create the right solutions for the next generation.
“As we move into a cashless era where digital content and transactions fuel our daily lives, the need for innovation in financial services increases. We want Gen Z to be more equipped and educated when it comes to money.”
