Zero closes $20m Series A to serve 200,000-strong waitlist
Credit card and checking account combo Zero Financial has raised $20 million and will now scale up to serve its waiting list of 200,000 people, reports Jane Connolly.
Led by New Enterprise Associates (NEA), the Series A financing round brings the San Francisco fintech’s total equity and debt funding to $35 million.
Billed as a solution that allows customers to “bank like debit and earn like credit”, Zero offers a rewards credit card called Zerocard and a checking account.
Transactions from both Zerocard and Zero Checking are displayed together in one app, with a system that claims to prevent unplanned or unwanted overspend.
Issued in partnership with Salt Lake City-based WebBank, Zerocard is a World Mastercard that is issued at four levels – ranging from Quartz, which earns 1% cash back on purchases, to the 3% cash back Magnesium card. The two top-tier cards are presented in solid metal.
Customers qualify for upgrades by referring friends to Zero and they must pay off their full Zerocard balance by the due date from their Zero Checking account to receive the cash back.
Zero Checking deposits are held at Memphis-based Evolve Bank and Trust and are insured up to FDIC limits.
Zero founder and CEO Bryce Galen says: “Apple recently made headlines by saying they’re launching the first credit card that encourages you to pay less interest. I think we’ve done one better and launched the first credit card that encourages you to pay no interest.”
The fintech, which counts former employees of firms such as Apple, Capital One and Google among its management team, also offers a 24/7 customer support centre.