Step receives $22.5m Series A funding
Step, the challenger for families and teens in the US, has closed $22.5 million of Series A funding to enhance its banking solution.
The funding round was led by Stripe, with participation from Will Smith’s Dreamers fund, Nas, Wndrco, Ronnie Lott, Matt Rutler, Kevin Gould, Noah and Jonah Goodhart as well as existing investors Crosslink Capital, Collaborative Fund and Sesame Ventures.
The investment comes as Step’s waitlist demand exceeds 500,000 people.
Step has partnered with Mastercard, Stripe and Evolve to launch the solution, aiming to be a teen’s first spending card and first bank account. The Step card is co-branded with Mastercard, providing zero liability protection against unauthorised purchases or charges.
Step’s accounts are securely held through the Federal Deposit Insurance Corporation (FDIC), and insured through their sponsor bank, Evolve Bank and Trust.
Evolve Bank and Trust, established in 1925, also enables easy ATM access for Step card holders at thousands of locations with no fees.
“Teens and parents are ready for a seamless mobile banking experience, one meticulously designed for their needs,” says Step co-founder and CEO, CJ MacDonald. “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.”
“As a result, we also need to ensure that they become familiar with the unique aspects of digital payments including providing education about the various finance and payment products available,” says Sherri Haymond, EVP digital partnerships, North America for Mastercard.
The Step offering allows parents oversight into their teen’s spending, providing the opportunity for them to set limits and guidelines as well as have a view into card use.
With this new funding, Step aims to accelerate its roadmap, add several new hires and respond to the strong demand for its services.