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Step announces official launch & partners with Visa to enhance financial skills

By Pavithra R

October 01, 2020

  • Step
  • USA

CJ MacDonald, Founder and CEO at Step

Step, improving the financial future of the next generation has announced its official launch, offering a free FDIC insured bank account & Visa card. 

Through its app, Step is offering an all-in-one banking solution with a new type of personalized card with no interest or fees and helps teens build positive credit. In celebration of the launch, the company will also be giving away $100,000. 

Step began piloting the app with friends and family and has experienced an overwhelming interest for the new type of no-fee, all-in-one banking solution. The company has also partnered with dancer and social media megastar Charli D’Amelio to share her favourite Step features and how she uses the app to manage money, her way. 

Recently, Step raised $22.5M in Series A funding led by Stripe with participation from Will Smith’s Dreamers fund and Nas, as well as existing investors Collaborative Fund, Crosslink Capital, Kombo Ventures and Sesame Ventures. The FinTech’s financial products are powered by its bank partner Evolve Bank & Trust, Member FDIC and insured up to $250,000.

“Today’s teens grew up in the online world with technology serving as an integral part of their daily lives. They expect to manage their money in the same way as their social media, but banks have failed to keep up––largely overlooking this generation and their unique needs. Step was built to fill this gap, providing modern financial tools that enable teens to easily manage their money while helping to improve their financial literacy at an earlier age,” said CJ MacDonald, Founder and CEO at Step.

Step, built for Gen Z provides transparent, digitally native financial products to teens with Junior Achievement (JA) reporting that 34% are currently unbanked. The Step Card combines the secured spending limits of a debit card with the protections of a credit card, all rolled into one account. Step allows users to:

  • Remove monthly, overdraft, ATM and late fees with no minimum balance requirement.
  • Dynamically tracks card balances; reminds users of their remaining balance each time they make transaction. Parents also have visibility into their teen’s spending and can help guide their financial future.
  • With its unique P2P payments platform, the Step App enables parents and teens to send and receive money within seconds.
  • Helps early kick-starting of teens’ financial futures by building up their credit history to help lower the cost of student loans, auto insurance, and more.
  • Teens can also earn rewards through Step’s referral program by sharing a unique link with friends and family, earning $1 for each signup. Users can join the Step Squad and double their earnings.

“As I started making my own money, it was important for me to find a banking app that felt like it was designed for me. Step has been a game-changer –– I always know how much money I have to spend and it even makes it simple for me to pay back friends for coffee. Unfortunately, we don’t always learn much about how to manage or save money as teens, so I’m excited to partner with Step to help teach people at my age about smart money habits,” said Charli D’Amelio.

Step offers an easy solution by enabling teens and their parents to add money to their accounts by linking their Step Card to bank accounts, other apps, and debit cards. The Step App also enables quick and secure, contactless payments.

“Visa is committed to connecting the world and helping people thrive through the most innovative and reliable payment network. We’re thrilled to partner with Step to further this mission by offering a bespoke Visa card designed for today’s youth so they can spend and manage their money with ease while learning important financial skills,” said Terry Angelos, Senior Vice President and Global Head of FinTech at Visa. 

Recently, Visa partnered with ZEEPAY for driving financial inclusion across Ghana & Africa.

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