Teen Banking App Step Reaches Out To The Stars To Elevate $ 50 Million
© Reuters. FILE PHOTO: Premiere for the film “Bad Boys for Life” at the Zoo Palast cinema in Berlin
From Anna Irrera
LONDON (Reuters) – Teen Banking App Step has raised $ 50 million from investors led by Coatue Management, along with celebrities including singer Justin Timberlake, influencer Charli D’Amelio and former quarterback Eli Manning.
Step, which offers teenagers a bank account tied to a secured expense card and peer-to-peer payments, also said it has secured funding from existing backers like Stripe, Will Smith’s Dreamers VC, CrossLink Capital, and Collaborative Fund.
With Step in San Francisco, parents can view real-time balances and activity, add funds to their teenagers’ accounts, and manage and freeze cards. There are no fees, but money is made exchanging cards.
Other stars involved in the fundraiser included The Chainsmokers, Kelvin Beachum, Larry Fitzgerald and Andre Iguodala, Step said in a statement Wednesday.
The startup, which has attracted more than 500,000 users since launch two months ago, will use the funds to grow the team and invest in its technology, its chief executive officer CJ MacDonald told Reuters in a video call.
“We make sure we can develop scalable solutions and handle growth,” said MacDonald.
Step is one of several new banking apps for children and teenagers in the United States as companies seek to capitalize on a global surge in digital payments and e-commerce. It competes with products from companies like Greenlight and JPMorgan Chase & Co. (NYSE 🙂
Such companies want to make it easier for parents and their children to trade in an increasingly cashless economy while at the same time providing more modern tools for financial education.
“As a person who has not always had financial stability and made many mistakes in this area as a young man, I know the importance of financial literacy and access to business platforms that can work for everyone,” said Smith, Co-Founder of Dreamers VC said in a statement.
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