Payments platform Stripe announced on Thursday it is leading a $22.5 million Series A funding round for Step, a U.S. fintech that provides teens and families with tools for modern-day banking and promotes financial literacy. According to Stripe, additional investors participating in Step’s current funding round include Crosslink Capital, Collaborative Fund, and Sesame Ventures.
Founded in 2018, Step describes itself as a next-generation financial services company that is looking to build the “best banking experience” in order to help teens and young adults achieve financial independence and knowledge at an earlier age.
“Step gives you a free bank account with zero fees. Track your balance, earn interest, deposit checks and manage your savings from the Step mobile app. You can also send and receive money instantly on your phone, shop with a personalized spending card and earn rewards just for using Step. Sign up for early access and start earning money!”
Speaking about the investment round, Jordan Angelos, Head of Corporate Development at Stripe, who is joining Step’s board, stated:
“Stripe is committed to searching for new ways to remove barriers to commerce and broaden economic access to more people. Step will help teenagers responsibly participate in a financial system that’s moving online, and teach money management skills through direct experience. We’re thrilled to support their efforts.”
Step Co-founder and CEO, CJ MacDonald, added:
“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.”