Step, the new modern-day financial services company built for teens and families, today announced its official launch, offering a free FDIC insured bank account and Visa card. Through its app, Step offers an all-in-one banking solution with a new type of personalized card that has no interest or fees and helps teens build positive credit. In celebration of the launch, furthering Step’s mission to improve the financial future of the next generation, the company will also be giving away $100,000.
This summer Step began piloting the app with friends and family, experiencing overwhelming interest for this new type of no fee, all-in-one banking solution. After rave reviews from more than 100,000 users during the pilot phase, today Step is available to the public for the very first time.
The company has also partnered with dancer and social media megastar Charli D’Amelio to share her favorite Step features and how she uses the app to manage money, her way. Step recently raised $22.5 million in Series A funding led by Stripe with participation from Will Smith’s Dreamers fund and Nas, as well as existing investors Crosslink Capital, Collaborative Fund, Kombo Ventures and Sesame Ventures. Step’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,” said CJ MacDonald, Founder and CEO at Step. “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.”
Built for Gen Z, Step provides transparent, digitally native financial products to millions of teens with Junior Achievement (JA) reporting that 34% are currently unbanked. Step is designed to support teens from the beginning of their financial journey. 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:
- Ditch the fees. Step was built to always put the customer first –– removing monthly, overdraft, ATM and late fees with no minimum balance required.
- Learn smart money habits. Step dynamically tracks card balances, reminding users of their remaining balance each time they make a transaction. Parents also have visibility into their teen’s spending to help guide their financial future.
- Build positive credit. Step helps kick-start teens’ financial futures early by building up their credit history to help lower the cost of auto insurance, student loans and more.
- Send and receive money instantly. With a unique P2P payments platform, the Step App enables parents and teens to send and receive money within seconds for an allowance, trip to the mall and more.
- Start earning today. Teens can earn unlimited rewards through Step’s referral program by sharing a unique link with friends and family –– earning $1 for each signup. Users can double their earnings by joining the Step Squad.
“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,” said Charli D’Amelio. “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.”