US-based teen-focused mobile financial services provider Step secured $22.5m on Thursday in a series A round led by mobile payment technology provider Stripe.
Sesame Ventures, the investment arm of children’s entertainment production company Sesame Workshop, and media holding company WndrCo also contributed to the round alongside Crosslink Capital, Collaborative Fund, Dreamers Fund and assorted private investors.
Step is developing a mobile app that enables teenagers and young adults to set up a free digital bank account.
The app is connected to a physical bank card and allows the user to track spending habits, set limits on spending, send and receive money, withdraw cash and pay for goods. Step is currently in beta testing with 500,000 users on its waiting list.
The company has partnered payment services provider MasterCard to create a co-branded debit card, with Evolve Bank and Trust to provide ATM access to Step card holders.
Jordan Angelos, head of corporate development at Stripe, has joined the board of directors. He said: “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.”
In January 2019, the company received $3.8m in a seed round backed by Sesame Ventures, Crosslink Capital and Collaborative Fund.