Step, a San Mateo, California-based next-gen financial services company, as per recent reports, has just closed a Series A fundraising round, raising $22.5 million in investment funding, to enhance its core banking solution.
Step’s recent Series A was led by Stripe, a San Francisco, California-based tools and solutions provider for internet businesses, and was participated by Will Smith’s Dreamers fund, Nas, Wndrco, Ronnie Lott, Matt Rutler, Kevin Gould, Noah and Jonah Goodhart, along with Step’s existing investors Crosslink Capital, Collaborative Fund, and Sesame Ventures.
Step’s recent Series A investment follows the San Mateo-based fintech’s waitlist demand, that exceeds 500,000 people.
In its quest, Step has made some eminent partners such as Mastercard, Stripe, and Evolve to launch the solution. Step aims to become a teen’s “first” spending card and “first” bank account. Furthermore, in its teen’s-first portfolio, the company has co-branded its Step card with Mastercard, to deliver a zero liability protection against unauthorized purchases or charges.
Step’s account offerings are securely held through the Federal Deposit Insurance Corporation (FDIC), moreover, the accounts are insured through Step’s sponsorer – Evolve Bank & Trust.
“Teens and parents are ready for a seamless mobile banking experience, one meticulously designed for their needs,” states CJ MacDonald, co-founder & CEO, Step. “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.”
“As a result, we also need to ensure that they become familiar with the unique aspects of digital payments including providing education about the various finance and payment products available,” states Sherri Haymond, EVP – Digital Partnerships, North America, Mastercard.
Step plans on utilizing this recent funding to accelerate its roadmap and hire new professionals to effectively tackle its service demand workloads.