Youth-Focused Financial Platform Step Raises $300M

Step, a financial platform targeting teens and young adults, has raised $300 million in debt funding, bringing the company’s total capital raised to $500 million.

“With this new funding round, Step will accelerate product infrastructure investments and continue to bring innovative financial products to the next generation,” the company said in a press release on Tuesday (Oct. 11).

Step raised $100 million in a Series C funding round last year. The Palo Alto, California-based company has attracted a number of high-profile investors, including actors Will Smith and Jared Leto and the NBA’s Steph Curry.

Read more: Forward-thinking financial services target the next generation

In addition to the new funding, Step has also started offering cryptocurrency investments and says in the release that it is now the first platform to allow teenagers, with parental consent, to buy and sell bitcoin. (Stocks and other cryptocurrencies will be added to the platform soon.)

The company also launched Money 101, a six-lesson financial education program to teach students and parents about modern banking that is now taught in more than 100 high schools across the country, according to the release.

“In less than two years, we have been able to help more than 3 million clients establish a strong financial foundation and start thinking about their long-term goals,” Step founder and CEO CJ MacDonald said in the statement. . “We’re thrilled to be able to offer teens and young adults the ability to build credit, budget, spend, save, earn and now invest in their financial future right from the Step app.”

In April, Step chose integrated crypto infrastructure company Zero Hash to operate its crypto product. Zero Hash will use its digital asset infrastructure to provide customers with access to a library of over 50 cryptocurrency tokens, as well as cryptocurrency addresses for on-chain deposit and withdrawal.

See more: Zero Hash Leveraged for Step’s Teen Crypto Platform

Zero Hash CEO Edward Woodford said in an interview with PYMNTS that the collaboration is interesting because Step’s product is aimed at “financial education.”

New PYMNTS Study: How Consumers Use Digital Banks

A PYMNTS survey of 2,124 US consumers shows that while two-thirds of consumers have used FinTechs for some aspect of banking, only 9.3% call them their primary bank.

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