Step teen banking app reaches stars to raise $50 million

The teen banking app Step has raised $50 million from investors led by Coatue Management alongside celebrities such as singer Justin Timberlake, influencer Charli D’Amelio and former quarterback Eli Manning.

Step, which offers teens a bank account connected to a secure payment card and peer-to-peer payments, also said it has secured funding from existing funders including Stripe, Will Smith’s Dreamers VC, CrossLink Capital and Collaborative Fund.

San Francisco-based Step allows parents to view balances and activity in real time, add money to their teens’ accounts, and manage and freeze cards. He does not charge any fees but earns money through the exchange of cards.

Other stars involved in the fundraiser included The Chainsmokers, Kelvin Beachum, Larry Fitzgerald and Andre Iguodala, Step said in a statement Wednesday.

The startup, which has attracted more than 500,000 users since launching two months ago, will use the funding to grow the team and invest in its technology, CEO CJ MacDonald told Reuters in a video call.

We make sure to create scalable solutions and manage growth, said MacDonald.

Step is one of many new banking apps focused on children and teens in the United States, as businesses look to capitalize on the global surge in digital payments and e-commerce. It competes with products from companies such as Greenlight, Copper and JPMorgan Chase & Co.

These companies say they aim to make transactions easier for parents and their children in an increasingly cashless economy, while providing more modern financial education tools.

“As someone who has not always had financial stability and who made many mistakes in this area as a young man, I know the importance of financial education and having access to economic platforms. that can work for everyone, Smith, who is a co-founder of Dreamers VC, said in a statement.

Reporting by Anna Irrera.