Gen Z neobank Step launches cryptocurrency investing and rewards

Diving Brief:

• neobank Step recently secured $300 million in debt financing, rolling out crypto investment and rewards on its platform, fintech firm Gen Z-geared announced Tuesday.
• The new offer allows teens, with the consent of a legal guardian or a parent, to buy and sell bitcoin. Step said it plans to add stocks and other cryptocurrencies to the platform soon.
• The fintech company, which claims to have more than 3 million customer accounts, said it is partnering with digital asset infrastructure and regulatory platform Zero Hash to provide cryptocurrency transaction and custody services.

Diving Insight:

“Generation Z is the generation of creators, entrepreneurs and investors. They are redefining Rules and control their financial future early in life thanks to products said Jim Lapp, co-CEO of Triple Point Capital, which participated in Stipe’s recent debt financing round. “We are excited to partner with the Step team to continue expanding the business to millions of financially savvy teens and young adults.”

Users under the age of 18 need a parent or legal guardian to sign a Step account, which comes with a secure spending card that allows users to build credit.

The fee-free account is being offered in partnership with Step’s sponsoring bank, Evolve Bank & Trust, which has also participated in the new bank’s recent debt round.

To date, the fintech firm has raised more than $500 million in equity and debt financing from a group of investors including Stripe, Coatue and crosslink Capital, General Catalyst, and Triple Point.

The startup has also received investments from famous investors such as singer/actor Justin Timberlake, NBA player. Steve Carrie, Social Media Personality Charlie damelio and others.

Step said the new digital asset offering allows customers to earn rewards in crypto when they use their Step Card. The company said the rewards offer is an expansion of its recently launched cashback rewards platform.

“In less than two years, we have been able to help more than 3 million customers Create a strong financial foundation and start thinking long term CJ MacDonald, founder and CEO of STEP, said in a statement. “We are pleased to give teens and young adults the power to build credit, budget, spend, save and profit Now invest in their financial future directly with the Step App.”

The startup is the latest crypto product offering in the fintech space, joining the likes of Current, MoneyLion and stash in expanding into space response to customer interest.

Step, like many other fintech companies delving into cryptocurrency, said it is complementing the new service with a focus on education.

The company launched a six-lesson financial literacy program called Money 101, which is designed to help students and parents understand the foundations of modern banking, investing in stocks and cryptocurrency.

Stipe said the program is being taught in more than 100 high schools across the country.

Originally published at San Jose News Bulletin