Step Mobile Inc., a mobile banking app for teens and families, said it raised $22.5 million in Series A funds led by Stripe.
The funding round was backed by actor and rap icon Will Smith’s Dreamer’s fund, rapper Nas, Wndrco, retired NFL great Ronnie Lott, Matt Rutler, Kevin Gould and Noah and Jonah Goodhart. Existing investors Crosslink Capital, Collaborative Fund and Sesame Ventures also participated in the round.
“Teens and parents are ready for a seamless mobile banking experience, one meticulously designed for their needs,” co-founder and CEO CJ McDonald said. “We’ve partnered with the best in the business to create the right solutions for the next generation.”
Step offers an FDIC-insured, no-fee mobile account backed by Evolve Bank and Trust, with a co-branded Mastercard debit card, a savings account offering up to 2.5% interest, access to 35,000 no-fee ATM machines and the ability to send and receive funds from a mobile app.
Parents are provided the ability to set and monitor spending limits and account holders have access to digital wallets like Apple Pay and Google Pay.
Step has begun beta testing the mobile app to friends and family and has a waiting list of 500,000 people in less than three months since the initial launch.