Step, a San Mateo, California-based financial services company for families and teens, raised $3.8m in seed funding.
Backers included Crosslink Capital, Collaborative Fund and Sesame Ventures. In conjunction with the funding, Crosslink general partner, Eric Chin, joined Step’s board of directors.
Co-founded by CJ MacDonald and Alexey Kalinichenko, Step provides families and teens with a banking solution that integrates certain key features and benefits of a checking, savings, credit, and debit cards into one account.
Its solution includes a bank-issued spending card that combines many of the benefits that traditional debit and credit cards offer while adding features specifically designed for parents and teens. The card is linked to a mobile app which enables users to send and receive money instantly, shop online or in-store, as well as use Apple Pay. It is integrated with a fee-free deposit account that earns 2.5% interest on money. Step customers are not required to have a minimum balance and will not be charged any hidden or overdraft fees.
The company is working with Evolve Bank and Trust to develop this offering. Step plans to roll out access to the platform starting this Spring.