FinTech Step Announces $50 Million Round with Celebrity Participants

As 2020 draws to a close, it seems that FinTech deals aren’t done just yet. Last week, the online banking platform Step announced it had raised $50 million. The Series B was led by Coatue with participation from Stripe, Crosslink Capital, Collaborative Fund, and Dreamers VC. Additionally, several celebrities have invested in the startup, including Charli D’Amelio, Justin Timberlake, Eli Manning, Larry Fitzgerald, and others. With the latest funds, Step has now raised a total of $75 million to date.

While digital bank accounts have become a major FinTech trend, Step does things a bit differently in that it’s geared towards teens and families. In addition to a free banking account, the platform also enables P2P payments and even allows its teen users to build credit by using their Step Card — a debit card meets secured credit card. To offer these banking services, Step currently partners with  Evolve Bank & Trust, Member FDIC.

Since launching a mere two months ago, Step has already amassed more than half a million users. In addition to its digital banking services, the app also teaches financial literacy and spending tracking tools. According to the company, the average teen customer currently saves three times more than they spend on the platform.

In a statement announcing the funding round, Step founder and CEO CJ MacDonald said, “Since Step’s launch, we’ve seen massive demand for this new type of all-in-one banking solution, making it much easier for teens to learn about money management. We founded Step to help improve the financial future of the next generation and this investment not only validates what we’ve built, but it will also help us continue to innovate and grow with our users.” Meanwhile, 16-year-old social media star and Step investor Charli D’Amelio said of the service, “As a Step partner and customer, I’ve been able to see firsthand how easy Step makes it to manage your money while providing the educational resources that today’s teens need but have largely been unable to find—myself included. I’m excited to be able to use my platform to help close this gap and have made a direct investment in Step to help them develop even more useful products.”

Although celebrity investment doesn’t guarantee FinTech success by any means, it can certainly raise a startup’s profile. In the case of Step, having a famous partner who’s also in the key demographic for your brand is a double win. With that — not to mention an extra $50 million in reserve — Step seems well poised to breakout as new FinTech to watch throughout what’s left of 2020 and into the new year.


Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Top 10 Personal Finance Articles of the Month — June 2022 

It’s time again for one of my favorite features here on Dyer News: a look at the top 10 personal finance articles of the month. To start, we'll take another look at financial independence and freedom. Then, with the housing market going a bit crazy lately, we'll feature a pair of articles on home buying. Lastly, we'll cover tips for one-income households, finance after death, fighting inflation, and more. As...

Bilt Rewards Launches Travel Portal with Benefits for Cardholders

Last year, the startup Bilt made a splash when it announced a new service that would reward users for paying their rent. That premise was then expanded upon with the launch of the Bilt Mastercard, which is issued by Wells Fargo. Now, continuing to capitalize on both the hype of their product and the demand for travel, Bilt has debuted another new offering for customers. This week, Bilt Rewards announced...

Cash App Introduces Round-Up Investing Feature for Debit Card

Debit card customers looking to grow their investments gained a new, automated option today as Block Inc. (formerly Square Inc.) officially announced a new feature for its popular Cash App. Now, customers with the Cash App Cash Card can opt into Round Ups as a means of growing their investments. When this feature is toggled on, Cash App will round up debit card purchases to the nearest dollar and invest...