“Schools don’t teach kids about money,” Step co-founder and CEO CJ MacDonald said of the app. “We want to be their first bank accounts with spending cards, but we also want to teach financial literacy and responsibility. Banks don’t tailor to this and we want to be a solution, teaching the next generation of adults to be more responsible with money in the cashless era.”
Per Techcrunch, the app itself enables teens to access bank accounts that do not come with a minimum balance or fees, and provides tips on how to manage money. It is led by Stripe, and saw backing from Will Smith’s Dreamers fund and Nas, raising just under $30 million in funding.
“To that end, Step has been marketing directly to its future users, doing viral things like incentivizing sign-ups by giving users a dollar towards their bank accounts (when they come online) for each person that gets referred and also signs up using a person’s code,” writes Techcrunch.
“Teenagers under 18 will even be able to sign up for accounts without parental or guardian consent — although these accounts with be very limited in their functionality.”