Led · Debt Financing · Oct 2022

Step is a digital banking service aimed at teens and young adults that has grown to nearly 4 million users since launching on September 30, 2020. Its core product includes a credit card and banking features, and its primary revenue source is interchange fees from that card. The company recently launched a crypto investing feature (starting with bitcoin and targeting roughly 40 cryptocurrencies by month end) alongside a financial literacy platform for kids and parents. Step plans to add NFTs, DeFi tools such as staking, and a stock investing feature expected before the end of the year. CEO CJ MacDonald said the company has grown substantially, employs more than 100 people, and declined to disclose revenue. The firm raised debt to fund product development and hiring and to extend its runway as it scales. Step is a mobile banking service that provides teenagers (ages 13–18) FDIC-insured bank accounts without fees and a secured Visa card to help establish credit. The app offers Venmo-like peer-to-peer payments, a popular referral program and has leveraged social media influencers for growth. Step grew to more than 1.5 million users within six months of launch and is signing up over 10,000 accounts per day. The company has raised more than $175 million to date, most recently a $100M Series C led by General Catalyst, and says it has not yet spent funds from its prior $50M Series B. Step plans to hire across operations, engineering, product and design, aiming to double its 65-person team over the next year. Management intends to enter credit, lending and investment products as existing users age up, and Franklin Templeton’s participation signals a move into investments. Step provides teens and families a free, FDIC‑insured bank account, a secured spending card, and a P2P payments platform that lets users begin building credit before age 18. The product is powered by bank partner Evolve Bank & Trust and deposits are insured up to $250,000. Step says it crossed one million users in less than four months after launch. The company highlights a focus on financial literacy and plans to scale user acquisition across social platforms. To prepare for growth it recently closed a venture debt facility and added high-profile investor support. The founding team, led by CJ MacDonald and Alexey Kalinichenko, draws on experience from Gyft, First Data, Square and Google. Step offers no-fee, FDIC-insured bank accounts and a secured Visa card aimed at users ages 13–18, combined with a peer-to-peer payments experience. The app functions as both a bank account and P2P platform, with referral-driven growth and a $3 referral incentive. Step grew to over 500,000 users within two months of launch and is adding roughly 7,000–10,000 new accounts per day. The company has about 50 employees and is actively hiring to support rapid growth. Near-term plans include leveraging celebrity partners to promote financial literacy; longer-term product roadmaps call for credit cards, loans and other offerings for users as they turn 18. Financially, Step has raised a $50M Series B and has raised over $75M to date. Step offers an all-in-one, no-fee banking solution designed for teens and their families, combining checking, savings, debit and card controls in a single mobile app. Accounts are FDIC insured through Evolve Bank and Trust and include an interest-bearing deposit account (currently 2.5% with round-up savings) and access to a 35,000-ATM network with no hidden fees. The Step card is co-branded with Mastercard and provides Zero Liability Protection; Stripe supplies issuing and processing technology. The app supports instant P2P transfers, Apple Pay and Google Pay, real-time budgeting, parental oversight and controlled spending limits. Founded by CJ MacDonald and Alexey Kalinichenko, the team cites 50+ years of combined fintech experience from companies including Gyft, First Data, Square and Google. Step began beta testing with friends and family, has a waitlist exceeding 500,000 people, plans broad commercial availability in the Fall, and intends to use new funding to accelerate the roadmap and hire.