Step

Step provides digital banking services specifically for teenagers between the ages 13-18 via a mobile app. Teenagers are able to sign-up for the account via the app and it also requires parents or guardians to download the app separately to authorize these accounts.

The platform provides a digital banking account, which facilitates deposits, and also includes customized credit cards which the company refers to as ‘Step Cards’, which are offered free with no fees, under the license of Visa. The primary goal of a Step Card is to enable teenagers to build up and improve their credit history before they turn 18. It does this by linking Step Cards with deposit accounts, enabling users to spend up to the amount in their deposit accounts via their Step Cards.

Following this, the platform offers a ‘Smart Pay’ option through which the platform automatically pays outstanding credit dues via the user’s deposits, in turn contributing to building a positive credit score. It also offers a premium card called the Step Black Card , which provides rewards and benefits such as a 5% savings bonus on balances up to USD 1 million. Additionally, it features priority customer support, exclusive experiences, and a laser-engraved metal card. The Black Card was open for signups to join the waitlist as of June 2023.

In addition, the platform also enables users to link and integrate other debit cards and bank accounts with their Step account, and also set up direct deposits for paychecks. Step also launched a high yield savings account in May 2023, that offers 5% return on balances up to USD 250,000 held in its direct deposit accounts. To qualify, customers need to deposit a minimum of USD 500 per month. Moreover, the platform also facilitates payment transfers among users and enables users to send and receive money directly via the app. The app also integrates with digital wallets such as Apple Pay and Google Pay, allowing users to make contactless payments.

Step also offers cryptocurrency and stock investing features through its platform. Users can trade cryptocurrencies such as Bitcoin, and the platform also aims to incorporate additional features such as NFTs and decentralized finance (DeFi) tools like staking in the future. The stock investing feature provides access to over 1,000 stocks and ETFs, enabling users to build a portfolio based on risk rankings assigned to each security. Furthermore, it allows users to buy fractional shares for as low as USD 1.

Key customers and partnerships

As of October 2022, the company claimed that it had added nearly 4 million users since its launch in September 2020. The steep growth in customers has mainly been attributed to strong social media awareness campaigns, which include collaborations with popular social media personalities, and to its referral program, which pays out USD 5 to customers, for every new person that signs up.

Step offers its banking services under the license of Evolve Bank & Trust.

Funding and financials

In October 2022, Step secured USD 300 million in debt financing co-led by Triplepoint Capital and Evolve Bank & Trust. It had geared the funds towards its staff and product development.