Teen Banking Apps Secure More Funding
Current and Step have both raised new funding rounds.
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• less than 3 min read
Teen allowance is being upgraded from cash wads to full-on banking apps. Yesterday, two such apps, Current and Step, announced new funding rounds of $220 million and $100 million, respectively. Now worth $2.2 billion, Current tripled its valuation in just five months.
Both apps let parents and teens make deposits and offer no-fee checking accounts, since in high school being a thousandaire feels like being London Tipton.
How are Current and Step different?
- Current focuses on signing up parents, while Step focuses on recruiting teens.
- Current has almost 3 million users. Step has 1.5 million, but has only been around for six months.
- Current's backed by traditional VC heavyweights like a16z. Step's investor lineup looks more like a red carpet: Charli D'Amelio, The Chainsmokers, and Will Smith, to name a few. And yesterday, it revealed Steph Curry was on board.
- Current started as a debit card for teens, but it's expanded to digital banking more broadly.
Zoom out: It's never too early to start building a credit score, apparently. Greenlight and Till Financial, digital banking apps that extend services to younger kids, also raised new funding rounds recently.
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