SAN MATEO, Calif.—Step is launching a mobile banking app for teens. Working in partnership with Evolve Bank and Trust, Step said it will offer traditional banking
services via the app that allows parents to monitor teen spending.
The fintech firm is paying 2.5% interest on savings, no-fee access to 35,000 ATM machines, no overdraft fees and the ability to send and receive money through the app, Mobile Payments Today reported.
The company also provides teens with a spending card that is linked to the app, allowing users to make mobile purchases, shop at retailers and make payments using Apple Pay.
"Teens expect instant services, but existing banks have failed to innovate and meet their needs," CJ McDonald, co-founder and CEO of Step, said in a release. "Most banks charge fees and implement rules and restrictions that hurt teens financial progress."
Spring Launch
Step allows teens to request funds through the app and parents can send funds and get complete transparency over what their kids are buying through the mobile device.
Step is scheduled to launch this Spring and allowing teens and parents to sign up on a wait list. The Step platform, available for Android and iOS, will be rolled out to customers on a first-come, first-served basis, the company said.