Step Mobile provides banking services aimed at helping individuals under 18 build a positive credit history. Their main product is a secured Visa Credit Building Card, which allows users to establish credit early, along with a savings account offering a 5.00% interest rate for qualifying deposits. Users can also invest in fractional shares of stocks, ETFs, and bitcoin with no commission fees. Step Mobile operates on a subscription model, charging $99 per year, and aims to make banking and investing accessible for younger audiences.

Crosslink Capital

Collaborative Fund

Stripe

Coatue Management

Dreamers

Larry Fitzgerald

Justin Timberlake

Eli Manning

The Chainsmokers

Kelvin Beachum

Charli D’Amelio

Andre Iduodala

WndrCo

Ronnie Lott

MANTIS

Franklin Templeton Investments

Sarah Friar

Will Smith

Jared Leto

General Catalyst

Jeffrey Katzenberg

General Catalyst Partners

Jacqueline Reses

Gokul Rajaram

Stephen Curry

TriplePoint Capital

Physicians Capital

Fintech

Financial Services

Step Mobile

A chain is only as strong as its weakest link, as the saying goes. And as the fallout from Synapse’s chaotic bankruptcy continues, containing the impact of its collapse across the financial services and FinTech supply chain ecosystem is top of mind for both the over 100 affected firms and industry observers alike.That’s because the implosion of Synapse, a middleware firm whose services allowed other businesses to embed banking services into their own offerings, has rattled the prospects of many other startups, while at the same time underscoring just how interdependent the FinTech world is — and how vulnerable it can be to a single point of failure.Fundamentally, the Synapse story is a B2B story, one with commercial relationships at its center.Synapse’s troubles potentially began — or were brought to light — when Synapse’s largest client, Mercury, decided to work directly with Evolve, Synapse’s core banking partner, cutting out the need for Synapse as an intermediary.That set off a chain of events, few of them good, for Synapse’s other clients who relied on the FinTech provider as their connective tissue.And it highlighted the fact that effective management of third-party risks, as well as the mitigation of single points of failure, is perennially essential for B2B success — no matter the industry a business is operating within.Read more: Five Things to Watch as Synapse Bankruptcy Impact Shakes Up FinTechsSynapse Customers Struggle to Navigate Fallout From CollapseMany FinTechs relied on Synapse as a foundational partner to jumpstart their own growth, and Synapse’s collapse has underscored the cascading effects of what can happen when a core partner of a business’s own core partner moves their business elsewhere.Along with Mercury, FinTech companies Relay, Cleo, Dave, Yotta and Stilt are all among Synapse clients that have since moved on to other Banking-as-a-Service (BaaS) providers or decided to shift their own product offerings.Neobank Juno Finance, which provides on-ramp services to the cryptocurrency ecosystem, has been unable to find a new partner post-Synapse’s collapse because its relationship with the crypto sector has kept other banks at bay, per a company blog post.“This has been incredibly difficult and frustrating for us as well and the entire team who has been caught in the crosshair … between Synapse and Evolve Bank & Trust,” said Juno in the same statement, noting that the company has been provided with “very limited visibility and information.”Teen-focused banking app Copper, for example, has decided not to find another provider and is instead pivoting to sell its platform as a solution to other banks, while crowd-funding investment marketplace Mainvest is shutting down its business entirely by June 14 due to Synapse’s bankruptcy.“External factors have led us to the difficult decision to cease Mainvest’s operations and dissolve the company,” the company wrote.And as many as 100 other companies have found themselves struggling to navigate Synapse’s bankruptcy and collapsed relationship with Evolve. Because Synapse’s architecture was unregulated, it is unlikely that federal officials will step in to help as they did when Silicon Valley Bank (SVB) collapsed last year, leaving any resolution up to a potential settlement or court order, neither of which have happened yet.Still, it’s not all bad news. After moving on from Synapse, business banking platform Relay announced Wednesday (May 29) it had raised $32.2 million Series B round.PYMNTS has reached out to both Synapse and Evolve for further comment.Read more: Managing Third-Party Risks Emerges as Key B2B IssueWhen the Middle Falls out of MiddlewarePYMNTS Intelligence found this past summer that 65% of banks and credit unions have entered into at least one FinTech partnership in the past three years, with 76% of banks viewing FinTech partnerships as necessary to meeting customer expectations. And a full 95% of banks are focused on using partnerships to enhance their own digital product offerings.“With complex ecosystems, you have a higher number of partners than you may have historically had” in the past, Larson McNeil, co-head of marketplaces and digital ecosystems at J.P. Morgan Payments, told PYMNTS

Synapse’S Downfall Provides Case Study In B2B Partner Management

Step, the digital banking service geared toward teens and young adults, is now offering a 5% rate on its savings accounts.With just one in three Americans having adequate savings for emergencies, Step is among dozens of startups, like Current, Greenlight, Super.com and Hyve, focused on helping people save.There are no monthly fees and no minimum balance requirements on the Step accounts for customers who open an FDIC-insured savings account with up to $250,000. However, to secure that 5%, users have to set up a monthly direct deposit of $500 or more from a payroll provider or employer.“The direct deposit is to encourage people to utilize the full suite of Step products,” CJ MacDonald, co-founder and CEO of Step, told TechCrunch.And to be clear, “the savings percentage is not interest, but instead earned as cash rewards directly funded and managed by Step,” according to the company.Speaking of rewards, also new is Step’s elevated rewards program. Customers who qualify for the 5% on their savings will also earn 3x points on purchases at select merchants; 2x points on restaurant dining, food delivery and charitable donations; and 1x points on entertainment, streaming and gaming.The news comes about a month after Apple launched its savings account balance of 4.15%. When that announcement was made, current data from Bankrate showed savings accounts APY rates of 3.5% to 4.75%. As of May 17, the APY range is 4% to 4.85%, so it’s safe to assume that Apple’s entry into the market perhaps inspired neobanks and others financial organizations to close the gap.Step always had a goal to offer the highest percentage among competitors in order to attract and grow with customers, so Apple’s move didn't inspire it to launch the high savings rate, MacDonald said.“The hard thing with interest rates is that they keep changing,” MacDonald said. “In the last year and a half, rates have been going up

Move Over Apple, Step Launches 5% Savings Account

Step, the leading mobile banking platform on a mission to improve the financial future of the next generation, announced the launch of Step Black Visa Signature® - a revolutionary rewards card that builds credit, not debt.

Step Revolutionizes Rewards Card Industry With The Launch Of Step Black

PALO ALTO, Calif. -- January 6, 2022 -- Step, the all-in-one financial solution for the next generation, today announced Step Savings Goals, a free financial product built specifically for the way teens want to save.

Introducing Step Savings Goals & Instant Cash Deposits

Step, the leading all-in-one financial platform for the next generation, is launching a waitlist today for its highly anticipated premium card, set to debut this summer.

Step Introduces the Step Black Card – A Premium Rewards Card Designed for the Next Generation

In addition to this savings offer, Step also unveiled an elevated rewards program.

Step launches 5.00% on savings balances up to $250,000, one of the best rates in the country. | Step

Geek Life: Fun stories, memes, humor and other random items at the intersection of tech, science, business and culture. SEE MORE. Former Seattle Seahawks star Bobby Wagner, who has since moved on to the Los Angeles Rams, during a stop at Step, a financial services company, on his tour of Silicon Valley tech companies and firms on Monday. (Tri Nguyen Photo)

Ex-Seahawks Star Bobby Wagner Helps Kids Get The Tech Exposure That Shaped His Life Outside Football

Step, the all-in-one financial solution for the next generation, announced up to $300 million in debt funding led by Triplepoint Capital and Evolve Ba

Step secures an additional $300,000,000 to accelerate growth, launches crypto investing and a national financial literacy curriculum

PALO ALTO, Calif.--(BUSINESS WIRE)--Step, the all-in-one financial solution for the next generation, announced up to $300 million in debt funding led by Triplepoint Capital and Evolve Bank & Trust. The new funding brings the total capital raised by Step to $500M. With this new round of funding, Step will accelerate investments in product infrastructure and continue to bring ground-breaking financial products to the next generation. Step is the first platform to allow people under the age of 18 to build a positive credit history with their own secure Step Visa Card, opening doors to better terms and more comprehensive financial products earlier in adulthood

Step Secures An Additional $300,000,000 To Accelerate Growth, Launches Crypto Investing And A National Financial Literacy Curriculum

Fintech services for credit building and banking

Step Mobile

Fintech services for credit building and banking

Step Mobile

Fintech services for credit building and banking

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