Zero raises $20 million from NEA and others for a credit card that works like debit

This post was originally published on this site

Curated by: Startups

 

Just ahead of the launch of the Apple Card, a startup that has its own take on modernizing the credit card industry, Zero, is announcing the close of its $20 million Series A. The new round of funding was led by New Enterprise Associates (NEA), and brings Zero’s total raised to date to $35 million, including both equity and debt funding.

Other investors in the round include SignalFire, Eniac Ventures, Nyca Partners and some unnamed school endowments. Zero had previously announced an $8.5 million raise in fall 2017, led by Eniac, and had raised $7 million in venture debt from Silicon Valley Bank.

Zero has a clever idea that targets millennials’ hesitance to sign up for credit cards.

Today, only 33% of millennials have a major credit card, a Bankrate survey found — largely because they’re wary of falling into the vicious debt cycle. Instead, this younger demographic often only carries a debit card. But that also means they’re missing out on credit card benefits — like points, rewards and cash back.

Zero’s idea is to offer a rewards credit card that works like debit.

The Zerocard itself is a World Mastercard, so it earns credit card cash back.

contactedorg

%d bloggers like this: