Prior to the launch of the Apple Card, start-up company Zero launched its own debit-like credit facility. The news follows the company’s success in attaining $20 million in Series A Funding.
According to a report from Tech Crunch, the Series A Funding was led by New Enterprise Associates (NEA). Other investors who decided to back the company include Eniac Ventures, Nyca Partners, SignalFire, and some anonymous school donations. Pymnts reports that the total company funding has now reached $25 million, including debt and equity funding.
Credit Card Features
Zero aims to market its recently launched debit-like credit facility towards millennials. With millennials’ hesitation to incur credit card debt, Tech Crunch reports that only 33 per cent of these individuals carry a major credit card under their name, with most people in this age bracket preferring to carry a debit card.
With Zero’s Zerocard offering, the company states that users can earn a minimum of 1% cash back rewards as it is powered by World Mastercard. However, news sites note that unlike a traditional credit card offering, the Zerocard comes with an FDIC-backed checking account named Zero Checking. According to Zero, both of these accounts work together to help cardholders see the current amount in their tab.
Apart from these, Zero will also do away of charging cardholders with annual fees and other additional ATM charges. Likewise, Pymnts notes that the Zerocard will not charge its customers for foreign transactions, minimum balances, and overdraft fees.’
To complement Zero’s offering, the company has also launched an app that exudes a minimalist design approach. Tech Crunch reports that the app features the cardholder’s detailed list of transactions, the merchant’s logo, and the vendor’s map location.
As of writing, there are more than 200,000 people waiting to avail the Zerocard.