Upstart banking startup Zero Financial, Inc. has concluded its second financial round, and it plans to use that new cash to expand its services to hundreds of thousands of new clients on its waitlist.
The San Francisco based fintech company closed a $20 million Series A financing round, led by New Enterprise Associates. Zero has so far raised $35 million from NEA, Silicon Valley Bank, SignalFire and other investors.
Zero is billed as a company that enables consumers to experience the things they like about debit cards, such as keeping the consumer informed about the ACTUAL amount of money they have to spend, with the cash back and flexibility of a credit card. Unlike most brick and mortar banks, Zero doesn’t charge annual fees, ATM fees (beyond the ATM owner’s charges), foreign transaction fees, minimum balance fees, overdraft fees or other fees consumers have come to hate.
Zero has also launched a debit card that offers the kind of perks (such as cash back on purchases) afforded to credit cards. Users can get more cash on purchases by referring friends to the service and qualifying for as much as 3% interest from card upgrades.
Already, 200,000 people have signed up on its waitlist to join Zero, and the funding will be used to expand the service to them in the next few weeks.
Zero boasts an experienced executive team, with former staff from Postmates, Silicon Valley Bank, Wells Fargo, Apple, Capital One and other major tech and financial firms.
Photo credit: Zero Financial/PRNewswire