Zero Raises $20M

Zero, the mobile banking startup enabling consumers to experience the things they like about debit cards with the cash back and flexibility of a credit card, announced a $20m Series A round, led by New Enterprise Associates (NEA).

Founded in 2016 and led by Bryce Galen and Joel Washington,  the California-based startup offers a rewards credit card called Zerocard, which works like a debit card, and an FDIC-insured checking account called Zero Checking. The “Debit-style Experience” displays transactions from Zerocard and Zero Checking together in the Zero app, with one net number to spend from.

Zero has partnered with WebBank, a Salt Lake City-based bank, to issue Zerocard. Deposits are held at Evolve Bank & Trust (a Memphis-based bank and Member FDIC) and insured up to FDIC limits.

“Few people understand how complex it is to launch a credit card or a checking account program. Zero is the first US startup to launch a fully integrated and elegantly designed product with both from scratch. Importantly, Zero gives consumers the ability to fully control and understand their own spend, without compromising on rewards – something that traditional account options have failed to provide.” – Rick Yang, Partner at NEA.

“Apple recently made headlines by saying they’re launching the first credit card that encourages you to pay less interest. I think we’ve done one better and launched the first credit card that encourages you to pay no interest.” – Zero’s founder and CEO Bryce Galen.

Bottom Line: Over 200,000 people are waiting for their “Christmas miracle.”