French FinTech startup Vybe has raised $2.9m from a funding round to build a challenger bank service for teenagers.
Investors in the round included former Crédit Mutuel Arkéa CEO Ronan Le Moal, Kick Club and Manoel Amorim.
Vybe are said to be currently testing the product through a soft launch, with users receiving a Mastercard payment card paired with an e-wallet, according to TechCrunch.
Every Vybe account comes with its own IBAN so users are able to send and receive money. If users under 18 years old want to open an account, they have to go through a know-your-identity process with a parent or guardian. Parents and guardians are also able to set limits on card payments, block the card if necessary and view transactions.
The company intends to create revenue from interchange fees as well as partnering with brands and offering a reward system.
Vybe is not live yet, however, the app has attracted over 375,000 downloads, with 260,000 teens preordering a card. So far, thousands of cards have been delivered and the first metrics are considered “encouraging” for Vybe. The first adopters of the card have been found to use their cards once every couple of days.
Vybe joins a number of other firms in France aiming to be big players in the banking products for teenagers space. Other key firms include Kard, Xaalys and PixPay.
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