Vybe Raises $2.9 Million as Fintech Startup Looks to Launch Banking Service Directed at Teens

By Thomas Price Friday, April 9, 2021

With financial education becoming a major cornerstone of development among younger generations, many companies and startups have been looking to begin banking earlier as well. Vybe is a fintech startup company looking to serve as a neobank specifically designed to serve teenagers who would have difficulty going through traditional financial institutions. The startup recently raised new funding in order to support the launch of its service, expand business operations, and continue development on the Vybe app, which will house the majority of features for users.

A girl paying with her credit card on her laptop.

How Vybe Works and Early Signs of Success

The fintech startup works in a similar vein to many other neobanks. Instead of having traditional locations and branches, the company works on a purely digital basis relying on the Vybe app to serve as a virtual bank for users. The Vybe app is currently available on both iOS and Android devices.

The main difference between the fintech startup and other similar business types would be the core user base. Vybe focuses specifically on bringing teenagers into the neobanking world early.

Setting up an account would simply consist of going through the KYC process with a parent, where the user would then have their own Mastercard for payments alongside an e-wallet to manage their new account. The company would then ensure that parents have access to all financial records, allowing them to set limits on how much the teens are spending per month. The parents would have access to block certain transactions through the app. For its users, the fintech startup offers benefits on fast food and restaurant purchases alongside certain discounts on partnered brands.

The fintech company has a straightforward business model, taking a fee on certain interchanges and partnering with brands through rewards and benefits programs. The ease of generating revenue has been a major marker of probable success for the business. Another major point is that the company app, though not even live yet, has already garnered 375,000 downloads. The fintech business has also received 260,000 pre-orders for the Vybe credit card. This presents a lot of early enthusiasm for the company product even before services are launched.

Vybe’s Recent Funding and Future Plans

In an extension of a recent funding round, the business raised $2.9 million. The funding was largely raised by Ronan Le Moal, Kick Club, and Manoel Amorim. This new funding will help the company to proceed with a soft launch of the neobank and credit card service as a way to test business functionality. Early members are using their cards on average every two days, showing solid frequency so far.

Vybe is part of a growing neobanking market. In fact, the global neobanking market is worth around $34.77 billion right now. However, the entire industry is set to see incredible growth. Over the next eight years, the global neobanking market is set to reach a compound annual growth rate of 47.7%.

Direct competitors for Vybe include Revolut Junior, which offers debit cards and savings to young people, and Greenlight, which has a section of the neobanking service dedicated to teenagers. Given the ongoing popularity of Vybe, while still in its soft launch, the startup has incredible potential to grow over the next few years.

About the Author

Headshot of Thomas Price

Tom Price is a writer focusing on entertainment and sports features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.

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