A total amount of $2.9 million was raised by the French startup, Vybe in a funding round with the aim of building a challenger bank for teens. Currently, the product is tested with a soft launch. The users are given a Mastercard payment card, in addition to an e-wallet.
How does the Vybe account vibe?
The users can send and receive money with the help of the IBAN which comes with every Vybe account. Applicants who want to start an account and who are below the age of 18 must undergo the KYI(Know Your Identity) process along with their parents.
Parents are provided with maximum clarity concerning the details of the card. Certain limits can be set on card payments or if need be, even block the card. It is also possible for the parents to view the transactions. According to the plans and strategies of the startup, revenue generation will be primarily from interchange fees as well as from brand partnerships.
Although Vybe isn’t live, it hasn’t stopped it from attracting over 375,000 downloads. The card has also been pre-ordered by over 260,000 teens. Post-delivery of over a thousand cards, the results are quite promising and encouraging. As per the estimates, the card is being used once every two days, particularly by early adopters.
The present funding is an extension of the round from existing investors. Ronan Le Moal(former CEO, Credit Mutuel Arkea), Kick Club, and Manoel Amorim are the investors who took part in the funding.
The flow of investments is due to the lucrative element related to banking products for teens. The potential and the almost unicorn status of the startups offering debit cards for children make them magnets for investments.