Zero is preparing to launch a credit card that works more or less the same as a debit card.
According to Bankrate survey, only a paltry one-third of young adults have credit cards. This situation can be attributed to concerns about bad debts. Thankfully, a startup called Zero thinks that it can provide a solution to this situation. It’s, therefore, preparing to launch a credit card that works more or less the same as a debit card. Led by ENIAC Ventures and the participation from Lightbank and NEA among others is currently raising $8.5 million in funding round.
According to the CEO Bryce Galen, with this Zerocard you don’t have to worry about going and paying or even bill tracking on regular basis. The company has an app that regularly updates in real time about transfers, purchases, and the balances available for immediate viewing. Since you know that you have the money that you are spending getting into long-term debt is difficult. Apart from this it also has the features of a credit card. Since it processes on credit card networks, it’s much easier to pay customers cashback rate for all purchases.
Users of this card can also boost their cash percentage by meeting spending requirements or referring customers. Although it has not been launched they have already added about 150,000 people. This is because of the incentives that involved referring new customers. However, it’s planned to launch in 2018. The problem is that it is not compatible with the current bank accounts. Instead of these new customers will have too open new checking accounts with Zero and particular bank partner.
Currently, according to Zerocard it’s working with an FDIC insured and says that it has designed the product carefully so as to be fully compliant with all the regulations. According to Galen, they were able to offer people better economics and much better experience as compared to what traditional banks offer. Zero is currently headquartered in San Francisco and employs 12 workers. It’s, therefore, one of the best cards to have.