Even though the company Kard has been on the market for merely eighteen months, the neobank is already a pivot. Whereas Kard, the neobank for young people, launched its services free of charge, it now offers its services on a paid basis. This new service is accompanied by new tools and features such as an app dedicated to parents that allows them to program the sending of pocket money, block or unblock the payment card, for example.
The company launched a new fundraising campaign during which it raised $3.5 million (€3 million) from Founders Future and business angels such as Laurence Krieger and Iris Mittenaere.
” We have learned a lot from the feedback from users and their parents,” said Scott Gordon, CEO of the Paris-based startup. “We realized that we could have done better for parents who, for example, want to be notified when an expense is incurred. From now on, they will have the synthesis and will be able to set up usage parameters.” For teenagers, whom the startup wants to continue to help them become independent in managing their money, a virtual card allowing them to pay online has been added, and smartphone insurance is now offered to them. The jackpot should soon be available and partnerships with brands to offer discounts are being expanded.
If you want to find more details about the neobank for young people Kard and to read the latest financial headlines from around the world, download for free the Born2Invest mobile app. Available for both iOS and Android devices, our companion app keeps its readers updated with the most important news in the world of finance.
Traffic congestion in the teenage market niche
Very concretely, the first 50,000 customers of Kard will continue to benefit from the services free of charge, but new customers will have to pay a subscription fee of $5.87 (€4.99) per month per family (or $58.6 (€49.9) per year for a one-time payment). “Our first members will have free access for life,” said Gordon. “We’ve learned so much from them that this is our way of thanking them. “With 6 million teenagers in France, the neobank has a lot to look forward to, but this turn seems to bury the free stuff once and for all.”
In a world in which opening an account in a branch seems more and more unusual, the new players (Pixpay, Xaalys) as well as traditional banks are multiplying offers to attract young consumers. And between now and the end of the year, a dozen or so companies are expected to fight to get there, which doesn’t seem to dampen the entrepreneur’s ambitions: “Everyone is getting into the niche, which supports our vision that all middle and high school students will eventually have their own account. The battle is going to be fought on the product front and we believe we have the most competitive offer in terms of price and services.”
However, if this field is not to become the scene of a war as costly as the one with adults – N26 and Revolut are gobbling up funds to acquire a new customer – marketing costs should not explode. Otherwise, startups will be forced to engage in a financial arms race that will weigh on their profitability horizon.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in Les Echoes ENTREPRENEURS, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
The multifaceted benefits of Augmented and Virtual Reality in education
Virtual and Augmented Reality (VR and AR) technologies are often praised in education for their ability to deliver higher levels...
Burkina Faso validates a new project to increase access to energy in rural areas
Burkina Faso's project under the African mini-network program of the Global Environment Facility and the United Nations Development Program (GEF-UNDP)...
A crowdfunding campaign was launched by Biofarm, the first digital farm in Europe
A crowdfunding campaign was recently launched on the CrowdFundMe portal in Italy, by Biofarm. The campaign aims at raising $973,000...
Quirónsalud’s owner grows 6% in Spain and exceeds €3.4 billion in 2020
In the last quarter of 2020, Fresenius Helios Spain's revenues were $1.2 billion (€999 million), 15% more than in the...
New capital injection for B2B fintech company Penta
The fintech company Penta has increased its latest financing round to $36.5 million (€30 million). The fresh capital could also...
Cannabis7 days ago
The ANMAT will allow the importation of cannabis-based products in Argentina
Crypto7 days ago
How LODEpay’s Price Oracle is Tackling Silver Spot Price Manipulation
Crowdfunding7 days ago
Trusters closes the first real estate lending crowdfunding campaign for a widespread housing project
Crypto7 days ago
Bitcoin’s price could reach $1,000,000 in this bull run, says Kraken’s Dan Held