Pixpay raises 3.5 million $ for its neobank dedicated to teens
After the wave of neobanks for individuals and for professionals, here are the neo-bars for teenagers. Among them, Pixpay, a company created in January 2019 and already announcing its first fundraising at 3.1 million euros. Global Founders Capital, the armed arm of Rocket Internet, leads this roundtable alongside ten business angels, including fintech bosses such as Alexandre Prot (Qonto) and Jean-Charles Samuelian (Alan). This funding will allow the young company to launch its product next September. Pixpay will offer a mobile account for 10-18 years, backed by a Mastercard credit card, compatible with Apple Pay and Google Pay.
“We want to have a product that has the same level of technology and is as innovative as N26 and Revolut but is designed for specific uses”, summarizes Benoît Grassin, co-founder of Pixpay and former co-founder of MyDoctor, Salesforce of the doctor resold to the summer of 2018 at Doctolib. The application is characterized by its ease of use and multiple features popularized by the neoBanks (blocking the card, consultation of the balance in real time, notifications for each transaction, budget tracking tools …).
Pixpay also has an educational vocation because “teens do not necessarily know what is the value of money,” says Caroline Ménager, co-founder of Pixpay and former marketing director of Franprix and Cinemas Pathé Gaumont. The young people will be able to create prize pools for a project (buy a skateboard for 100 euros for example) that they will abound and will be able to ask their relatives to complete the prize pool if necessary. An automatic rounding system or a kitty for a cause will also be set up. Other features will be added later.
Pixpay is building partnerships with brands to enable future customers to get discounts, exclusive deals or cashback. “We are creating a sort of club that will have many benefits, like the American Express,” says Benoît Grassin. The Neoban does not want to make quantity but to target “iconic and affinity” brands, says the leader. “Since teens will probably only have the Pixpay credit card, we will probably capture 80% of their transactions and will therefore know their consumption very thinly,” Caroline Ménager adds. This club also has a great interest for brands that have trouble to know their young customers who are not usually payers.
Even if the payment account and the card are used daily, there are some disadvantages. With its approval of electronic money dispenser, Pixpay can not offer ibanised accounts, which means no debit and only possible one-off transfers. Once the young person is no longer financially dependent on his parents, Pixpay will no longer be suitable. The start-up will propose to join a bank … or rather a neo-bank, they confide. The fundraising will also be used to recruit developers, partnership managers, marketing profiles to set up an acquisition division, as well as operations and product profiles. Pixpay plans to increase its workforce from 25 to 25 by the end of 2019. It plans to tackle the European market as early as 2021 and targets two million customers within five years. A big challenge since other neobanks for teens arrive on the French market, like Xaalys, which launched last April. Side traditional bank, only Kador de Boursorama exists … for the moment.
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