Zero scoops up $2.5m for debit cards with credit card perks

Mobile banking startup Zero has raised $2.5m in a seed round of funding led by ENIAC Ventures.

The round also saw participation from New Enterprise Associates, Nyca Partners, Lightbank and Middleland Capital.

The company offers a connected Visa card that can act as a debit card while also earning rewards as a credit card would.

The San Francisco company aims to launch publicly next year.

Zero founder and CEO Bryce Galen said, “Many people don’t want to take on debt and don’t have time to worry about multiple credit card statements, balances and due dates in the name of chasing down rewards, yet they still don’t want to give up the opportunity to get cash back on their spending.”

The company says it will generate revenue from merchant processing costs rather than charging customers banking fees.

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