Zero, a U.S. fintech startup, announced on Wednesday it secured a $100 million revolving line of credit facility from a fund managed by the investment manager, Neuberger Berman. Founded in 2016, Zero claims to be the first modern banking experience to combine the simplicity of a debit card with the cashback of a credit card.
“With Zero, there are no annual, maintenance, overdraft or foreign transaction fees. Zerocard is usable at ATMs and you don’t pay any ATM fees beyond what the ATM owner charges. At the Carbon level, all ATM fees are refunded, including what the ATM owner charges. The Zero app with Zero Checking also lets you send and receive same-day ACH transfers and direct deposits, deposit checks by taking a photo (coming soon) and send paper checks from the app (coming soon), all without any fees.”
Zero also revealed it is powered by a checking account (Zero Checking) to hold funds, a credit card (Zerocard) that makes great rewards possible, and the Zero app. The company further explained:
“With Zero Checking, you can earn 0.50%, 1.00%, and 1.75% annually on average Current Position rewards (your deposits minus your spending) at the Graphite, Magnesium, and Carbon levels respectively. Level up by meeting annual spend requirements or by inviting friends to apply and become customers who add payroll direct deposit and make a couple of qualifying transactions (see Zerocard Agreement for complete details).”
Speaking about the facility, Founder and COO of Zero, Joel Washington, reportedly stated:
“Demonstrating the success of the ‘debit-style experience’, the credit facility is an extension of the industry’s continued desire to re-imagine personal spending for new and current customers. This expanded credit facility provided by Neuberger Berman will allow Zero to propel its mission of providing users with one of the best credit card offerings on the market.”
The company then added it is planning to use the funds to “drive value” to its customers by creating a more transparent banking experience.
