Today In Digital-First Banking: Step Lands $50 Million Investment; EWS, TCH Enable Zelle Payments Via RTP Network

In today’s top news in digital-first banking, Step has notched $50 million in a Series B funding round, while Early Warning Services and The Clearing House (TCH) announced that Zelle transactions can now be cleared as well as settled through the RTP network. Plus, Affirm is launching a debit card with buy now, pay later (BNPL) functionality.

A-Rod, Others Invest $50 Million In Teen Banking Firm Step

Step, the teen banking company, announced it has landed $50 million in a Series B funding round, including investments from TikTok influencer Josh Richards and baseball star Alex Rodriguez. “The rapid adoption of Step reflects the evolving needs of today’s teens and we’re really excited to be working with partners like Alex and Josh to help push our financial literacy movement even further,” Step Founder and CEO CJ MacDonald said in a release.

Early Warning Services, TCH Now Allow Zelle Payments Via RTP Network

Early Warning Services, LLC, a FinTech owned by a number of the country’s biggest banks, and TCH announced that Zelle transactions can now be cleared and settled via the RTP network. Bank of America and PNC Bank are the first to send Zelle payments via the RTP network, providing a digital payment experience to businesses and people that utilizes the global ISO 20022 message standard.

Affirm To Launch Buy Now, Pay Later Debit Card

California FinTech Affirm is rolling out a debit card with BNPL functionality. “Soon, whether shopping for a laptop at Walmart or glasses at Warby Parker, consumers will be able to choose to buy now or pay later, using the Affirm Card at check out, online or in-store, with no hidden fees,” Affirm CEO and Founder Max Levchin said in a press release.

Fed Money Sending System Goes Down For Hours

The Federal Reserve System letting financial institutions (FIs) transmit money back and forth was down for a number of hours on Wednesday (Feb. 24). The Fed referred to the breakdown as an “operational error,” according to a published report. Fedwire Funds, FedLine Direct, FedLine Advantage, FedCash, FedACH and Check 21 were among the affected services.