Since 2014, Greenlight Financial Technology has been providing financial education and debit cards to its child and teen customers. However, now the company launched the Greenlight Family Cash Mastercard to help those same customers build their credit before they reach adulthood.
Parents add their teens as authorised users of the Greenlight Family Cash Card, which is available with all Greenlight subscription plans, starting at USD 4.99 per month. Families can then earn up to 3% cash back on all purchases. The card is issued by First National Bank of Omaha.
Teens can track their credit card balances on the Greenlight app while parents can set up flexible spending limits and get real-time purchase alerts. In addition, the company’s in-app financial literacy game Level Up now includes credit lessons to aid teens as they use the card.
In a statement, officials from Greenlight said that it’s the 3% cash back, Level Up, and parental controls that separate Greenlight from credit card rivals. They especially noted the educational component so that children and teens learn credit card concepts, including paying off the credit card each month to avoid compounding interest that can lead to debt and that an excellent credit score can help them save thousands of dollars when it comes time to buy a car or house.
Greenlight has a portfolio of over 6 million customers and has raised about USD 550 million in total venture-backed capital since its inception. One of the most recent investments included a USD 260 million Series D round in 2021 that valued the company at USD 2.3 billion.
The credit card is the newest offering for the company, which in December 2023 introduced a free web-based financial literacy library aligned with the K-12 national standards for schools, teachers and students. Prior to that in October, it also added family safety features to its subscription plan called Greenlight Infinity, which is priced at USD 14.98 per month for the whole family.
Despite the growth in its customer base, Greenlight hasn’t been without challenges. In January 2023, the company confirmed that it laid off around 21% of its employees, with company executives saying the decision at that time was a ‘pre-emptive move’ driven by the macroeconomic environment.
Up next, the company’s teacher’s guide combined with Level Up, called Greenlight for Classrooms, was rolled out in Georgia, US and will go nationwide in the fall of 2023. Greenlight is also putting focus on expanding Level Up’s financial literacy content.
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