Photo Credit: Zero

Just before the launch of Apple Card, a startup has taken the credit card industry by storm. The Company, called Zero, has just announced the closing of $20 million Series A. To date, it has raised around $35 million. Some popular investors include Nyca Partners, Eniac Ventures, Signal Fire and others.

The new card combines the features of both a debit card and a credit card. Through the card, you can freely earn rewards without worrying about spending too much. The card immediately deducts your balance, but also gives rewards. The card is also associated with an app, which is present in four levels with different rewards. There are no fees of other typical banks. Zero has collaborated with WebBank to launch the card.

Zero was, originally founded by Joe Washington and Bryce Galen, back in 2016. It deals with mobile banking. It consists of a checking account, a Zero card, and a mobile banking app. The main thing, which sets Zero apart from typical banks, is that it charges minimum fees. You don’t have to worry about foreign transaction fees and overdraft fees.

Overall, the design of the new card is quite simple. It doesn’t have the clutter of the traditional banks. Its app has small features along with a map to recognize the purchases. Hans Morris, who is the managing partner of Nyca Partners, says, “Zero gives a debit-like experience with a breathtaking design. Only a few people know how difficult it is to make a credit card and a checking program. Zero has done both of these things.”

The New York Times has called Zero banking “as a better offer than the traditional credit cards.” The checking system gives you all the benefits of a credit card. Through Zero card, you can ‘earn like a credit card and shop like a debit card’.

This debit-style card has one net number from which you can spend. It shows your transaction from the card. Through the Zero app, you can check your balance constantly and make sure that you don’t overspend. Different logos also make the transaction quite easy. Zero also has a 24/7 customer support system to answer your queries.

As Zero is a World Master card, it earns the cash back. You start with a Quartz level and earn 1% cash back. When a friend joins, your card level transforms to graphite level. When two friends join, your card level transforms to Magnesium level. Your card level becomes carbon level when four friends join. All these card levels have more percentage of cashbacks. Graphite offers 1.5%, Magnesium gives 2% and Carbon earns 3% cashback. You have to pay your full balance statement within the due date, to receive these full cashbacks.

If you are a person who spends $30,000 with $30,000 in deposits, you will get $0 in cashback in a typical bank. However, with Zero banking, you will earn $1500 a year, along with no interest. However, you can earn this much only with the Carbon level.

Zero was launched in November 2018 but only to a small number of customers. It was like a public beta. However, its consumers continued to grow slowly and steadily. Since gaining fame, there are over 204,000 people waiting to become a user. Galen thinks that all this is due to the benefits of Zero banking in comparison to traditional banking.

Apple said that they are launching a credit card with less interest. However, Bryce Galen, the CEO of Zero says, “I think we have done a better job than Apple by introducing a system which encourages no interest.”

Currently, Zero is available only in iOS. However, the Android version is set to release later this year. Once it’s fully operational, Zero banking will pose a serious threat to traditional banking.