Plastyc just announced that it has raised $2 million to expand its financial services for the a4Aunderbankeda4, namely people who dona4a4t have bank accounts.
The New York startup said its products are aimed at the 60 million Americans who dona4a4t go to banks or credit unions, and the a4Amillions morea4 who are struggling to obtain credit cards or pay checking account fees. It offers iBankUp accounts that include a Visa prepaid card, a direct deposit number, and an online checkbook, but dona4a4t require a credit check or a minimum deposit. (There is a small monthly fee and an ATM withdrawal fee.) It also offers prepaid Visa cards through its Upside program.
The company was originally aimed at a younger audience (the a4Aya4 in Plastyc is supposed to suggest &''Generation Y&''), but a Plastyc spokesperson said the customer base turned out to be broader, probably because of the recession. She pointed to data from Quantcast saying the main user demographic is 35 to 49 years old. There are 110,000 people who have signed up for Plastyc, and 75,000 monthly active users, she said, and they typically make less than $60,000 per year.
The funding comes from Core Innovation Capital, the investment partner for the Center for Financial Services Innovation (a research and advocacy organization that focuses on the underbanked). Plastyc said it will use the money to add services that help customers improve their savings and credit, and to offer a version that banks can sell with their own branding.
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Companies: Center for Financial Services Innovation, Core Innovation Capital, PlastyC
Companies: Center for Financial Services Innovation, Core Innovation Capital, PlastyC
Anthony is a senior editor at VentureBeat, as well as its reporter on media, advertising, and social networks. Before joining the site in 2008, Anthony worked at the Hollister Free Lance, where he won awards from the California Newspaper Publishers Association for breaking news coverage and writing. He attended Stanford University and now lives in San Francisco. Reach him at anthony@venturebeat.com. (All story pitches should also be sent to tips@venturebeat.com) You can also follow Anthony on Twitter.
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