Mitto, a debit card and app designed for “Generation Z” teens, has raised €2 million in seed funding.
Backing the round is Spanish bank Banco Sabadell via its innovation and venture arm InnoCells, along with Athos Capital, and Spanish social media influencers “AuronPlay” and “Wismichu”, amongst others.
Claiming to plug a gap in existing payment solutions for Generation Z (from 14 years old), Mitto offers a digital wallet and/or physical card for spending online or offline. Parents can send instant money to their children by topping up the wallet and get an overview of their “purchasing” profile.
In turn, the idea is that children gain a degree of financial independence by using Mitto and better understand their spending habits. More broadly, Mitto says it want to help develop financial literacy amongst Gen Z kids.
“Despite being born digital, Gen Z today don’t have easy access to a tool to use digital money,” says Mitto co-founder Marcos Cuevas. “Mitto is born to fix this by allowing them to own a digital wallet and virtual and physical cards. At the same time, we allow parents to educate and support financially their children in their first steps using a digital financial product”.
Cuevas says that the longer term mission of Mitto is to deliver the best payment solution experience for Generation Z and to help them understand the impact their spending has on the planet — as lofty as that sounds.
“We are committed to helping this new generation to change their mind about finance, to succeed by giving them the tools to understand their purchasing habits and — in the future — the impact of their decisions in the world, and how they can help to make it more sustainable,” he adds.
To that end, Mitto says the funding will allow it to further invest in its product and partnerships to become “the financial platform of choice” for Generation Z.
The Spanish fintech wants to launch its proposition in other European and Latam countries where it says demand exists. It claims a waiting list of more than 80,000 users in several countries and says it currently has 150.000 registered users.
Meanwhile, directly-comparable competitors include GoHenry and Osper in the U.K., and Current, Step, and Greenlight in the U.S., to name a few.