Mitto has 150,000 registered users on its youth-focused fintech platform, but plans to expand after raising fresh funding.
On Monday (16 September), Mitto announced that it has raised €2m in seed funding for its payment card and app designed for ‘Gen Z’ teens.
The funding round was led by Spanish bank Banco Sabadell, through its innovation and corporate venture arm InnoCells. There was also participation from Athos Capital, and Spanish social media influencers AuronPlay and Wismichu, among others.
Mitto is a prepaid card for teenagers aged 14 and upwards. Parents can use the app to transfer money to their kids instantly, who can then spend the money using their accompanying Mitto card.
Although aimed specifically at teenagers, Mitto’s services can be used by anyone up to the age of 30. Members who sign up early can access Mitto merchandise, including tote bags, phone cases and T-shirts.
The company was founded by Marcos Cuevas, Angel Garcia and Mikel Aizpurua. Cuevas said that the app was set up to help children and teenagers develop better financial literacy.
He told TechCrunch: “Despite being born digital, Gen Z today don’t have access to a tool to use digital money.
“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 financially support their children in their first steps using a digital financial product.”
Based in Spain, Mitto has plans to expand to other European and Latin American countries, where it says there is demand for such a service.
However, other fintech companies are also trying to tap into this market. In January, Revolut announced an upcoming product entitled Revolut Youth, which would allow existing customers to add their children to an account as a secondary customer, providing them with a separate card and their own current account, while parents retain control over the account and monitor transactions.
Much like Mitto, Revolut cited improving financial literacy as a motivation for launching Revolut Youth. Revolut has expressed interest in creating a service for children from the age of seven.
Mitto says it has 150,000 registered users and a waiting list of more than 80,000 users in several countries. Aside from Revolut, there are a number of other competitors in the UK and US, including GoHenry and Current.
Cuevas added: “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 make it more sustainable.”