A startup called Zero thinks it has a solution to this and it is gearing up to launch a credit card that functions like a debit card. The startup is also raising $8.5 million in a funding round led by ENIAC Ventures, including participation from NEA, Lightbank and others.
With the Zerocard, “you don’t have to worry about going and paying or bill-tracking that on a regular basis,” said founder and CEO Bryce Galen. The company is offering an app that updates in real-time with deposits, purchases, transfers and the net balance available for viewing right away. There’s “no risk of getting into long-term debt because you always know that you’ve got the money you’re spending.”
Yet it also will have the perks of a credit card. Because Zerocard processes on credit card networks, it makes it easier to pay customers a consistent cash back rate between one and three percent, for all purchases.