Banking app for Gen Z is expanding into Europe

GoHenry, a banking app for children and teenagers with a U.S. presence, is expanding into Europe.

On Monday the London-based company announced that it had acquired a French fintech called Pixpay that targets customers aged 10 and up. Pixpay resembles similar fintechs for kids and teens in the U.S., which typically offert debit cards, parental controls, peer-to-peer transfers, financial management tools and more.

Pixpay has nearly 200,000 customers across France and Spain and plans to enter Italy and Germany later this year. GoHenry counts two million customers between the U.S. and U.K. The two companies will operate under their own brands. 

The acquisition and expansion reinforces the popularity of banking apps for Generation Z, which include Goalsetter, Greenlight and Step in the U.S. The apps are also becoming increasingly sophisticated, with mechanisms for young customers to invest their money, play financial literacy games and more.

“Since [we launched 10 years ago] we’ve looked to transform financial education for kids, teens and their parents,” Alex Zivoder, GoHenry's CEO, said in a press release. “We’re excited to combine our expertise in financial education to accelerate not only GoHenry’s growth but to accelerate the financial fitness of … more kids and teens globally.”

GoHenry launched in 2012 and entered the U.S. in 2018. Its U.S. card is issued by the $600 million-asset Community Federal Savings Bank in Woodhaven, New York.

Citi Ventures is one of the investors behind GoHenry. The banking app raised $40 million in 2020.