Watch Out Robinhood, SoFi And Block: MrBeast Is Coming For Gen-Z Fintech

• MrBeast noted that the deal aimed to give “millions of young people the financial foundation.”
• Step has over 7 million users and notable investors such as Stephen Curry, Social Media sensation Charli D’Amelio, Justin Timberlake, Will Smith, and The Chainsmokers.
• Step competes with the likes of Block, Robinhood and SoFi, which are trying to scale growth through attracting younger customers.

YouTube star "MrBeast", whose real name is Jimmy Donaldson, grabbed a whole lot of attention over the weekend following his tie-up with Salesforce for a Super Bowl stunt that ran into some technical difficulties. Now, as a new trading week begins, Donaldson has revealed his next big move: a push into financial technology.

"I'm so excited to share that we are acquiring the financial services app, @step," his post on X read. "Nobody taught me about investing, building credit, or managing money when I was growing up. That's exactly why we're joining forces with Step!"

MrBeast noted that the aim was to give "millions of young people the financial foundation" he never had. Beast Industries is backed by Chamath Palihapitiya, a Canadian-American entrepreneur widely regarded as the face of the 2020-21 Special Purpose Acquisition Company (SPAC) boom. 

What Is Step And Why Does It Matter

"We bought a bank," Palihapitiya said in a post on X. Donaldson has more than 466 million YouTube subscribers, and the latest acquisition expands Beast Industries, his conglomerate spanning YouTube, Feastables, and other ventures, into financial services, leveraging his massive, predominantly young audience.

"Financial health is fundamental to overall wellbeing, yet too many people lack access to the tools and knowledge they need to build financial security," said Jeff Housenbold, CEO of Beast Industries. 

Step has over 7 million users and notable investors, including Stephen Curry, Social Media sensation Charli D'Amelio, Justin Timberlake, Will Smith, and The Chainsmokers. General Catalyst and Stripe also back the company.

Step offers features such as fee-free accounts, a Visa debit card for minors (to build credit early), savings tools, and other financial services for users under 18, often with parental oversight. It partners with a bank (Evolve Bank & Trust) to offer FDIC-insured services rather than operating as a full bank.

How Does Step Compete With Big Fintech Names?

Step competes with Block, Robinhood, and SoFi, which are scaling by attracting younger customers who prefer app-based banking over traditional banking.

Block's Cash App caters to a younger audience and is popular with Gen Z, while Robinhood and SoFi do not offer a dedicated product; they have seen a surge in customers from younger age cohorts. In December, Block said that the younger generation increasingly wants a debit card plus buy now, pay later. 

Block executives said they don't want to get stuck in a revolving debt spiral, and the company is seeing that in its product attach rates among the teen cohort and folks in their late teens or early 20s. Cash App has 26 million monthly active users, and 20% of teens in the United States have a Cash App card.

Robinhood executives on their last earnings call said there is an opportunity to continue reaching people when they are younger and as customers get wealthier. Piper Sandler has noted Robinhood's "unrivaled brand recognition" among U.S. Gen Z and millennials, positioning the company to profit from shifting investor patterns.

SoFi Technologies reported in January that it added a record 1 million new members in the fourth quarter, bringing total members to 13.7 million, up 35% year over year, with most new members younger.

What Is Retail Thinking?

Retail sentiment on Robinhood jumped to 'extremely bullish' from 'bearish' territory a month ago, with message volumes at 'extremely high' levels, according to data from Stocktwits. Robinhood is expected to post quarterly results on Tuesday after the markets close. 

According to a poll on Stocktwits, 62% of voters expect the company to beat earnings per share and revenue, while 15% expect the company to miss Wall Street estimates. Meanwhile, 11% of voters expect HOOD profit to surpass expectations and revenue to miss estimates, while 12% expect a miss on profit and beat on revenue. 

Sentiment on Block improved to ‘neutral’ from ‘bearish’ a day ago, while on SoFi, retail sentiment dipped to ‘neutral’ territory from ‘bullish’ for the same period.

Shares of Robinhood have gained nearly 55%, SoFi stock has jumped 43%, while Block shares have declined over 33% in the last 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: Cleveland-Cliffs Stock Sinks On Earnings Miss, But Retail's Buying The Dip As Management Sees A Turn Coming

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