GoHenry Acquires PixPay to Expand Youth Banking Services

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London-based GoHenry, which provides Visa debit cards and a financial education app for children aged 6 to 18, has acquired French company Pixpay, which operates a similar service, according to a Sunday press release. July 10.

Ten years after its launch in the UK, the new agreement will allow GoHenry to rapidly grow its customer base in mainland Europe. Currently, GoHenry has over two million users in the UK and US.

The acquisition follows a successful $40 million fundraising in 2020, which GoHenry has used to accelerate its leadership position in the UK and expand into the US.

Investors include French entrepreneurial growth capital fund Revaia, US growth capital fund Edison Partners, Citi Ventures and Muse Capital.

Founded in 2019, Pixpay has established itself as the leader in banking for teenagers in France and Spain, with nearly 200,000 members.

The startup plans to expand into Italy and Germany later this year and has raised more than 11 million euros ($11.1 million) to date to fund its growth.

“Ten years ago, we saw an opportunity to give young people access to the digital economy,” said Alex Zivoder, CEO of GoHenry. “Since then, we have sought to transform the financial education of children, teens and their parents through our revolutionary financial education app and debit card.”

According to the statement, GoHenry and Pixpay will continue to operate under their own brands with no change in management, headquarters or staff. Instead, he says the acquisition “will allow both companies to accelerate their growth by executing knowledge and resource synergies.”

On the news, Benoit Grassin, CEO of Pixpay, said, “We are delighted to join the GoHenry Group as we prepare to accelerate Pixpay’s expansion across Europe. GoHenry’s experience and legacy will only serve to strengthen the already strong proposition offered by Pixpay. We look forward to building a strong, long-term relationship with GoHenry and are excited about what the future holds.

In the United States, GoHenry competes with Copper Banking for the teenage market.

Noting record high student loan and credit card debt, Copper Banking CEO Eddie Behringer told PYMNTS’ Karen Webster, “It’s really the first generation that has been hyper-sensitive to the missteps of past generations in about these things.” Unlike young people in the past, he said today’s teenagers think “it’s cool to be smart with money.”

Watch the interview: 15-year-olds are reshaping banking and credit, and change is afoot

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