Acorns micro-investment service received $ 30 million investment from PayPal

This month, developers of the Acorns investment application announced a $ 30 million investment from PayPal with the participation of the Rakuten Tech Fund. As a result, the project since its inception received an investment of $ 62 million. Currently, Acorns has more than 850,000 active investment accounts in its database.

The principle of operation of Acorns is quite simple - the application rounds the amount of purchases, investing the balance. For example, if you spend about 190 rubles for a cup of coffee, the amount is rounded up to 200 rubles, 10 of which are invested in your account. Acorns users provide the service with information about their bank accounts, allowing the application to make automatic investments by writing off the balance from the accounts.
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“Young people can gradually increase their account balance through various sources of income. Micro-investing allows anyone to start saving money, ”said Acorns CEO Noah Kerner, who sees the target audience of the project in millennials.

The core of Acorns audience in the amount of 75% is users aged 18 years and up to 34 years. It is noteworthy that the application is absolutely free, and a subscription costs just $ 1 for users with an account of less than $ 5000. When the invoice amount is higher, the maintenance cost is 0.25% of the account balance.

Acorns partners in venture funds note that project developers have an excellent opportunity to change the overall approach to working with investments by using only mobile applications. In addition, Acorns teach young people to invest in long-running projects.

In recent years, mobile banking projects, as well as Acorns-style investment projects, are gaining more and more popularity - this is facilitated by a simple use pattern compared to traditional banks. This is especially noticeable for the younger generation, whose representatives prefer such services rather than traditional banks.