Special debit cards, scan-and-pay apps for students aged 10-18 now
Posted: Date Posted – 10:17 PM, Sun – Feb 27, 22
Hyderabad: The pandemic has changed many things, including the way people spend. Pocket money as a concept has also undergone a change to be given, taken and spent digitally. There is a range of prepaid cards and apps that cater exclusively to children aged 10-18 and they don’t need them to open a traditional bank account. These cards must be recharged. These are mainly useful for making payments online as well as making payments in-store.
These have security features that allow cards to be blocked through apps. By using them, children can learn about aspects of money management such as budgeting, prioritizing expenses, and analyzing expenses. KYC is done using the Aadhaar of the parent or guardian. The physical cards are numberless and ensure that there is no misuse even if lost or stolen. Again, the cards can be redeemed through the corresponding apps. Parents can maintain an upper spending limit in addition to getting real-time notifications of spending made through the platforms.
For example, the town of Pencilton has partnered with Saraswat Bank to offer PencilCards to teenagers. These cards comply with RBI regulations and guidelines. The virtual card is free while the physical Rupay debit card will cost Rs 199. Cards can be managed, including blocking, through the Pencilton app, which also runs challenges that teach kids about personal finance concepts. Categories not suitable for children are blocked for transactions. No cash withdrawals are allowed. These will be accepted wherever Rupay products are honored.
IDBI Bank Child Debit Card
This is designed for the younger segment of its customers. Customers are covered by insurance coverage up to Rs 8,000 for lost and counterfeit cards. However, there should be a minimum of two purchase transactions using the debit card in the last three months prior to the date of the event. The purchase limit is Rs 2,000 per day. There will be loyalty points and discounts in merchant establishments. The Kids Debit Card is only issued to children between the ages of 10 and 18.
Fintech company Junio has launched a Junio pocket money smart card for kids. The card can be used online and for in-store transactions. The app has seen more than five lakh downloads which also promotes the financial understanding of children.
Fyp is a payment app and prepaid card for teens. It works in association with YES Bank and Visa. One can also subscribe to a physical prepaid card for offline transactions. This too has no numbers on it. One can receive money from parents/guardians via UPI ID or Fyp transfer.
With FamPay and its numberless prepaid card, miners can successfully make online and offline payments without the need to create a bank account. FamPay is a marketing and distribution partner of the IDFC FIRST Bank prepaid card and FamCard is a co-branded prepaid numberless card issued by IDFC FIRST Bank. One can also place an order for a physical card starting at Rs 99 and offers personalized cards. The prepaid account is charged by the parents. and there are no minimum account requirements.
Slonkit is a rechargeable prepaid VISA card linked to the Slonkit mobile application. One can transfer small amounts instantly, create budgets, analyze spending in all categories, set daily spending limits, and use it as a tool to learn smarter money management.
Convenient but parents should exercise caution
Transactions have become easy thanks to payment apps and cards. But when it comes to children, there must be adult supervision. Crimes related to digital payments have increased in recent years and parents should take the time to understand information security issues not only for their children but also for themselves, said Pankaj Bansal, Chief Commercial Officer of BankBazaar. com.
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