It was just
reported that Venmo is testing a new feature that would let adults create a debit card for their kids that’s connected to their account. It makes sense; giving teens an allowance is common, and more and more people aren’t carrying around cash. A digital allowance could also help parents send their kids money in a pinch, since
more than half of U.S. children now have a smartphone.
A look at the digital debit card market for teens:
Current is the, ahem, current leader in this space. We saw them launch three years ago to “bring allowances into the digital age.”
At the time, Current founder and CEO Stuart Sopp wrote that the idea behind the tool was to teach teens financial literacy and give parents more control around how children spend their money in a society where “allowances remain firmly footed in the past.” The Current Student Account launched with two components: a Visa-branded debit card and an app that gave families a way to mutually decide how money would be earned and spent. The company currently has over 800,000 accounts and raised a $20 million Series B last year.
Fintech startups like Kard and Revolut also have plans to launch their own teen debit cards, joining startups like Current and U.S.-based Step. 💸