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Visa and Payments Startup 'Current' Launch Debit Card for Kids That Ties to Parental Control App

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Visa has partnered with payments startup Current and today the companies are launching a new "smart debit card" and iOS app that aim to give kids and parents more autonomy and security when it comes to doling out spending money (via TechCrunch). The new Current card functions like any other Visa debit card, allowing teens and younger kids to spend money without needing cash, but comes connected with a parentally-controlled iOS or Android smartphone app.

The Current iOS app [Direct Link] has two sides, for both parents and their kids. Parents can set up specific chores within the app, include a description, and set an amount of money that will be funneled into the kid's Current card, through the parent's connected bank account, upon completion. Automated allowances can also be set to recur on a weekly or monthly basis, and parents can block spending from specific businesses like casinos and bars, as well as set spending limits.

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The company said that its biggest inspiration was helping to streamline the weekly allowance hassle that parents have to deal with when their kids require money, which has traditionally been given in cash.
With Current, you'll get your own debit card and an app with three smart wallets for spending, saving, and giving. Asking parents for money can be awkward, they don't always have cash on them and you have to go through this every week. Current automates your allowance so it arrives in your spending account when you need it.

If you get stuck somewhere and you're out of money, you can get more from your parents instantly through Current. It's as simple as texting and the money will show up right away.
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On the kid side of things, once they are issued the Current card, they'll have access to three separate wallets for spending, saving, and giving. The spending wallet is directly linked to their Current card for day-to-day expenses, the savings wallet allows them to place part of their allowance into a safe place for later spending, and the giving wallet encourages donation to thousands of charities. The company said that all of the app's features will help to inspire "real world, financial education for kids."

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Current also works with Apple iMessages, Facebook Messenger, Kik, and a few other text services, so parents can send money to their kid's Current card through a text message. The company said that any bank in the United States can be added into the app, and an international expansion is "in the works."

Multiple subscription plans are available for parents interested: $5/month for a month-to-month subscription with an additional $5 charge for the debit card; $3/month for a 1-year subscription and a free debit card; and a $2/month for a 2-year subscription and a free debit card. The latter two subscriptions are billed upfront at the start of each billing period, meaning $36 and $48 are charged every year and every two years, respectively. Bank transfers, payments, and in-network ATM usage have no additional fees, but replacement cards cost $5.

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More information about Current, including security and privacy features, can be found on the company's website. Once parents sign up and make a Student Account for their kids, which requires a social security number, Current will issue the Visa debit card to the designated address.

Those without kids can also sign up for Current's free-to-use individual wallets, which function like traditional mobile payment apps and allow for peer-to-peer payments among friends and family.

Article Link: Visa and Payments Startup 'Current' Launch Debit Card for Kids That Ties to Parental Control App
 
Article Link
https://www.macrumors.com/2017/05/09/visa-and-payments-startup-current-launch-debit-card-for-kids-that-ties-to-parental-control-app/
Fees? Nupe. I have my kids each with the Square Cash app, that uses ApplePay and a fallback to a free Bank of America student account. Soon Square will have physical debit cards, and perhaps Apple will intro P2P payments. Best of luck though, Visa.
 
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Bob Zimmerman said:
Looked neat ... right up until the word "subscription". Nope. Totally uninterested.
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While I fully agree, I do understand that services like this require infrastructure, sales, support and other components that cost real dollars to setup and maintain. It is not unreasonable for VISA/Current to want to at least break even with this. In the long haul the ability to track and control spending while giving youngsters access to the financial system can result in more experienced / more mature money management as they get older. That too is a win.
 
I like the idea and I don't mind paying for the convenience but these prices seem a little steep. I'm really hoping Apple Pay has a peer to peer option soon.
 
This reminds me of my Visa Buxx card from middle school. Basically just a debit card that your parents can load up with money to make you feel really cool having a Visa card with your name on it. And there were no subscription fees either.
 
Hmm I can do almost all that for free with Capital One. App to manage/transfer funds? check. Debit cards for the kids? check. Spend/Save/Share accounts for each of them? check. Auto deposit allowance on my own schedule? check. Fees? Nope. In fact, they earn interest.
 
Pretty cool idea. Cards are how we spend money now so we might as well give our kids allowances on their cards.

As for learning to save that's on you, the parents, to teach your kids that. The app is there to see where your child has been wasting money.

I like how you can block ATM access and spending money in certain categories too!
 
tmiw said:
Contract law in the US makes such products pretty uncommon, actually; a lot of banks require you to be 18 to obtain any kind of banking product.
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Oh okay it's different in Belgium. Kinda stupid because it's a great way for younger people to have that opportunity.
 
Mac-lover3 said:
Oh okay it's different in Belgium. Kinda stupid because it's a great way for younger people to have that opportunity.
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Yes but nothing is stopping you from having a debit card early on. I had my debit card since I was 16 and have the same account now that I'm 27.

Also, prepaid cards anyone can purchase and they are abundant in Safeway, Walmart etc and there's no age restriction on these.

By the way I'm in the US, so I don't see the difference here. There's plenty of prepaid card accounts for kids including a few offered by the big banks themselves. Wells Fargo offers "Kid Checking" with a regular visa debit card.

They even are chipped like regular adult cards.
 
JRobinsonJr said:
While I fully agree, I do understand that services like this require infrastructure, sales, support and other components that cost real dollars to setup and maintain. It is not unreasonable for VISA/Current to want to at least break even with this. In the long haul the ability to track and control spending while giving youngsters access to the financial system can result in more experienced / more mature money management as they get older. That too is a win.
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I've worked in the financial industry and dealt with credit card processing. You would not believe how rickety the whole system is. I'm shocked there haven't been more major breaches.

All that said, this is exactly the kind of thing modern credit card processors do all the time. It's what their fraud detection systems are designed for. They're just giving someone the ability to make some of the decisions for them, which actually saves the card companies money. Even if it didn't, this is a differentiating feature. Creating those is typically considered the cost of doing business.
 
dontwalkhand said:
Pretty cool idea. Cards are how we spend money now so we might as well give our kids allowances on their cards.

As for learning to save that's on you, the parents, to teach your kids that. The app is there to see where your child has been wasting money.

I like how you can block ATM access and spending money in certain categories too!
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Hi There! Would you mind if we potentially used your Current feedback on our website? Thank you!
 
Bob Zimmerman said:
I've worked in the financial industry and dealt with credit card processing. You would not believe how rickety the whole system is. I'm shocked there haven't been more major breaches.

All that said, this is exactly the kind of thing modern credit card processors do all the time. It's what their fraud detection systems are designed for. They're just giving someone the ability to make some of the decisions for them, which actually saves the card companies money. Even if it didn't, this is a differentiating feature. Creating those is typically considered the cost of doing business.
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Fair enough, and I too have seen the house of straw that is the financial world. Still costs money, and with increased regulatory and investor monitoring it is still necessary to justify new products in terms of increased revenue or reduced expenses. Everything else gets thrown out.
 
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