Thursday, May 31, 2007
PayJr. unveils kids wallet for online shopping
byDon’t be surprised if your kids soon ask you for virtual allowance so they can spend their money online. PayJr., which offers the popular VisaBuxx reloadable debit card for teens, intends to launch a new “wallet” program for younger consumers by the end of this year, according to American Banker (registration required). 
According to the article, the basis of the wallet program is for parents to transfer funds (e.g., allowance) into kids’ online accounts; the kids in turn can use the money to shop at kid-friendly online retailers – ones with a direct relationship with PayJr.
The program, according to PayJr. executives interviewed for the article, offers parents a way to regulate spending while teaching kids about e-commerce.
This news comes on the heels of an earlier announcement by PayJr. and Serverside Group to offer teens an online-based design-your-own VisaBuxx card service, to be launched this summer.
Analysts see these moves as ways for financial companies to create relationships and loyalty with younger and internet savvy consumers, while company executives tout it as a way to promote responsible spending and financial education.
Regardless, don’t be surprised if your kids ask you for virtual allowance.
