Paris-based Pixpay, a company (launched in January 2019) that aims to replace cash when parents give pocket money to their children, allows anyone at least 10 years old to open a Pixpay account, acquire a debit card, and start managing their allowance money.
Although challenger banks have been around for a while, they’re mainly designed to offer services for adults. For example, if you want to open an account with top Fintechs such as Revolute or N26, then you have to be at least 18 years of age. Notably, you can open an account with Lydia if you’re 14+ years old, after obtaining parental consent.
In a manner that’s similar to French startup Kard, Pixpay aims to fill the age gap by providing the latest payment methods to teenagers so that they can easily perform online transactions. Parents and their children can download and install the Pixpay app in order to begin using the service.
Kids will get a Mastercard only a few days after they’ve opened an account with Pixpay. The company provides most of the same financial services that you’d get from other challenger banks. Users have the option of customizing their PIN code. They can lock and unlock it, and get notifications after each transaction.
The app also lets you place restrictions on certain features, such as limits on transactions, ATM withdrawals, digital payments and cross-border payments. Pixpay also allows users to create easy-to-use virtual cards for making payments online.
Users have the option of launching special projects and setting aside funds to purchase expensive items after saving for several months. Parents can also set interest rates on a vault account in order to teach their kids how to save money and manage their finances.
Pixpay is planning to allow teenagers to collect payments after doing small side jobs such as babysitting.
Parents are able to send money instantly via the Pixpay app. Users can top-up their Pixpay accounts with supported debit cards and also send money at regular intervals (for instance, €40 a month) or do one-time payments (like paying €150 for your back-to-school shopping).
Parents can get a comprehensive overview of several accounts if they have many kids that are using the Pixpay app. The French Fintech firm is planning to allow multiple parents to manage their children’s accounts, which might come handy for divorced or separated parents.
Pixpay costs €2.99 per month for each card. Transactions and ATM withdrawals in the Eurozone may be performed at no additional cost. However, there’s a 2% charge on payments made in foreign currencies and also for ATM withdrawals made outside of the Eurozone.
Pixpay raised $3.4 million (appr. €3.1 million) from Global Founders Capital in July 2019. The firm has teamed up with Treezor, a banking-as-a-service platform that allows users to create cards and online wallet accounts via an API.