Satya Siba Nayak, 15, uses a debit card to pay for YouTube Premium and Netflix, download apps from Google Play, and pay for goods when traveling with friends. By signing up for an app called FamPay, Nayak can get his own card for offline and online payments.
“My father does not live with us because he works in Karnataka and my mother is not familiar with Google Pay and others.
He said that in the past, the one-time password prompt (OTP) had opened his parents’ eyes, but with a dedicated FamPay account, he didn’t have to worry anymore.
Young Indians like Nayak say that cash gains from their parents are not convenient or always profitable. For many parents, a prepaid wallet is a great way to give their child more freedom and set boundaries. Now a new wave of FinTech platforms are creating complete debit programs for teens and seeing millions of dollars in transactions every month. But as the number and value of transactions across these platforms increases, the growth of apps that are the best sources of finance for children is also a concern.
Before moving to FamPay, Nayak got money from his parents in the form of pocket money. He often uses his parents’ debit card to order online. However, due to the ease of getting your own card, the price of the Nayak (online and offline) is Rs. Up so much. 2500 per month.
FamPay is one of the most popular new banking app in India (known as Neobanks) for kids and teens. Other popular apps in this category are Junio, which was released by a former Paytm executive this May, and Walrus, which was released in 2019.
junio prepaid card Junio Image
With Junio, parents can top up their children’s prepaid cards with their mobile app
Solajyoti Burman is another active FamPay user. Berman, 17, signed up for the app in January to have his own transaction card without relying on the steps his parents chose.
Like Nayak, Burman costs around Rs 2500 per month via FamPay. However, he found that the total cost was Rs. He fell from above. 3000 per month before getting a FamPay card because he has limited money in this account compared to the unlimited access he got from his father’s Google Pay account.
New era platform against traditional bank
In the first quarter of 2021, FamPay had 13,502 registered users and 38,446,609 transactions, the company said. Junio, on the other hand, said he managed transactions worth Rs 650,000. 30,000,000,000,000,000,000,000,000,000 users after being introduced. Junio also said he had transactions worth Rs 2,000,000. 10 crowns only in October.
Since traditional banks don’t allow teens to keep separate bank accounts without a parent or guardian, the FamPay and Junio platforms are trying to fill that void. Therefore, you don’t need your parents’ approval to create an account, nor do they have to have their own account for this application or ask for documents like birth certificates.
All you have to do is download the device app, confirm your phone number, and register by entering personal information such as your full name and address. After filling in the registration form in the special application, the platform will require your Customer Knowledge (KYC), which the parent must fill out by uploading a government-issued identity card.
A registration fee is also charged for applications. FamPay Rp. Charge once. 299 for the normal card or Rs 599 for the premium card. The main differences are rewards and links like Zomato Pro and map customization.
Fampay famcard image to compare FamPay models
FamPay offers kids two different prepaid card options
Junio, on the other hand, has a registration fee of Rs 99. The company adds that in exchange for the registration fee, users will be provided with a flush card of Rs. Cashback up to 1000.
The app gives parents the ability to track their children’s spending through analytics and custom dashboards. At the same time, parents can suspend all transactions from them or receive notifications of new payments from their children via the app.
While the FamPay and Junio apps are designed as platforms for teens, they don’t want to be a solution until their customers grow up. The goal of these new players is to be a one-stop banking solution for these teenagers as they complete their teenage years.
“We opened a bank account and if we were satisfied with that, we wouldn’t go and switch,” said Shankar Nat, co-founder of Junio. “So that’s what we wanted to do, and we wanted to catch kids between the ages of 12 and 13 and connect them with them through our app.”