There are countless new startup banks that are challenging the mainstream players. However, Pixpay is a firm that helps those that are under 18 manage their finances.
Adapting to change
Cash is becoming more and more of an obsolete form of payment in a growing digital age. Therefore, parents are increasingly struggling to handle their children’s pocket money allocation. Handing paper money to a child who purchases their games online or orders their clothes on Amazon isn’t going to help.
This is where Pixpay fills the gap. Any person over the age of 10 can create an account and receive a card. They can then manage their pocket money via the French company’s app.
TechCrunch reports that once registered, a MasterCard will be sent in the mail. Users can customize the card’s pin code and freeze it if they misplace it.
Users will also receive notifications following each transaction such as how much spent and the remaining balance. This is similar to other services such as Revolut. However, these other cards can only be used by adults.
To help the young users of Pixpay manage their finances, restrictions can be placed on the account. Limits on transactions and ATM withdrawals can be set. Abroad and online payment features can also be tailored. In addition, there is a virtual card feature for digital transactions.
Furthermore, the information displayed on the app will help users and their parents monitor their spending habits. The spending analytics are complemented by the ability of users to create money-saving projects.
If a user wants to purchase a product, they can set money aside each time they receive an allowance and can calculate how much is left to their goal. This may help teens prepare before being swamped with finance services such as Apple Card.
Parents can be further involved with the process and help teach their children about financials by defining interest rates on a vault account. This will help children practice for the future while allowing parents to be more active in their child’s development in a modern age.
Room for improvement
There is space for growth in the use of Pixpay. The firm is looking into using the app for teens to take payments for ad-hoc jobs. Tasks such as babysitting or car washing could soon be paid for via this app.
Ultimately, this would enable users to have a de-facto bank account until they are ready for the real thing. The company is also looking into letting multiple guardians manage the account. This would be useful in instances such as helping those who are separate parents.
The cost of using Pixpay is €2.99 per month. ATM withdrawals and payments are free within the Eurozone. Meanwhile, foreign transactions cost $2 and withdrawals abroad cost €2.
Once the promotion of this service expands to other regions across the world, it may help revolutionize how families manage their finances. This may be a key missing link in modern banking.
What do you think you think about Pixpay’s business model? Let us know your thoughts in the comment section.