Insights

Facilitating Banking Solutions for A Pocket Money App

Overview

Banking is becoming common among teens. The need for parents to impart financial skills and responsibilities to their children is also therefore growing. With the world heading towards a cashless future, it makes sense for kids to be introduced to card payments.  

When the client came to us, they were looking to offer a virtual card solution that would help parents issue prepaid cards for their children. With the help of Nium, our client has been able to create a system that gives parents more visibility and control over their child’s spending habits.  

That said, the solution we implemented for this client can work for any business, regardless of industry.  

The Challenge  

Across the world, most parents still give pocket money to kids in the form of cash. This comes with its own challenges. Firstly, the lack of transparency and inability to monitor spending is a concern for parents. Today, teens are spending more money than earlier generations. According to Teen Health FX, teens in the US spend over $84 billion a year, on clothing, cosmetic products and accessories, food and entertainment, yet parents may not be aware of what their kids are spending on. In a recent study, it was found that most Singaporean parents rely on verbal updates of their kids’ expenses.  

Secondly, while it is important that children are financially literate and prepared for a cashless society, traditional banks don’t provide alternatives that parents can safely give to their kids, in place of cash — with a regular savings account, parents don’t have control over their child’s spending limit, and handing them physical debit cards involves the risk of theft or fraud.  

In these changing times, digital pocket money solutions assure more transparency and security than their conventional counterparts. They provide different levels of parental control and act as a simple financial management system for children to learn about money. Apps allow parents to add money to their kids’ accounts, set limits, monitor transactions, restrict purchases and set saving goals, preparing kids for a cashless future.     

When the client came to us, they knew they needed a product that caters to the younger age group and an ecosystem that promised parents more visibility of their child’s spending. With Nium’s virtual prepaid cards and technology platform, they were able to build a white-labelled app for parents to send funds directly to these cards and make pocket money easier to manage for parents as well as kids.  

Why They Chose Nium

The client approached us for our innovative technology platform and trusted card issuing capabilities. Through Nium’s payment rails and Visa’s network, our client can now issue branded cards to its customers, enabling them to:  

  • Load money into the prepaid card using their own debit/credit card  
  • Schedule allowance disbursements 
  • Set spending limits  
  • Track their child’s expenses in real-time  
  • Get an insight into what their children buy and thereby tackle any bad spending habits
  • Control the pace of money transfers, reduce unnecessary spending and encourage a culture of saving  
  • Lock the child’s account, if needed, with the click of a button  

How Do Companies Benefit From Nium? 

Nium’s expense management and digital card platform has helped businesses across sectors. Here are a few ways in which we helped our client, and can help you grow your business too:  

Enhanced User Experience 

With open-loop prepaid solutions, their customers can efficiently send allowances from a centralised digital wallet. It also gives them the ability to manage a budget for their kids, as a set amount of funds can be loaded in advance. 

Virtual and Physical Cards  

Nium allows businesses to provide its customers with unique logins and personal debit cards. The platform’s card customisation offering makes business like our client stand out from the rest.  

Streamlined Onboarding 

Nium is a Visa partner, which makes onboarding smooth and fast. You can move from onboarding to issuing cards in as little as 4 weeks, as opposed to longer time frames with other issuers which could stretch to 9-12 monthsFor corporations in a hurry, this feature can make a world of difference.  

Advanced Spend Control 

Real-time updates allow businesses to track and manage expenses as they happen. With this, customers are able to control how much their kids can spend (limits) and where they can spend (based on merchant categories), grant authorisations to spend, etc.  

Superior Security  

Customers can manage their program’s security in one place, including card lock/unlock, geolocation data and cardholder permissions. These features not only allow parents to oversee their child’s spending, but also prevent misuse of funds in case of fraud or theft.  

How It Works: 

  1. Setup: After integrating Nium, customers can set up and define their program using limits and controls. 
  2. Share: Once the program is complete, parents can assign cards and login details to their kids.  
  3. Fund: Their card is then prefunded with a set amount of money, like a regular debit card. 
  4. Spend: Children can spend the funds on approved items until the funds run out. 
  5. Track: Each payment is automatically tracked, logged and made into expense reports viewable within Nium’s app.  

More About Nium: 

Nium, formerly known as InstaReM, began in 2015 to simplify and optimise the finances of corporations. We eventually scaled the offering to serve SMEs and businesses in all industries. 

Today, Nium utilises radically innovative technology that makes spending, receiving, and managing funds faster, cheaper, and more transparent. It’s designed to integrate with our customer’s lives and business needs seamlessly.  

We have experts on the ground working with local regulators and financial institutions. With offices worldwide, we are in a position to foster these relationships. 

Connect With The Future of Payments: 

Contact us at [email protected] to learn how Nium’s business expense cards can streamline and automate your corporate finances. 

  

Card issuing capabilities that span the globe. Grow revenue, reduce cost and simplify the payment process by adding Nium’s card issuing capabilities to your business.