Current, A Visa partner launches app controlled card
Credit card giant Visa has partnered with Current, a payment based startup organization to unveil an app controlled debit card for kids and teenagers. The startup is offering three packages according to the official release website. Visa has going a group of other banks helping startups in this very sector. The product intends to ease the control of allowance money assigned to kids by parents.
Granting allowances to kids could get a bit hectic for many parents when they have to set aside money for different purposes – from school to mall purchases, at the book store or even at a restaurant. With Current, parents can now remotely approve or disprove their child’s financial habits. Parents can choose to block their kids’ access to certain business while granting it to the others. They can block bars, certain hotels, and allow restaurants and movie theaters.
Apart from the pros of dealing with kids’ allowances, and as a money management system, Current can also help kids get accustomed to money that is not hard like cash, promoting a sense of responsibility with cards.
How it works
Parents can transfer funds from their bank accounts and stream it directly into their kids’ Current wallet, which allows for less cash to be held by parents and kids. “I worked on Wall Street for seventeen years as a trader and manager, and now as a father, I wanted to build something with financial discipline that would help my daughter better manage her finances” says Stuart Sopp, the founder of Current.
Auto-deposit allowances based on chores
The Current App also has a feature called Auto-transfer. It lets the parents update their kids’ wallets on a weekly basis. Parents can design chores and set priorities for them. They can review the tasks once the chore is complete, and can then decide on how much to pay their children. The users can set a daily spending limit (that can go up to $2000) and ATM withdrawal limit up to $500. Parents can always edit the defaults and instate their own limits at any time using the app.
Automatic money management
Each Current card has three sub-wallets – Spending, Saving and Giving, and the company website has made the following claims:
- The spending wallet links to the debit card and is for day-to-day expenses. Parents can view allowances, and balances on these allowances. Parents can even assign chores to each allowance.
- The savings wallet acts as a savings account.
- The startup claims to want to make charitable altruism a cornerstone of its business model. This is accomplished by the giving account. According to the company website, “It helps to teach empathy”.
Transaction security is a central factor for the legitimacy of any financial product. Current has gone above and beyond in making sure that every transaction stays secure on both ends. The card supports secure 256-bit end-to-end encryption, and supports all popular mobile platforms. Other security measures include: instant notifications, ability to pause a card, no overdrafts, and fingerprint locks, making a handy tool for everyday activities.
We see that the financial world is catching up with information technology. What is yet unknown are the technologies that are yet to come as part of the ubiquity of high speed Internet, and encryption technologies. We will see what market competition brings in the world of controllable financial products.