Financial tech company Pixpay, which focuses on teens’ financial management and cashless transactions, received $3.4 million in funding from Global Founders Capital.
The company based in France aims parents to send pocket money to their kids via the Pixpay app and ditch cash altogether. Kids as old as ten years old can create a Pixpay account and receive a debit card with the same features as a challenger bank.
With a partnership with Treezor, Pixpay can generate debit cards and e-wallet accounts using an API.
Pixpay app also lets teenagers customize a PIN code, lock or unlock card, receive notifications upon a transaction, and set spending limits. This card can be used for online payments and accept money from another account.
For parents, the Pixpay app also allows to monitor and manage multiple accounts of children with a Pixpay account. According to its developers, the app is great for parents who are separated and need to fulfill their duties in providing for their children.
Pixpay claims, “[The app] will help with spending and saving management, providing real-time purchase notification and analysis of where [the] money goes, along with offers on popular brands.”
While Pixpay is not the first banking account for teenagers but the idea of an online account changes the game for traditional banks. Starling Bank rolled out the current account designed for teenagers in 2018. It also offers the same functionality of a full savings and current account but it lacks some features available at Pixpay, like the ability of parents to monitor and track the transactions of their children.
Pixpay charges €2.99 per month per card. Payments and ATM have done within the Eurozone costs €0 but for foreign currencies, a 2 percent charge is added per transaction. In addition, ATM withdrawals cost €2 per withdrawal.
