Teenagers turn money savvy, courtesy fintech
- In India, at least six startups operate in the kids’ fintech space, including FamPay, Junio, Pencilton, YPay, Visa-networked Walrus, a Y Combinator-backed company, and Yodaa, a product of Singapore-based Atlantis.
Pranjal Patel, a 10th standard student in Khandwa, Madhya Pradesh, is like any other 15-year-old: he loves online games and hanging out with friends. But that’s not all: he has been one of the early adopters of fintech startup FamPay’s prepaid card.
Patel is among Indian teenagers who are being targeted by apps with the idea of introducing them to cashless transactions.
In India, at least six startups operate in the kids’ fintech space, including FamPay, Junio, Pencilton, YPay, Visa-networked Walrus, a Y Combinator-backed company, and Yodaa, a product of Singapore-based Atlantis.
Firstpay Technologies’ Junio launched a proof-of-concept this February with 100 users. A full-fledged launch followed in March, but due to the second wave of the pandemic, user traction started only in May, June and July, when growth doubled each month.
As of mid-August, Junio had 250,000 registered users. Up to 80% of its user base is organically captured via word-of-mouth and referral campaigns, the company said. It now expects to reach 500,000 users or more within the next four-five months.
A physical Junio card, currently priced at ₹99, works on the RuPay network (recently migrated from Mastercard owing to Reserve Bank of India curbs on Mastercard), with RBL Bank as its issuer.
The Junio card provides parents with the option of introducing budget and category-based classification of monetary allowances every month and the creation of savings goals.
Bengaluru-based Fampay Solutions markets its prepaid cards to encourage kids to do digital transactions through a family friendly app. The company’s FamCards are issued through a partnership with IDFC First Bank. The startup was born when IIT Roorkee graduates Sambhav Jain and Kush Taneja decided to collaborate on their second product.
Students in universities and schools, the two realized, were largely dependent on on-demand and ad-hoc allocation of money from guardians, thereby losing out on savings skills.
With covid-19 lockdowns being imposed around then, they pivoted from an offline-focused solution to an online one and eventually rolled out the RuPay-enabled cards in August 2020. .
With a current tally of 2 million users, FamPay launched a second version late last month, which comes registered on the Visa network.