Monday 15 July 2019
Today, Aussie parents welcome a new low-cost prepaid card and app combo for kids and teens, ZAAP.
Owned by Zenith Payments, which has been providing prepaid gift cards since 2005, ZAAP is an Australian owned and operated digital money alternative for youngsters.
ZAAP recommend this new prepaid Mastercard for children aged between 8 and 17, and it can cost parents $9.95 to initially purchase the card.
The company aims to empower young people and guide them to financial success by exposing them to digital banking early in life.
“As digital banking becomes more and more popular, the way we teach kids about managing their finances is changing and we have to keep up with trends,” Mozo Director, Kirsty Lamont said.
“It’s important that there are ways for young Aussies to be exposed to digital banking, but in a safe and controlled way that lets parents take the reins when they need to.”
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They have the option to design their own card by uploading a personal photo to the ZAAP website or choosing from a range of designs - although personalised cards come with a $20 purchase fee.
Alternatively, kids can use a wearable band, which is installed with a Paypass chip to make payments and comes in three colours - pink, blue or black. This also comes with a purchase fee of $20.
ZAAP also released an app that is designed to help parents monitor and guide children financially, as well as give kids the chance to set up savings goals.
Whether a kid uses a customised ZAAP card or a wearable ZAAP band, everything can be tracked and controlled through the ZAAP app. There are two sets of log-in details for the same card, one for mums and dads, and one for the child.
Parents can manage multiple childrens’ ZAAP accounts with the family, with the handy Parent Wallet which allows them to make deposits, block the card in case it's lost and monitor their childrens’ spending.
Parent Wallets can be topped up through an external linked debit or credit card, and transfers from Parent Wallets to Child Accounts can be made manually within the app or using the ‘set and forget’ option to make regular transfers which could be ideal for weekly pocket money.
But don’t forget the kids! For children and teens, the ZAAP app allows them to check their balance as well as set up savings targets, through a separate child’s Savings Wallet.
So just to recap, ZAAP has 5 main features to help both parents and kids in teaching and learning about money management.
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Aside form the initial purchase fee, you'll also need to look out for fees including:
If those fees have you second guessing, you might want to search for a regular bank account and debit card for your kids instead, and look for a fee-free option you can keep a small balance in.
Interested in what other digital banking options are out there? Head over to our fintech hub for a bunch of useful articles about what’s currently on the market.