Smart cards for teenagers: How are they different from debit cards?

Thanks to the smart cards meant for teenagers, parents now can upload pocket money directly to these cards linked to an app on their mobile phone. Those who are wary of their children overspending must know that these smart cards are not credit cards. So, the children can only spend what has been uploaded on these cards. On the top of it, the parents can also monitor the expenses incurred by their sons and daughters.

Junio: It is a smart card meant for giving pocket money to children connected to the junio app. You only need to upload money on the app and the card can be used for making online and offline payments. There is no charge for Junio.

There are no monthly or annual charges for the card. But to be able to use it, one must reload the card just as any other prepaid card. They charge Rs 99 as a one-time fee for ordering delivery of physical cards. However, the virtual card is free.

In this, you can set up pocket money on a weekly, bi-weekly and monthly basis. The card has a monthly limit of Rs 10,000 and daily limit of Rs 5,000.

Fampay: It is a numberless prepaid card which is issued by IDFC First bank. It is secure, easy to use and follows an end-to-end encrypted system. One has to use two-factor authentication for payments.

The online card can be accessed as soon as you create an account with Fampay. However, to be able to make offline purchases, one has to place an order for the physical card. One can swipe the card or use the tap and pay feature to transfer money digitally on such websites as Aamzon, Netflix, Zomato and Swiggy. You can book a movie ticket or order food.

The physical card has no numbers printed. The card numbers and CVV are stored in the FamPay app. This makes the card secure. In case the card is lost, it can be blocked anytime from the app. The young users can make offline purchases upto Rs 2,000 on PoS (point of sale) machines in a day.

YPay: Just as Fampay and Junio, this can also be operated from the YPay application on smartphones. The user does not need a bank account to be able to use the smart card. It facilitates a secure and safe mode of transaction. The card company projects itself as a smart card for students who may be staying away from the parents and they can send the money to their young children from anywhere. The parents can also set the limits on expenditure and. They can also keep a track on where the money is being spent.

These apps operated smart cards play an important role in preventing the teenagers from over spending the money. They also help them inculcate a fiscal discipline and become financially responsible and independent.