Venmo targets young consumers and parents with new teen accounts and debit card

Venmo today announced the introduction of Teen Accounts, allowing parents and legal guardians to open a Venmo account for their teens so they can send and receive money. The account, which has no monthly fees, also comes with a Venmo Teen debit card. Each Venmo Teen account is connected to and managed by a parent’s personal Venmo account, but the Teen account has a separate balance from the parent’s.

The Venmo Teen Account allows parents to monitor transactions, manage privacy settings, and send money to their teen. Teens can track their own spending in the Venmo app and may be eligible to receive direct deposits, allowing funds to be paid directly into the Venmo Teen account from an after-school job, for example.

Parents can choose whether or not to grant their teens access to the Venmo app. They can view Venmo Teen account balance and transaction history, manage Teen debit card PIN, lock and unlock debit card, view their friends list and restrict users from interacting with the account. Parents can monitor up to five Venmo Teen accounts from their personal Venmo account. Although parents can’t block payments from their teens, they are automatically notified.

It’s worth noting that teens can’t access some of the features that come with a standard Venmo account, such as crypto. Venmo says it has no current plans to add additional features for teen accounts, such as savings accounts or budgeting tools.

“Venmo is a natural place for teens to learn how to manage money responsibly, especially since 86% of Gen Z want to use an app to learn more about personal finance,” said Erika Sanchez, vice president and general manager of Venmo, in a statement. “For parents or legal guardians, the Venmo Teen Account allows them to give their teens some financial flexibility, while giving them parental control and visibility into their teen’s spending habits.”

Picture credits: Venmo

The company says research shows that more than 45% of Gen Zers prefer to have a conversation with an adult to learn more about personal finance, and more than 50% of parents want to use an app to help their kids learn about life. money management. Venmo says the Teen Debit Card and Venmo Teen Account can help parents and their teens learn money management skills together.

To get started, parents need to create a Venmo Teen account in their teen’s name. They can do this by going to the “Me” screen of the Venmo app, tapping on their name in the top left corner, then selecting “Create Teen Account” from the drop-down menu. Parents can select a teen debit card color and enter information about their teen, such as name, date of birth, and address.

It’s worth noting that Venmo seems to have been planning this launch for quite some time. In 2020, Venmo was spotted prototyping a new feature that would allow adult users to open a debit card for their teens that was connected to their account.

By diving into teen banking, the company may establish a new reason for adults to sign up for Venmo. The service is already a popular way for young people to split the bill for things like Uber rides or dinner, so it makes sense for the company to bring social banking to a teenage demographic. However, Venmo is lagging behind in the teen debit card market. Startups like Greenlight and Step allow parents to manage teen spending on dedicated debit cards.

The Venmo Teen Account will be rolling out to select customers next month and will be widely available in the coming weeks.