Osper launches prepaid card and app banking service for kids

UK startup Osper is promising to reinvent banking for young people through a new prepaid card and mobile app-based service.

Aimed at the UK's seven million eight to 18 year olds, Osper was founded by former maths teacher and M-Pesa staffer Alick Varma as a way to give children financial freedom and encourage them to take responsibility for their money.

The firm has raised over $10 million in pre-launch funding from investors including Index Ventures, Horizons Ventures and Travelex CEO Peter Jackson.

Kids get a prepaid MasterCard card which they can use for online and in-store purchases, as well as for ATM withdrawals. Meanwhile, an iOS and Android app provides instant balance checks, and transaction monitoring, including via text alerts.

Parents can also access the app from their handsets to monitor spending and load funds, creating, says Osper, more transparent and open conversations about money.

Says Varma: "Osper gives young people the freedom and control needed to 'learn by doing' within the framework of a safe and secure family environment."

Channels

Retail banking Payments

Keywords

Cards Mobile & online banking

Comments: (3)

Jesus Freire - IBM - Madrid 30 June, 2014, 10:51

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Interesting for banks and traditional players as the internet born companies and new entrants in financial services are now much closer to the under 18 than the traditional banks.

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A Finextra member 30 June, 2014, 11:29

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Errrr. Isn't that exactly the same proposotion as currently offered by GoHenry Safe Pocket Money which was founded in 2011? Seems identical .....(though the monthly charges on Osper are cheaper!)

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A Finextra member 01 July, 2014, 08:34

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This is a great product facilitated by new technology. Its another good example of how mobility is shaping the banking landscape. Its not a huge change but a small movement of a small element of what banks do.

Shame non of the bank players have done something like this as the major benefit is a stream of young customers coming through in to the prime audience when they get older.

This generations piggy bank and clip folder :)