Westpac offers a card for (very) young children
The Australian bank Westpac has just crossed a new boundary when it comes to equipping children with banking products and services. It is now dedicating a payment card to children aged 8. The announcement is justified by the promise of education and autonomy, but above all it pushes back the limits of commercial appetite.
FACTS
- From now on, Westpac customers aged 8 to 13 will be able to link a Mastercard debit card to their Westpac Choice Youth account.
- This card must first be ordered by the child's parent or guardian, after the account has been opened.
- For children under 14 with a debit card, the weekly debit card spending limit is set at $50 by default.
- For children over 14, Westpac retains its model and automatically proposes a debit card attached to each account.
CHALLENGES
- Open up your customer portfolio: Until now, Westpac has offered payment cards to children aged 14 and over. Today, it is opening up a new market by extending the minimum age for its potential customers in terms of payment equipment.
- Expanding its affinity offering: The announcement that the minimum age for access to a payment card has been lowered is part of Westpac's wider expansion of affinity functions for younger customers. These include a pocket money feature, push notifications on children's account activity, the ability for parents to temporarily lock and unlock a card, and the blocking of certain high-risk transactions.
- Responding to needs: Westpac justifies itself by pointing out that its latest Youth Money Report revealed that parents were looking for new educational ways to help their children gain financial independence, while ensuring their security. More than half (53%) of Australian parents said they would like their children to have a debit card to teach them how to manage money.
MARKET PERSPECTIVE
- In France, the minimum age for having a payment card depends on the type of card and the banking establishment. Generally speaking, it is possible for a child to obtain a bank card from the age of 10, under certain conditions and with parental consent. This promise is at the heart of the Pixpay offer.
- Most banks also offer payment cards for minors aged 12 and over, always under the supervision of their parents or legal guardians.
- Younger people represent a prime target for banks, whose interest in this target group is growing all over the world. Starling Bank was studying their relationship with financial services in October 2023, before making its services for children free of charge.