With the rise in popularity of Contactless and Chip&PIN payments, debit cards have overtaken cash since July 2017 in the United Kingdom.
Piggy banks could be a thing of the past. Pocket money is also becoming cashless with debit cards being offered to children from eight to 18 years old and as young as six years old in one case.
The debit cards aimed at children and teenagers are prepaid cards, have no risk or possibility of going overdrawn and are all managed by an associated smartphone app in which a child can learn about good money management and budget for different things.
Parents also get an app from which they can restrict where their child can spend money, make regular and one-off payments and block the card if necessary.
In the UK, there’s three main offerings, each with their own strength, weaknesses and costs.