Gone are the days when parents used to handover some cash to their kids as allowance. In this age of technological sophistication, you could barely find cash lying around. Greenlight has launched a new smart debit card for kids which can be given to them by their parents. The Greenlight smart debit card has offered attractive features concerning the financial safety of children and how they can be financially responsible. Using a mobile app, parents can instantly reload funds into their kid’s smart debit card and also restrict their purchase around merchants.
How was Greenlight Formed?
Tim Sheehan, CEO and co-founder of Greenlight, birthed the company while addressing his own problem as a parent to make available money for his kids when no cash at hand. After a survey, he found that parents did not have the same money problem–in fact, some of them wanted their kids to understand financial responsibility while others wanted to take total control of how their kids spend money. However, the invention of the Greenlight smart debit card has been expected to address of all these issues. Moreover, parents can set store-level controls, receive purchase alerts, instantly transfer funds, and freeze cards or automatically fund allowances.
How does Greenlight make Profit?
Greenlight makes revenue out of interchange fees from all transactions made with a smart debit card and monthly subscriptions. However, the company does not charge additional transaction or ATM fees. Investors such as TTV Capital, New Enterprise Associates (NEA), Social Capital, and Relay Ventures have already raised a US$7.5 mn for the company in less than six months. During the same period, a 10,000 paying customers have been signed up by the company.
Kids above 8 through 18 years of age can avail the service at US$4.99 per month. Each family can apply for five smart debit cards.