safer payments for children

Who's Minding the Kids?

MasterCard has created guidelines that recommends best practices for offering financial products to minors in the Digital Age.

Access to payment products is becoming easier for all ages and the market is expanding toward younger and younger people. Thus, a number of products for minors have arisen and MasterCard has published groundbreaking guidelines for offering financial services to minors. The Safer Payment Products for Minors guide is the same for both developed and developing economies.

As governments, the private sector and civil society are doubling down on their efforts to build a more inclusive society, the protection of the most vulnerable users is set as a priority for the financial industry as well, especially as many EU countries are lowering the age limit of becoming an adult. Austria, for example, allows 16 year olds to vote. This means new guidelines are needed to foster the needs and safety of minors, so they may be equally included in the financial aspects of their lives.

74% of parents would like their children to receive independent financial education on
how to use their payment product responsibly and money management, according to MasterCard survey.

Parents in the Digital Age expect financial service providers to promote responsible spending and financial decision-making whilst incorporating functionalities that allow for parental guidance towards a minor’s financial autonomy, according to a MasterCard study. In creating the guide, MasterCard has come up with a unique approach it hopes financial service providers can use to develop age-appropriate payment products for minors that meet both the minors’ needs and the parents’ expectations.