08 February 2016

Osper launches prepaid card and app banking service for kids

30 June 2014  |  6881 views  |  3 Osper

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."

Comments: (3)

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

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.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
A Finextra member | 30 June, 2014, 11:29

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!)

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
David Brear - Previously Infosys, Lloyds Banking Group and Aviva - London | 01 July, 2014, 08:34

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 :)

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

20 June, 2014
14 August, 2013
13 August, 2010

Top topics

Most viewed Most shared
Fintech rising: Resistance is futile, says...
11444 views comments | 51 tweets | 44 linkedin
Digital transformation driving earnings at...
9914 views comments | 47 tweets | 39 linkedin
Visa opens up to developers
8134 views comments | 23 tweets | 41 linkedin
ECB eyes up European P2P payments
8009 views comments | 29 tweets | 39 linkedin
It may take ten years, but blockchain tech...
6776 views comments | 21 tweets | 19 linkedin

Featured job

Competitive Package
New York City, NY. USA

Find your next job