Venmo, the social payments app, is soon going to officially allow teens to have accounts with their parents’ permission.
Teens already use the service, with parents opening accounts through their own, The Associated Press reported. But doing so violates Venmo’s terms of service.
The company is soon launching its Venmo Teen Account for 13- to 17-year-old users.
The accounts, which will come with a debit card, will allow parents to not only give their children money but to also monitor transactions and adjust privacy settings.
Parents will also be able to lock and unlock their children’s debit cards and see who is sending them money. The cards will be able to be used at ATMs with a $400 daily limit. They will be free to use at participating ATMs or will be subject to a $2.50 transaction fee.
There are no additional fees to create or maintain the accounts.
Venmo, which is owned by PayPal, said the new accounts were created in response to frequent requests from users, the AP reported.
Venmo isn’t the only company that offers a teen-focused financial account.
Chase introduced its Chase First Banking for children as young as 6 years old, as well as a checking account created for high schoolers. Both come with debit cards and parental monitors.
The high school account gives the teens access to Zelle, another direct payment system, as well as credit monitoring.
Another option is the Greenlight debit card for teens. It allows parents to control spending limits, track payments and connect transfers to chores or grades. Parents can also block some purchases. Greenlight comes with a monthly fee.
The Venmo Teen Account will be launched to select customers next month before rolling out to everyone. If you’re not selected in the initial group, you can be notified when you’re eligible by signing up for alerts.
For instructions on how to sign up, visit PayPal’s website.
