Safer Payment Products for Minors: Guiding Minors Towards Financial Autonomy
Access to payment products is easier, quicker and more convenient than ever before as a result of the worldwide increase in digital payment services. These payment products are playing a pivotal role in creating greater access to financial services, as well as increasing financial inclusion and education - particularly for minors. As the number of products for minors rise, it is incumbent upon financial service providers to offer safe, secure and responsible products that support not only the financial needs of minors but also help mitigate the associated risks.
This guide has been developed to provide a tool for financial service providers in both developed and developing economies that:
- Helps make payment products for minors safer;
- Encourages responsible spending behavior;
- Promotes active money management from an early age.
The guide provides 10 recommended practices:
- Restrict products and services inappropriate for minors;
- Promote responsible spending;
- Educate minors on how to use their payment card safely;
- Provide saving and payment facilities;
- Enable parents to choose payment types;
- Allow parents to set card restrictions;
- Provide parental access to spending behavior;
- Protect minors and their privacy;
- Deliver appropriate marketing initiatives for both parents and minors;
- Provide financial education tools to help minors manage their money.